Kim Byung-hwan, Chairman of the Financial Services Commission, announced on the 23rd that he will swiftly amend subordinate regulations such as enforcement ordinances to ensure the amended Lending Business Act is implemented smoothly.
Chairman Kim made this statement during a field meeting titled “Eradicating Illegal Private Financing and Promoting a Healthy Lending Market” held at the Personal Rehabilitation and Bankruptcy Comprehensive Support Center of the Korea Legal Aid Corporation in Seocho-gu, Seoul.
He stated, “The amended Lending Business Act, which was passed by the National Assembly at the end of last year, is set to be implemented in July,” and “We will expedite the preparation of the enforcement ordinance of the Lending Business Act, which includes detailed criteria for nullifying ultra-high interest lending contracts and registration requirements for online lending brokerage sites.”
He also requested that, since the recent amendment of the Lending Business Act provides grounds for nullifying anti-social lending contracts and prohibits interest collection by illegal private lenders, the financial authorities, investigative agencies, and the Legal Aid Corporation strengthen information sharing and cooperation.
Additionally, he mentioned that they would further enhance support measures for victims of illegal private financing through the ongoing debtor representative system and lawsuits for nullification.
In response to concerns that the amendment to the Lending Business Act could reduce funding for the low-income and vulnerable groups, he stated that they would devise countermeasures.
Chairman Kim also remarked, “To expand funding provided to low-income and vulnerable groups, we will seek ways to promote excellent money lenders by improving their funding conditions,” and “We will prepare a comprehensive support plan for low-income finance by February.”