South Korean loan shark who allegedly drove single mum to suicide to face jail term
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SEOUL - A private lender whose excessively harassing debt collection allegedly drove a single mother in South Korea to suicide is standing trial, with prosecutors seeking a seven-year prison sentence.
At a hearing held on May 14 at the Seoul Northern District Court, prosecutors accused the defendant, identified by the surname Kim, of violating the Act on Registration of Credit Business and Protection of Finance Users, the Fair Debt Collection Practices Act, and other related statutes.
Kim is accused of lending 17.6 million won (S$16,300) to six individuals facing financial difficulties between July and November 2024.
The loans carried annual interest rates as high as 5,124 per cent – over 250 times the legally permitted maximum of 20 per cent.
The authorities confirmed that Kim had not registered as a licensed credit business operator.
During collection efforts, Kim reportedly sent threatening messages not only to the borrowers but also to their family members and acquaintances.
One of the victims, a woman in her 30s raising a young daughter in kindergarten as a single mother, died by suicide in September 2024. Prosecutors alleged that the loan shark’s harassment played a part in her death.
“(The defendant) sent threatening messages to the debtor and caused her to commit suicide,” prosecutors stated during the hearing, noting that Kim had even sent images of weapons to acquaintances of the victims.
The sentencing hearing is scheduled for June 11. THE KOREA HERALD/ASIA NEWS NETWORK
