Reasons for Proposal
The current Act prescribes that a person other than a credit service provider or a credit financial institution shall not advertise regarding a credit business, and a person other than a loan broker or a loan solicitor shall not advertise regarding a loan brokerage business
Despite such provisions, illegal loan advertising through distribution of leaflets, business cards, etc., by an unregistered credit service provider or loan broker and resulting damages to the working class continues, such that it has been pointed out that there is a need to strengthen management and supervision of illegal loan advertising and provide sanctions for overlooking illegal loan advertising in addition to conducting illegal loan advertising.
Therefore, this proposal aims to prescribe that a person who knowingly produces, supplies, publishes, and/or distributes illegal loans and/or loan brokerage advertisements shall be punished by imprisonment with labor for not more than two (2) years or by a fine not exceeding 20 million won, to encourage the sound development of the credit business and protect finance users (Article 9-2 (3) and Article 19 (3), newly inserted).
Major Provisions
Prohibition against Advertisements for Credit Business (Article 9-2)
