Major private money lenders in Korea were ordered Thursday to suspend their operations for six months for reaping illegal profits through “unfair” interest rates, officials said Thursday.
Seoul’s Gangnam Ward office informed four private lenders, including market leaders A&P Financial and Sanwa Money, to halt their business operations between March 5 to Sept. 4, according to industry officials.
The move comes after the local financial regulator vowed to overhaul the private money market amid growing public outcry over its notoriously high interest rates.
The suspended players were charged with pocketing around 3 billion won ($2.7 billion) by imposing high interest rates even after the annual maximum interest rate was lowered to 39 percent from 44 percent.
The suspended private lenders said they are mulling filing an administrative lawsuit over the business suspension.
(Yonhap News)
