Hana Financial Investment Holds 'Financial Consumer Protection Forum'

Analysis of Systems and Cases on Financial Consumer Protection in the Untact Era

Lee Jin-guk, CEO of Hana Financial Investment, is delivering a congratulatory speech at the 'Financial Consumer Protection Forum'.

[Asia Economy Reporter Eunmo Koo] Hana Financial Investment held the ‘2020 Hana Financial Investment Financial Consumer Protection Forum’ on the morning of the 8th at the Yeouido Federation of Korean Industries Conference Center, broadcasting live via its official YouTube channel, ‘HanaTV’.

The forum, held under the theme of ‘Financial Consumer Protection in the Untact Era,’ was divided into three detailed topics: the enforcement of the Financial Consumer Protection Act and key information and systems consumers should know, types and prevention of financial fraud, and major damage cases related to financial investment products.

Dr. Hee-Soo Jung of Hana Financial Research Institute, who presented the first session titled ‘Consumer Protection System after the Enforcement of the Financial Consumer Act,’ discussed the main contents of the Financial Consumer Protection Act scheduled to be enforced in March next year, various newly established protection systems for financial consumers, and their implications.

In the second session, Professor Dong-Jin Choi of the Korea Financial Investment Association examined the factors behind the increase in Ontact financial fraud in the Untact era, discussing the financial environment during the COVID-19 pandemic, types of financial fraud, and prevention methods under the detailed topic ‘Various Types of Financial Fraud and Prevention.’

In the final session, under the detailed topic ‘Precautions and Damage Cases in Financial Investment Product Transactions,’ Lawyer Seung-Jae Oh of Hana Financial Investment’s Consumer Protection Office introduced precautions that financial consumers should take during transactions and major damage cases, based on his experience reviewing product development and sales processes, post-sales monitoring, and various dispute cases.

Jin-Guk Lee, CEO of Hana Financial Investment, stated in his opening remarks, “I hope this forum becomes a public platform to discuss ways for financial consumers and financial companies to grow together as mutually beneficial partners beyond the massive change triggered by the COVID-19 ‘Untact era.’ Hana Financial Investment will also take this forum as an opportunity to re-examine the company’s overall internal control system and further strengthen consumer protection capabilities.”

Since the end of last year, Hana Financial Investment has appointed an independent Chief Officer for Financial Consumer Protection and has reorganized various systems to strengthen consumer protection. It operates a continuous inspection process to minimize risks for financial consumers investing in financial investment products, focusing on both preemptive and post-transaction consumer protection.

In particular, from the early stages of product development, the dedicated Consumer Protection Office conducts two rounds of prior reviews to ensure that product structures and prospectuses do not disadvantage investors and that essential information for investors is clearly included. Furthermore, even at the product committee resolution stage, products can only be sold after obtaining unanimous agreement from the heads of the consumer protection and risk management departments.

To strengthen post-sale monitoring, a Product Supervision Team has been established to continuously check whether sold products are being managed appropriately as proposed and whether investor notifications are being smoothly conducted according to guidelines when investor notices arise.

Additionally, the weighting of consumer protection items such as customer profitability, customer management, and dispute occurrence is increased in the sales staff’s performance evaluation criteria (KPI). To listen to financial consumers’ opinions and strengthen monitoring throughout the entire process of product development, sales, and post-sales, the ‘Consumer Panel’ system is being expanded and implemented.

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