Private Lenders in South Korea suspended for 6 months

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February 19, 2012

SEOUL - Major private money lenders in South Korea were ordered Thursday to suspend their operations for six months for reaping illegal profits through "unfair" interest rates, officials said.

Seoul's Gangnam Ward office informed four private lenders, including market leaders A&P Financial and Sanwa Money, to halt their business operations between March 5 and September 4, according to industry officials.

The move comes after the local financial regulator vowed to overhaul the private money market amid growing public outcry over its notoriously high interest rates.