Financial Supervisory Service Prepares Evaluation of Consumer Protection Practices in the Banking Sector

[Asia Economy Reporter Park Sun-mi] Financial authorities will soon conduct an evaluation of financial consumer protection practices targeting commercial banks and internet-only banks.

According to the financial sector on the 29th, the Financial Supervisory Service (FSS) recently sent official letters to some banks, including KB Kookmin Bank, Hana Bank, and KakaoBank, informing them of an upcoming investigation for the financial consumer protection practice evaluation. The financial consumer protection practice evaluation is conducted regularly every year by the FSS and serves to comprehensively assess the consumer protection capabilities of financial companies.

Although the FSS conducts this consumer protection practice evaluation annually, this year it plans to closely examine the implementation status in light of the Financial Consumer Protection Act, which came into effect on March 25. Specific evaluation items, methods, and details will be disclosed at an explanatory meeting to be held on July 1, where the banks subject to the evaluation will be convened.

However, within the industry, there are concerns about conducting the financial consumer protection practice evaluation reflecting the implementation of the Financial Consumer Protection Act, as the financial authorities have yet to establish core guideline manuals to reduce confusion in the field after the Act’s enforcement. Since the evaluation has a strong ex-post assessment nature, some voices argue that it is premature to conduct the evaluation before the Act’s implementation has fully settled.

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