Korea Credit Boss Looks To Listing on Stock Market

Huh Si-ku started Korea Credit Inc. in 1998 after 13 years working at a commercial bank. He predicted that there will be a day when money lending will become an established business that can exceed commercial banks in operation. "When operations like ours become firmly established in the mainstream, smaller borrowers with less than perfect credit records will be helped a great deal," he said.

JAI: How is the company operated?

Huh: We make loans with automobiles or residential lease contracts as collateral. We also give out unsecured loans with 5 to 7 percent interest per month. We don't charge overdue interest above that.

JAI: There has been a lot of pressure socially on private money lenders.

Huh: We had a tax audit recently ourselves resulting in a moderate assessment. We thought about closing down the business, but it is our belief that we are serving a public interest.

JAI: Do you believe this type of business will become established in Korea?

Huh: Some lenders in Japan have grown larger than commercial banks, and there are even companies registered on the stock market. I believe all that is possible in this country, too.

JAI: What is your view on the proposed law to regulate private money lending?

Huh: I believe it is a good thing. But the government must make sure violators are punished. It will make the legitimate operators become competitive.

JAI: What are your difficulties?

Huh: We should be able to expense overdue loans. We operate on high risk and are restricted in many ways on collection. Without being able to charge expense for delinquent loans, we will be forced to charge higher interest.

by Suh Kyoung-ho