Gyeonggi Province Cracks Down on Illegal Moneylending in Traditional Markets, Offers Support

[Suwon Ilbo=Park No-hoon Reporter] At a traditional market in Gyeonggi Province, a merchant struggling with difficult circumstances due to COVID-19 sought counseling through the Gyeonggi Province Fair Trade Special Investigation Police Unit's 'Visiting Illegal Moneylending Damage Counseling Center' after encountering illegal moneylending without knowing the legal interest rate cap of 20%.

The merchant was able to receive guidance on reporting procedures and remediation methods.

In the case of another traditional market, merchants who had difficulty disclosing their use of private loans received detailed counseling on damages through the province's special investigation police visit and decided to seek assistance such as 'ultra-low credit loans' from the Gyeonggi Province Low-Income Financial Support Center.

The Gyeonggi Province Fair Trade Special Investigation Police Unit announced on the 4th that it had operated the 'Visiting Illegal Moneylending Damage Counseling Center' at 9 traditional markets and shopping districts in the province, conducting approximately 2,890 consultations.

The Visiting Illegal Moneylending Damage Counseling Center is an initiative that visits areas with concerns about illegal moneylending damage and provides victim counseling, reporting, and remediation procedure guidance.

From April 2 to 22, Gyeonggi Province operated the Visiting Illegal Moneylending Damage Counseling Center at a total of 9 locations: 7 traditional markets (Ansan Citizens Market, Bucheon Wonmi, Anyang Central Injung, Yongin Central, Yangpyeong Mullalkkaun, Bucheon Sangdong, and Guri Traditional Markets) and 2 shopping districts (Sihwa Tools Shopping Center and Seongnam Central Underground Shopping Center).

The operation method of the damage counseling center involved counseling teams composed of dedicated illegal moneylending investigators setting up temporary counseling booths to directly provide victim consultations and intake, as well as guidance on reporting and remediation procedures.

When damage was confirmed, the center provided guidance on 'ultra-low credit loans' through the Gyeonggi Province Low-Income Financial Support Center and distributed promotional materials containing damage types and countermeasures.

As a result of on-site counseling visits, the counseling center recorded approximately 2,890 consultations from approximately 8,400 stores, distribution of approximately 5,700 promotional pamphlets for damage prevention, 66 announcement broadcasts, text messages sent to approximately 8,650 people, and promotions on 6 digital displays.

The Visiting Illegal Moneylending Damage Counseling Center, which first began in February 2020, has been conducted to date at 24 traditional markets and shopping districts in the province (16 in 2020, 8 in 2021), 5 universities (2021), and 4 industrial complexes (2020).

Kim Young-soo, head of the Gyeonggi Province Fair Trade Special Investigation Police Unit, stated, "The Visiting Illegal Moneylending Damage Counseling Center was selected as an excellent initiative for eliminating illegal moneylending by the Financial Services Commission in 2020 and is being expanded to other local governments such as Seoul." He added, "Going forward, we will do our best to minimize and prevent damage caused by illegal moneylending through the damage counseling center."