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South Korea Streamlines Reporting and Legal Support for Illegal Private Lending Victims
Commercial Services · Financial Publishing/Services · yonhap_finance · 2026-08-30
The Financial Services Commission is enhancing its one-stop support system to simplify reporting and provide stronger legal aid for illegal lending victims.
What Happened
Streamlined Reporting: The Financial Services Commission has launched a new one-stop reporting portal on the Financial Supervisory Service website to simplify the process for victims of illegal private lending. This initiative eliminates the need for redundant data entry and allows victims to access multiple relief programs through a single application.
Enhanced Legal Aid: The government has improved the coordination between law enforcement and the Credit Counseling and Recovery Service (CCRS). Investigators will now directly facilitate referrals to the CCRS, which will act as a legal representative for victims to handle evidence and support recovery lawsuits.
Operational Results: Over the past six months, the system has processed 656 reports, successfully halting 3,421 cases of illegal debt collection and referring 895 lenders for police investigation. These measures have proven effective in providing immediate relief to those targeted by predatory lending practices.
Future Outlook: Authorities plan to further expand the online support system by October to ensure that victims can access help anytime and anywhere. This effort aims to eliminate blind spots in victim protection and strengthen the overall response to illegal financial activities.