On Jun. 30, SK GVT amended rules re credit business registration.
SK GVT published amendments to Act on registration of credit business and protection of finance users, replacing the terms unregistered lender and unregistered loan broker with the terms illegal loan shark and illegal loan broker to clarify, underscore illegality.
Outline of Amendments
Illegal loan agreements involving anti-social conduct may be rendered null and void, including principal and interest; additionally, nullification applies to contracts involving acts violating human dignity and excessively high interest rates deemed anti-social.
Minimum capital requirement for credit service providers registering with city or provincial governors has been increased from KRW 10mn won to KRW 100mn.
New KRW 30mn capital requirement introduced for loan brokers; in addition, credit business and loan brokerage business obligated to maintain required capital levels.
The maximum penalty for illegal private lending was raised from five years imprisonment or KRW 50mn fine to ten years imprisonment or KRW 500mn fine.
Effectiveness
Amendments effective Jul. 22, 2025.
Regulators
SK GVT
Entity Types
CNSM; MSB
Reference
PR, Reg, Trsl, 6/30/2025; ESG
Functions
Compliance; Human Rights; Legal; Product Administration; Registration/Licensing; Social
