Input 2020.06.23 12:00
Announced the government's plan to eradicate illegal finance
On the 23rd, the government announced a plan to eradicate illegal finance. It was a matter discussed at the anti-corruption policy meeting presided over by President Moon Jae-in the previous day. The Financial Services Commission, the Ministry of Justice, the National Police Agency, the National Tax Service, the Ministry of Science and ICT, the Korea Communications Commission, and the Financial Supervisory Service have made a government-wide task force (TF) and decided to pursue countermeasures against all-out illegal private finance.
The government believes that the damages are increasing as illegal private financial crimes evolve into various new methods. However, it was pointed out that the basis of regulation was distributed by departments according to the type of crime, and the route for remedy was also divided by various agencies.
In particular, the problem of illegal private financing intensified after the corona crisis. Reports and reports of illegal private financial damage amounted to an average of 35 cases and 33 cases in April and May this year. It was 1.6 times larger than last year (20).
Accordingly, the government announced from the 29th to the end of the year as the “Special eradication period for illegal finance” at the pan-government level, and decided to approach it at the pan-government level.
The government first decided to limit the benefits it can take from illegal private financing. Currently, even if you do illegal business, you can keep up to the maximum legal interest rate (24%).
In the future, the loan business law was revised to allow interest rates up to 6% for illegal business operations.
In addition, they decided not to accept overdue interest and reinvestment loans. For example, if you borrow 1 million won at a 20% interest rate and re-loan 1.2 million won, including overdue interest, you will recognize the interest rate only on the original 1 million won. Now it is possible to charge interest on all 1.2 million won.
This is to prevent the avoidance of regulations on the highest interest rate by starting with small loans and increasing the amount of overdue principals and re-loaning them.
No-data loan contracts are also prohibited. Now, even if a loan is made without a contract, the effect is recognized, but the loan agreement will be invalidated in the future.
The government also decided to strengthen the rule base for illegal private financial advertising in online media.
Now, even when online media is paid for and advertises loans, there is no obligation to check the illegality of advertisers. In the future, it was decided to impose a duty to prevent illegal advertisement distribution.
In addition, it decided to strengthen the sanctions level for illegal private financial advertisements that impersonate public institutions.
In addition to the improvement of the system, the government decided to launch a government-wide crackdown on illegal private financing and to conduct tax investigations on tax evaders.
In addition, online advertisements and phone numbers for illegal private financing are promptly blocked, and free lawyer support is provided by the Legal Aid Agency for victims.