[2021 National Audit] Jeong Eun-bo "Need to Supplement Internet Bank IT Deficiencies... Must Prevent Damage"

[Asia Economy Reporter Park Sun-mi] Regarding cases where internet banks are refusing to increase jeonse loans due to insufficient computer systems, Jeong Eun-bo, Governor of the Financial Supervisory Service (FSS), stated that he will promptly ensure corrective measures are put in place.

On the 7th, Yoon Joo-kyung, a member of the People Power Party, mentioned the case of KakaoBank during the FSS audit, saying, "When a jeonse loan borrower tries to extend the loan, even though there is remaining credit limit, they are notified that they must submit a new move-in report due to the company's insufficient computer system. Tenants who cannot submit a new move-in report end up giving up the 2.1% annual jeonse loan interest rate and instead take out a credit loan at around 4% annual interest to cover the difference."

Yoon said, "Internet-only banks are attractive because of their fast non-face-to-face financial services, but it is unreasonable that, like KakaoBank, additional loans require a new move-in report due to insufficient computer systems," adding, "This is something that could be resolved if they put their minds to it, but the FSS is just standing by without addressing the problem."

He pointed out, "The FSS states that while it reviews terms and conditions when loan products are launched, it does not inspect procedures or potential future issues," emphasizing that this is an area that must be promptly improved to protect financial consumers.

In response, Governor Jeong agreed, saying, "Internet banks like KakaoBank should not cause such issues due to insufficient computer systems," and promised, "We will take measures to promptly supplement the computer systems." He added, "Furthermore, we will discuss how internet banks such as KakaoBank can provide remedial measures for consumers who have suffered damages."

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