Seven Financial Industry Associations Voluntarily Commit to Consumer Protection Ahead of the Financial Consumer Protection Act

Commitment to Practicing Consumer-Centered Financial Management and More

Participants are taking a commemorative photo ahead of the seminar on the 24th. (From left) Park Jae-sik, President of the Korea Federation of Savings Banks; Jung Ji-won, President of the General Insurance Association of Korea; Jung Hee-soo, President of the Life Insurance Association of Korea; Kim Kwang-soo, Chairman of the Korea Federation of Banks; Yoon Kwan-seok, Chairman of the National Assembly's Political Affairs Committee; Na Jae-chul, President of the Korea Financial Investment Association; Kim Joo-hyun, President of the Korea Credit Finance Association; Lim Seung-bo, President of the Korea Asset Management Association.

[Asia Economy Reporter Park Sun-mi] Ahead of the enforcement of the Financial Consumer Protection Act (FCPA) on the 25th of next month, seven financial sector associations jointly pledged to strengthen consumer protection on behalf of each financial industry sector.

According to the Korea Federation of Banks on the 24th, the joint voluntary pledge and seminar held that afternoon was attended by the chairman of the Korea Federation of Banks, Kim Kwang-soo, as well as the chairmen of seven financial industry associations including the Korea Financial Investment Association, Korea Life Insurance Association, Korea Non-life Insurance Association, Korea Credit Finance Association, Korea Federation of Savings Banks, and Korea Asset Management Association, along with the chairman of the National Assembly’s Political Affairs Committee and executives of financial companies.

At this event, each association chairman resolved to strengthen consumer protection to meet the public’s expectations for strict compliance with the FCPA and customer-centric management. They pledged to ▲ lead sustainable management contributing to the development of the national economy and financial industry, ▲ always practice consumer-centric management from the customer’s perspective, and ▲ take the lead in protecting financial consumers through compliance management.

Chairman Kim said in his greeting, "Although the FCPA, which will be enforced in March this year, imposes a detailed consumer protection framework across all areas of financial transactions, increasing the burden on financial companies, in the long term, it will serve as a foundation for sustainable growth by enhancing the trust in the financial industry through the eradication of incomplete sales."

Yoon Kwan-seok, chairman of the Political Affairs Committee, also encouraged, saying, "With the development of financial engineering and ICT, the types of financial products and sales channels are diversifying and expanding, and financial consumers are becoming smarter and more sensitive to consumer sovereignty, which is the recent trend. The financial industry, on the verge of the FCPA enforcement, must focus on gaining market trust by voluntarily and proactively preparing consumer damage relief and protection measures as an advanced service industry to enable continuous growth."

Following the voluntary pledge event, a seminar was held presenting financial companies’ consumer protection system establishment plans and best practices in preparation for the enforcement of the FCPA.

Attorney Koo Bong-seok of Kim & Chang Law Firm explained the legislative intent and key contents of the FCPA, the impact of the FCPA enforcement on financial companies’ financial product sales operations, compliance methods for sales regulation, and the establishment of internal control standards to build a financial consumer protection system. Deputy General Manager Lee Jung-joo of Shinhan Bank presented the progress of the FCPA enforcement preparation task force (TF) operation, the introduction of the Financial Consumer Protection Officer and Shinhan Ombudsman system, and other consumer protection enhancement measures.

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