Lee Jae-myung, leader of South Korea’s main opposition Democratic Party, declared that loans exceeding legal interest rates through unlawful means are null and void, regardless of precise legal alignment.
Government Decree Sparks Backlash
On May 3, Lee posted on X, formerly Twitter, amplifying a message from a major illegal lending victim. He targeted recent cabinet approval of revisions to the loan business enforcement decree, underscoring that even principal debts surpassing 60% interest are now invalid, with the law firmly supporting victims.
The government advanced this decree through the National Assembly on April 28. Critics argue it restricts compensation for victims, shifts focus to operating sentiment centers, and inadequately addresses surging illegal loan trends and broader market changes.
Ongoing Campaign Against Predatory Lending
Officials plan a full vote on the decree in July, incorporating measures like Pokhyeang and Hyeopbang initiatives to offer alternatives for affected borrowers. Analysis indicates over 60% of high-interest illegal debts, both principal and accrued, warrant complete invalidation.
Lee has intensified his stance following initial votes. During an August gathering on water searches and voter outreach, he stated, “Expanding financial authority fosters gradual shifts toward normalizing illegal loans and directly fuels an eightfold rise in suicides.”
He further emphasized protecting victims, noting, “Without public backing, mere slogans fail; illegal lending criticism demands revolutionary safeguards for those three reasons alone.” Sources confirm his commitment to shielding financial power abuse victims.
Lee’s remarks align with prior criticisms, including at a Cheong Wa Dae event on April 30, where he addressed allied search-voting committee matters.
