[Chaos in the Geumso Act] "Initial Confusion Inevitable... Must Accept Positively"

Eunhee Kim, Head of Financial Consumer Protection Group at IBK Industrial Bank
"The Financial Consumer Protection Act has sealed the deal on the private equity fund incident. Incomplete sales will be difficult."

Eunhee Kim, Head of Financial Consumer Protection Group, IBK Industrial Bank of Korea

[Asia Economy Reporter Park Sun-mi] "Once the Financial Consumer Protection Act (FCPA) is enforced, incidents like the previous private equity fund accidents will be much harder to see. Banks that experienced private equity fund crises are now focusing on eradicating incomplete sales, and you can consider that the protective measures have been strengthened twofold or threefold."

Kim Eun-hee, Vice President in charge of the Financial Consumer Protection Group at IBK Industrial Bank (pictured), is the busiest person within the bank ahead of the FCPA enforcement on the 25th. In the past, the group head held concurrent positions, but in line with the financial market atmosphere strengthening consumer protection, the Financial Consumer Protection Group was separated and made independent directly under the bank president, and the group head evolved into a structure solely responsible for consumer protection.

Vice President Kim said, "I am responsible for establishing policies related to consumer protection and overall supervision, including monitoring all financial transactions for consumer protection, responding to complaints, and overseeing financial fraud responses," adding, "As the chairperson of the Non-Deposit Products Committee, I also conduct thorough supervision from the product selection stage by filtering out potentially problematic products." He added, "The fact that the vice president is separated from the sales department and directly takes care of consumers means that incidents like incomplete sales can no longer occur within the bank."

He stated that after experiencing private equity fund incidents such as the Discovery Fund case, the awareness of consumer protection among banks and employees changed 180 degrees. Furthermore, he was confident that the FCPA strengthened legal and institutional measures to prevent banks from engaging in incomplete sales of financial products.

He explained, "Consumers will face significant changes in terms of 'rights protection.' According to the newly established consumer rights such as the obligation to comply with the six major sales principles stipulated in the FCPA, the right to cancel illegal contracts, and the right to withdraw subscription, banks will sell products following enhanced sales procedures, and consumers will be guaranteed various rights specified by law."

He urged that although confusion at branches due to compliance with strengthened sales procedures in the early stages of FCPA enforcement is inevitable, it should be positively accepted by both banks and consumers as a process leading to enhanced consumer protection.

He said, "In the past, product subscription at sales counters did not take long, but as product structures become more advanced and complex, consumers need to accept that more time will be required to understand them for the time being," adding, "Whereas it used to take about 20 minutes to subscribe to a product, it will now take 40 to 50 minutes, but over time, consumers' financial knowledge will improve and branch response speed will increase, making time reduction possible."

He emphasized, "To prepare for confusion at branches due to unfamiliarity with the revised forms and sales processes in the early stages of the law's enforcement, we are regularly educating employees on the six major sales principles and key contents of the FCPA," concluding, "A new era of consumers will open."

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