Lent 44 million won, collected 76.6 million won

This image is unrelated to the article. [Getty Images Bank]
This image is unrelated to the article. [Getty Images Bank]

A district office civil servant who lent tens of millions of won to an acquaintance and collected annual interest of 60 percent — three times the legal maximum rate — has been referred to prosecutors.

The Daegu Seongseo Police Station announced Tuesday it had booked without detention and referred to prosecutors a civil servant in his 30s, identified only as A, who works at a local district office, on charges of violating the Act on Registration of Credit Business and Protection of Finance Users.

A is accused of lending a total of about 44 million won to an acquaintance, identified as B, in multiple installments between September 2023 and January this year, then collecting 76.6 million won ($55,300) in principal and interest at an annual rate of 60 percent.

The current legal maximum annual interest rate is 20 percent.

According to the investigation, A drew up no loan agreements, instead lending money whenever B requested it and unilaterally setting the interest rate each time.

Police concluded their investigation and transferred A to prosecutors without placing him in detention.

"We will strictly investigate illegal high-interest lending that targets people in financially vulnerable situations," a police official said.


jshan@heraldcorp.com