Watchdog chief vows to root out illegal private money lenders

Lee Chan-jin, governor of the Financial Supervisory Service (FSS), speaks at Kiwoon Securities headquarters in Seoul, Monday. Yonhap

The chief of the country's financial watchdog said Thursday his agency will team up with other government agencies to root out illegal acts by private money lenders.

In a forum, Lee Chan-jin, governor of the Financial Supervisory Service (FSS), said illegal money lenders continue to impose hefty interest rates on borrowers, undermining their daily lives.

"We will work with the government to eradicate illegal money lenders. It is not just a problem facing individuals, but one that should be resolved by the whole society," Lee said.

His remarks came as the number of complaints against loan sharks spiked, jumping to 14,316 in the first 10 months of the year, from 11,875 a year earlier, according to the FSS.

Earlier, the Financial Services Commission said it will seek to revise related laws under which those that violate the 20 percent annual interest rate limit on their loans may face a maximum prison term of five years from the current three years or a maximum fine of 200 million won ($142,000) from the current 30 million won.