The South Korea Financial Services Commission has finalized enhancements to its one-stop support system for victims of illegal private lending, effective Aug. 31. The changes consolidate online applications for relief and strengthen support from police reporting through investigation and civil litigation, advancing the commission’s broader focus on protecting vulnerable debtors and combating illegal lending. A new portal on the Financial Supervisory Service website allows victims to submit information once and apply for measures including stopping illegal collection, appointing a debtor representative, suspending telephone numbers and social media accounts, and referring cases for investigation. Police investigators will ask victims whether they want one-stop assistance and help them request counseling. With the victim’s authorization, the Credit Counseling and Recovery Service can act as complaint representative throughout the investigation, obtain case materials, provide supplementary evidence, monitor progress and receive the outcome. Cases in which an illegal lender is identified can then be referred to the Korea Legal Aid Corporation for claims seeking contract invalidation, restitution of unjust gains or damages. During the system’s first six months, 821 people received counseling and 656 victims reported 4,705 illegal debts. Officials demanded an end to collection on 3,421 debts and reached debt-termination agreements in 645 cases. A fully online service is planned for October, enabling victims to receive a dedicated caseworker and pursue relief without visiting a support center.

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