Regulators discuss fast-track removal of 'social media shaming' debt collection posts

South Korea's financial regulators are moving to expedite the removal of illegal debt collection content from social media platforms.

The Financial Supervisory Service (FSS) and the Korea Communications Standards Commission (KCSC) are reportedly discussing a "fast-track" system to swiftly delete posts that illegally expose personal information of debtors. This issue arises from predatory lending operations that often use encrypted messaging apps like Telegram and open KakaoTalk chats to solicit clients.

When borrowers fail to meet repayment deadlines, these illegal lenders resort to posting sensitive personal details of the debtors on social media sites. This tactic aims to shame and pressure individuals into paying, causing significant distress and potential harm.

The current system for addressing these violations is cumbersome. The FSS must individually request the removal of each offending post from various social media platforms, a process that can be time-consuming and inefficient, allowing the harmful content to remain visible for extended periods.