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Photo = Yonhap news |
[Alpha Biz= Paul Lee] South Korea’s Financial Supervisory Service (FSS) announced on June 15 that, starting June 16, it will block illegal private lenders from using KakaoTalk accounts in collaboration with Kakao. The measure aims to cut off a key communication tool frequently used in unlawful debt collection activities.
The decision comes amid growing concerns that illegal private lenders are increasingly exploiting social media platforms for abusive and threatening collection practices. By suspending the use of KakaoTalk accounts linked to these activities, authorities hope to reduce financial harm and protect vulnerable individuals.
Victims of illegal collection practices—including verbal abuse, threats, repeated late-night contact, disclosure of debt to third parties, or coercion for third-party repayments—can now report such cases directly through the KakaoTalk app. The FSS also noted that demanding loan contracts or promissory notes via KakaoTalk constitutes an illegal lending act and is also subject to reporting.
To report an account involved in illegal lending or collection, users are advised to first delete the account from their friend list, then click the menu icon in the top right corner of the chat window and select “Report.”
The FSS emphasized that the identity of whistleblowers will remain strictly confidential to prevent any secondary victimization. Additionally, from July, the agency will enable illegal lending reports to be submitted via its official website.
This follows previous actions by the FSS, including blocking phone numbers used in illegal lending advertisements. Starting July 22, the scope of this phone number suspension system will be expanded to cover all types of illegal lending and debt collection activities.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
