<Anchor> As the

economic situation in Corona was difficult, the number of ordinary people complaining of illegal private financial damage increased. The government decided to drastically lower the interest limits that can be received by unregistered lenders and enter into intensive crackdown by the end of the year.

Reporter Chan-Keun Park on the sidewalk.


Mr. Lee borrowed money from a lender five years ago to transform the money needed to run a restaurant.

It started with a few million won, but with more than 100% of illegal high interest rates a year, debt increased by more than 40 million won.

[Mr. Lee/ Victim of Unlawful Private Finance: Lending 5 million won, 500,000 won interest, one month. If you don't give it, you will be tied and tied (interested to the principal), and you will be 10 million won, 10 million won will be 20 million won, and later will be blocked.]

Report of this illegal private financial damage since February when the corona incident began in earnest The trend is a 50.60% increase from last year.

The government first decided to lower the interest limit for unregistered lenders from the current legal maximum rate of 24% to 6% per year.

If you return the money over the sum of the principal and interest, calculated at 6% per year, you will be able to sue the lender for the excess.

[Lee Myung-soon/ Director of Financial Consumers, Financial Services Commission: For the vulnerable, it is a free lawyer and legal representative of the Legal Aid Agency. You can apply through litigation agency services.]

Until now, even if you borrow money only verbally without a contract, the validity of the loan has been recognized, but the contract will be void in the future.

The so-called re-loan, which calculates the interest rate by putting interest on unpaid interest back on the principal, decided not to take effect.

It is also planning to significantly increase the legal form of illegal private financing, which amounted to only 50 million won.

The government has established a pan-government TF to focus on crackdown on illegal private finance until the end of the year.

(Video coverage: Jang Un-suk, Video editing: Jong-tae Kim, CG: Seung-hyun Seo)