SEOUL: A private lender whose excessively harassing debt collection allegedly drove a single mother to suicide is standing trial, with prosecutors seeking a seven-year prison sentence.
At a hearing held Wednesday (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 (approximately US$12,600) to six individuals facing financial difficulties between July and November of last year.
The loans carried annual interest rates as high as 5,124 percent — over 250 times the legally permitted maximum of 20 percent.
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 Korean Herald/ANN
