Consumer Agency Reports Surge in Financial Consumer Inquiries... Smishing and Investment Losses Predominate

Analysis Results of 52,484 Consumer Consultations

[Asia Economy Reporter Lim Chun-han] Recently, as interest in individual investment has increased, consumer complaints related to financial products surged last month.

On the 21st, the Korea Consumer Agency announced that the number of consumer consultations received by the 1372 Consumer Counseling Center last month was 52,484, an 18.5% increase compared to March of last year. Compared to the previous month, it increased by 22.8%. Looking at the types of consultations, consumer consultations related to various financial products increased by 222.5% compared to last year, recording the highest growth rate. This was followed by stocks (80.8%) and various interior facilities (46.6%).

The Consumer Agency explained that many inquiries about financial product consultations were related to smishing messages such as "overseas payment approval" sent from international caller numbers. In the case of stocks, complaints mainly involved investment losses caused by system failures during transactions through securities companies' Mobile Trading Services (MTS).

Compared to the previous month, consultations related to shoes and sneakers increased by 85.6%, showing the largest growth, followed by casual pants (80.7%) and various interior facilities (61.9%). This is believed to be due to increased demand for spring clothing and interior items.

The item with the highest number of consultations last month was similar investment advisory services (2,316 cases), followed by mobile phone services and health clubs with 1,945 and 1,365 cases respectively, ranking second and third. Similar investment advisory services refer to businesses that provide paid investment advice to unspecified many people through social network services (SNS), internet broadcasts, text messages, blogs, and so on.

The Consumer Agency stated, "Analyzing in 10-day units, consultations related to similar investment advisory services were the most frequent from early to late last month," adding, "Most of these consultations were about contract cancellations and refunds."

Looking at the reasons for all consultations, quality and after-sales service (A/S) related consultations accounted for 25.4%, the highest proportion, followed by contract cancellation and penalty fees (23%), and contract non-fulfillment (12.9%). Among consumers who applied for consultations, those in their 40s accounted for 27.8%, while those in their 30s and 50s accounted for 27% and 21%, respectively.

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