Reduced Processing Time for Financial Company Inspections and Sanctions, Incentives for Corrective Efforts

[Asia Economy Reporter Kim Hyo-jin] The Financial Services Commission announced on the 28th a revision to the 'Regulations on Inspection and Sanctions of Financial Institutions' to protect the rights and interests of financial companies subject to inspection and sanctions.

In response to criticism that the period from the end of inspection to the notification of results takes too long, causing ongoing management uncertainty for financial companies, the financial authorities decided to set a standard processing period from the end of inspection to the notification of results according to the type of inspection.

Financial Services Commission

The financial authorities currently notify financial companies one week in advance before starting all on-site inspections, but in the case of comprehensive inspections, they plan to extend the advance notice period to one month to allow financial companies sufficient time to prepare for the inspection.

Additionally, for cases corresponding to the sanction level of 'caution,' such as minor violations due to lack of legal knowledge or simple negligence, instead of imposing uniform sanctions, a sanction substitution measure will be introduced that exempts sanctions on the condition of completing compliance education.

Furthermore, if financial companies and their executives and employees make efforts to voluntarily correct illegal acts, this will be reflected when determining the level of sanctions, and incentives such as reductions in fines or penalties will be provided.

These measures will be implemented in March after approval by the Financial Services Commission.

This content was produced with the assistance of AI translation services.