The interest available to illegal lenders is reduced from 24% per annum to 6% per annum.

The fine for illegal lenders will be raised up to 100 million won.

On the 28th, the Financial Services Commission announced that it would prepare an amendment to the Act on the Registration and Protection of Financial Users, such as Loan Business, and to announce legislation from the next day to August 10th.

First of all,'unregistered lenders and unregistered lenders' who do lenders and lenders without registration have decided to change their names to'illegal private lenders and illegal lenders'.

Currently, illegal private financiers, like registered lenders, have been able to receive interest rates of up to 24%, but the amendment limits the allowable interest to 6% per year.

The'overdue interest re-loan' that re-borrows the amount of the principal plus the delinquent interest and the'document-free loan' without a contract are invalidated.

Punishment for illegal private financing is also greatly strengthened.

In the case of a loan/loan brokerage business without registration, the current fine of 50 million won is raised to a maximum of 100 million won.

Even if it receives interest exceeding the legal maximum interest rate, it has decided to raise the current fine of 30 million won to a maximum of 100 million won.

In the case of false and exaggerated advertisements, punishment will be intensified from a maximum penalty of 50 million won to a prison sentence of three years or less or a fine of 100 million won or less.

To protect the rights of lender users, lenders must keep contracts and contract-related documents.

If the user requests the return of the original contract after the debt repayment is over, it is also included in the amendment.

The Financial Services Commission plans to finalize the government proposal through the process of collecting opinions during the legislative notice period and submit it to the National Assembly within this year.