The South Korea Financial Services Commission issued consumer guidance on illegal private lending ahead of the Chuseok holiday, warning that advertisements offering same day, document free or unsecured loans may lead to unlawfully high interest and abusive collection. Consumers should first check their eligibility for government supported low interest products, verify that lenders are registered and stop the application process if a lender demands annual interest above 20%, advance payments or excessive personal information. Loan agreements carrying annual interest above 60% are void as to both principal and interest under the amended Money Lending Business Act, leaving borrowers with no repayment obligation and allowing them to seek the return of amounts already paid. Victims should preserve contracts, transaction records and collection communications and use the one stop support system, which can arrange collection suspension from the day of reporting and connect them with redress. Online reporting remains available throughout the holiday, while dedicated in person support has expanded from eight to 22 centers nationwide.

Original source