A warning from Philippine officials in Seoul has drawn fresh attention to a sweeping loan-sharking network that investigators say preyed on thousands of foreigners working in South Korea. Embassy officials revealed that the scheme circulated illegal loans amounting to more than 16.2 billion KRW and charged borrowers interest rates that climbed as high as 154% annually.
Authorities in Korea reported that the operation functioned without any form of registration and deliberately approached migrant workers who were unfamiliar with local financial rules. Police said more than 9,000 foreign nationals were deceived through tactics that included offering small amounts of cash, demanding hefty deductions before releasing funds, and collecting unreasonably high monthly payments.
Investigators also documented threats used against those who struggled to pay. Workers were warned of possible salary suspensions and even immigration complaints. Cases were also filed in court using fabricated installment agreements to pressure victims into settling the alleged debts. Officers confirmed that several suspects have been detained, while the individual believed to be leading the group is now the subject of an international manhunt.
Embassy officials emphasized that overseas Filipinos should be wary of anyone offering quick loans through messaging apps, informal referrals, or social media channels. They stressed that legitimate banks and financial programs in Korea do not impose excessive charges or require borrowers to surrender personal documents.
The advisory also reminded OFWs to protect sensitive information such as ARC numbers, employer details, bank accounts, and employment contracts, noting that these can be exploited for intimidation or harassment. Those who are approached by unregistered lenders or experience threats are urged to report the matter immediately to the Philippine Embassy, the Migrant Workers Office, OWWA Korea, or the nearest police station via 112. Interpretation assistance is available.
Officials said the Embassy, MWO, and OWWA Korea continue coordinating with Korean authorities to ensure the safety and protection of Filipino workers.
