A private lender was sentenced to four years in prison on Wednesday, with the court ruling that his repeated threats against a single mother in debt to him had caused her suicide.
The Seoul Northern District Court found the defendant, surnamed Kim, guilty of violating the Act on Registration of Credit Business and Protection of Finance Users, the Fair Debt Collection Practices Act and other related laws.
The court also ordered the seizure of 7.17 million won ($4,853) in illegal profits.
Kim was found to have engaged in unregistered money lending, providing a total of 17.6 million won to six individuals. He charged interest rates ranging from 2,409 percent to 5,214 percent, far exceeding South Korea's legal maximum of 20 percent.
He also sent threatening text messages to debtors and their family members, demanding repayment of both principal and exorbitant interest.
One victim, a woman in her 30s with a daughter in kindergarten, died by suicide in September 2024 after prolonged harassment by the defendant.
“The series of actions the defendant took in collecting his debts was severe enough to drive the victim to take her own life,” the court said.
“The borrowers were financially vulnerable and had little choice but to turn to private loans. The defendant exploited their circumstances for personal gain, using profanities and threats that cannot be repeated.”
If you’re thinking about self-harm or suicide, contact the Ministry of Health and Welfare’s helpline at 109, available 24 hours a day, 7 days a week. Please request a translator for English-language services. — Ed.
minsikyoon@heraldcorp.com
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