Loan Shark Arrested After Driving Single Mother to Suicide

A loan shark has been arrested and charged after allegedly harassing a single mother in her 30s, leading to her tragic suicide. The Seoul Northern District Prosecutors' Office announced on January 3, 2025, that a man in his 30s, referred to as A, has been indicted while in custody for violating multiple laws, including the Moneylending Business Act and the Act on the Collection of Claims. This follows the suicide of the single mother, who was raising her kindergarten-aged daughter, approximately four months after she fell victim to illegal debt collection practices.

According to prosecutors, A lent a total of 17.6 million won to six individuals between July and November of last year without proper registration as a moneylender. He is accused of sending threatening messages to the families and acquaintances of these borrowers to collect debts. The annual interest rates charged by A reportedly ranged from 2,409% to 5,214%, far exceeding the legal limit of 20% on the principal amount. Additionally, he allegedly used accounts and mobile phones registered under other people's names to operate his loan business.

The investigation, conducted in collaboration with the police, revealed that A had been engaging in illegal moneylending and debt collection for several months, with five more victims identified in connection to his activities.