The Philippine Embassy, through its Migrant Workers Office (MWO) in Korea, wishes to inform all Overseas Filipino Workers of a recently uncovered large-scale illegal loan-sharking operation that victimized more than 9,000 foreign workers across the country.

According to police reports, the group operated an unregistered lending business that issued illegal loans amounting to over 16.2 billion KRW, with excessive annual interest rates reaching up to 154%. The syndicate specifically targeted foreign workers unfamiliar with Korea’s financial system.

Modus Operandi Reported:

• Offering small loans ranging from 100,000 to 500,000 KRW
• Deducting high “fees” before releasing the money
• Imposing excessively high monthly payments
• Issuing threats such as salary suspension, reporting to immigration, and harassment for delayed payments
• Filing fake installment agreements in court to force repayment 

The Korean authorities have arrested several members of the group, while the main suspect is being pursued internationally.

In light of these developments, we strongly advise the Filipino community to exercise extreme caution:

1. Avoid Borrowing from Unregistered Lenders. Never transact with individuals or groups offering quick cash loans through messaging apps, social media, or referrals without proper documentation.

2. Verify Before You Borrow. Legitimate financial institutions in Korea (banks, cooperatives, microfinance programs) do not charge excessive interest or require withholding of personal documents.

3. Do Not Share Personal Information. Protect your ARC details, employer information, bank accounts, and contracts. These can be misused for threats or harassment.

4. Report Suspicious Activities. If you or someone you know is being threatened or has fallen victim to illegal lending schemes, please contact:

• Philippine Embassy – 82.2 7882100/ 82.27882101
• MWO Korea – Assistance to Nationals Section – (82.2) 3785- 3634
• OWWA Korea - (82.2) 3785- 3635
• Nearest Police Station (dial 112)
• Interpretation assistance is available.

5. Seek Help Immediately. Do not wait until threats escalate. Early reporting can prevent further harm and help authorities take action.

The Philippine Embassy through the MWO and OWWA Korea remain committed to safeguarding the welfare of OFWs and are closely coordinating with Korean authorities on matters affecting the safety and protection of our workers.

Please share this advisory with fellow Filipinos in your workplace and community.