29 Arrested for Illegal Loan Sharking and Threats to Leak Nude Photos at 40,000% Interest Rates

An illegal loan shark ring that lent money at exorbitant interest rates to young adults and others in urgent need of quick cash, and then threatened to distribute nude photos and videos received as collateral, has been caught by the police.

The Busan Metropolitan Police Agency announced today (August 31) that it has apprehended 29 individuals, including 17 members of the organization led by a man in his 30s only identified as A, on charges of forming a criminal organization, violating the Loan Business Act, and violating the Act on Special Cases Concerning the Punishment of Sexual Crimes.

Police have sent 12 of the suspects, including A, to prosecutors in custody, while sending the remaining 17 without detention.

A and the others are accused of forming an illegal loan sharking criminal organization in Daegu in July 2023 and conducting illegal lending operations targeting 558 people, including young adults, using 40,501 unlawfully acquired personal information records until December 14, 2025.

They lent a total of 1.4 billion won at ultra-high interest rates reaching an annualized rate of up to 40,150 percent—such as lending 500,000 won and demanding a repayment of 1.05 million won, which included 550,000 won in interest the very next day—while demanding the victims' nude photos or videos as collateral.

When victims failed to repay the money on time, A's gang threatened to distribute the questionable photos and videos to their families and acquaintances.

One victim, suffering from debt collection, sent a photo of self-harm to A's gang, but the gang instead sent that photo to the victim's family to continue their threats.

During the crime period, the interest income amassed by A's gang alone reached 1.2 billion won.

By analyzing burner phones and dummy bank accounts used in the crime, the police tracked down three offices in Daegu and organization members operating under aliases, ultimately apprehending all 17 core members including the ringleader.

Subsequently, based on their Telegram group chat rooms and profit distribution records, police applied charges of forming a criminal organization, and additionally arrested a money launderer who concealed criminal proceeds by disguising gift certificate transactions, as well as suppliers of dummy bank accounts.

The police explained that they seized 42 million won in criminal proceeds and obtained a court decision for pre-indictment asset preservation regarding 240 million won, including vehicles and deposits.

A police official advised, "Even if you are in urgent need of quick cash, you should not use vicious illegal loan sharks that even demand nude photos, but instead use mainstream financial options such as microloans for low-income earners."

(Photo provided by Busan Metropolitan Police Agency, Yonhap News)
※ Please note: This article was translated by AI and may contain errors.