Loan Solicitors Requiring 'Certification' Under the Financial Services Act, Operations Council to Be Established (Comprehensive)

Need for Operating Council Due to Enforcement of Financial Consumer Protection Act
Loan Solicitor Registration to Be Completed by Year-End

[Asia Economy Reporter Ki Ha-young] A council for the operation of loan product sales agents and intermediaries will be established following the enforcement of the Financial Consumer Protection Act (FCPA). This council will discuss and manage matters related to more than 40,000 loan solicitors in the credit industry.

According to the Credit Finance Association on the 13th, regulations for a consultative body to discuss the operation and management of loan product sales agents and intermediaries under the FCPA will be prepared. The Credit Finance Association plans to collect industry opinions by the end of this month.

With the end of the FCPA grace period on the 25th of last month, loan solicitors must now register with the Financial Supervisory Service and each financial sector association to conduct business. They must also undergo education and evaluation for qualification certification. The Credit Finance Association Training Institute, Korea Financial Training Institute, and Insurance Training Institute conduct registration education for qualification certification, and the Credit Finance Association Research Institute conducts evaluations for those who have completed the new registration education course.

Loan Solicitor Operation Council... Discussion on Business Operations and Budgeting

The association explained that with the enforcement of the FCPA, new qualification standards for loan solicitors have been established, and loan solicitors are now legally subject to supervision, making the establishment of an operation council necessary for discussion. In the credit card sector, such an operation council is already in place.

The operation council will be composed of up to 20 members, including the chairperson. Considering the number of loan solicitors registered with the Credit Finance Association, executives responsible for loan product sales agents and intermediaries from companies such as Shinhan, Samsung, Woori Card, Hyundai, KB, NH Nonghyup, Lotte, Meritz, Woori Financial, BNK, and JB Woori Capital will participate as members. Major discussion topics include the operation of tasks related to loan product sales agents and intermediaries, the establishment and revision of regulations, and matters concerning budgeting and settlement.

The Credit Finance Association estimates that the number of loan solicitors in the industry will be at least 40,000. This figure includes not only general loan product solicitors but also lease and installment solicitors such as car dealers. Currently, due to the longer-than-expected inquiry period for disqualification checks among registration requirements, the financial authorities have extended the registration application deadline for existing loan solicitors with the association until the 24th. They plan to complete registration for all applicants within this year.

An industry official said, "With the enforcement of the FCPA, supervision of loan solicitors has begun, making an operation council necessary to discuss these matters," adding, "So far, 80-90% of loan solicitors have applied for registration, and it is expected that all will be registered by the end of the year."

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