The opposition Democratic Party is expected to propose a bill this week to amend the Lending Act to increase the minimum equity requirement for lenders to register from 10 million won ($7,320) to 300 million won ($220,000) and cancel all contracts with illegal lenders.

This would pave the way for victims of illegal loans to recover not only interest but also principal through civil lawsuits. The ruling People's Power Party is also preparing a bill that would require financial authorities to closely monitor loan brokerage platforms and block online advertising of illegal lending activities.

In South Korea, one can now obtain a loan business license by simply proving that one has 10 million won ($7,320) in an account, attending an 18-hour class and setting up a paper office…

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