The current Act provides that in addition to credit business, the interest limitation for transactions between persons shall be 25% per annum, except that there is no limitation for interest on a loan, the principal of which is less than 100,000 won.
Recently, however, a high-interest small loan called a “deposit by proxy” is especially prevalent on-line among teenagers, gaining attention as a social problem. The maximum interest rate of this deposit by proxy for a short loan period of within 10 days approaches maximum 50%, and high default interest rates are charged by the hour. Such practice is a matter requiring urgent attention and corrective measures in that a virtual high-interest moneylending business is thriving at the expense of teenagers and vulnerable individuals by exploiting a legal loophole.
Accordingly, the Act aims to promote sound and stable economic activities for the public as well as minors and realize economic justice by applying the interest limitation per annum even to a transaction between persons, the amount of which is less than100,000 won (Article 2 (5) deleted).

Apply the maximum interest rate to the interest on a loan, the principal of which is less than 100,000 won by deleting the provision for the inapplicability of the maximum interest rate to the interest on a loan, the principal of which is less than 100,000 won (Article 2 (5) deleted)