Financial Complaints Increase by 6% in First Half of This Year... Bank Complaints Decrease but Voice Phishing Rises Sharply

Non-life Insurance, Financial Investment, and Non-bank Sectors Increase While Banks and Life Insurance Decrease
Voice Phishing Up 85% Compared to Same Period Last Year

[Asia Economy Reporter Song Hwajeong] Financial complaints in the first half of this year increased by 5.9% compared to the same period last year. Complaints in the non-life insurance, financial investment, and non-bank sectors increased, while those in life insurance and banking decreased. Although overall complaints in banking decreased, voice phishing complaints surged significantly.

According to the "2022 First Half Financial Complaints Trends" report released by the Financial Supervisory Service on the 14th, the total number of financial complaints received in the first half of this year was 44,333, a 5.9% increase compared to the same period last year.

By sector, non-life insurance increased by 2,149 cases, financial investment by 1,104 cases, and non-bank by 347 cases. Non-life insurance complaints rose due to claims related to cataract surgery under actual expense insurance, and financial investment complaints increased because securities firms experienced system failures on the day of public stock listings, leading to demands for compensation. Conversely, life insurance and banking complaints decreased by 743 and 397 cases respectively. The sectoral proportions were non-life insurance (40.1%), life insurance (19.6%), small and low-income (16.2%), financial investment (12.7%), and banking (11.4%) in that order.

Banking complaints totaled 5,039 cases, a 7.3% decrease compared to the same period last year. Although complaints related to credit and voice phishing increased significantly, other types of complaints generally decreased, resulting in an overall reduction. Credit-related complaints increased by 12.8%, and voice phishing complaints surged by 84.9%. By type, credit-related complaints accounted for the largest share at 30.3%, followed by internal control and system issues (19.6%), voice phishing (18.0%), and deposits and savings (14.5%).

Complaints from the small and low-income sector reached 7,200 cases, a 5.1% increase. Complaints against credit card companies rose by 27%, while those related to loan businesses, credit information, and installment finance decreased.

Life insurance complaints totaled 8,684 cases, a 7.9% decrease. Most complaint types in the life insurance sector, including insurance solicitation and insurance payment calculation and disbursement, declined. By type, insurance solicitation complaints accounted for the largest share at 52.7%, followed by insurance payment calculation and disbursement (17.0%) and exemption and liability decisions (13.0%).

Non-life insurance complaints increased by 13.7% to 17,798 cases. Complaints related to insurance payment calculation and disbursement, as well as exemption and liability decisions, increased, whereas those related to contract formation and cancellation, insurance solicitation, and violations of disclosure and notification obligations decreased. By type, insurance payment calculation and disbursement accounted for 54.6%, exemption and liability decisions 12.3%, contract formation and cancellation 6.8%, and insurance solicitation 4.8%.

Financial investment complaints rose by 24.5% to 5,612 cases. Complaints against securities companies and investment advisory firms increased, while those against real estate trust companies and asset management firms decreased. Complaints against securities companies numbered 3,625, a 29.7% increase. Complaints related to securities firms' Home Trading System (HTS) and Mobile Trading System (MTS) failures caused internal control and system failure complaints to surge by 106.4% compared to the same period last year. Complaints related to funds, stock trading, and trusts decreased. By type, internal control and system issues accounted for 62.8%, stock trading 4.9%, funds 2.7%, derivatives 1.0%, and trusts 0.2%.

The number of financial complaints processed in the first half of this year was 40,734, a 2.0% decrease compared to the same period last year.

The Financial Supervisory Service plans to strengthen publicity to prevent damages related to voice phishing accounts, as voice phishing complaints reached 908 cases, an 84.9% increase compared to the same period last year. A Financial Supervisory Service official stated, "Voice phishing criminals transfer money to ordinary people's accounts to steal funds, and these accounts are then suspended, which mainly causes complaints," adding, "When new voice phishing methods emerge, we will promptly provide related information through consumer alerts to proactively prevent consumer damages."

Additionally, complaints related to installment objection rights and actual expense insurance will be handled promptly. Complaints asserting installment objection rights related to similar investment advisory firms and online transactions increased by 1,053.8% to 150 cases compared to 13 cases in the same period last year. As many issues related to actual expense insurance were received, complaints related to insurance payment increased by 30.4%. A Financial Supervisory Service official explained, "We will review measures to handle complaints related to installment objection rights to facilitate swift dispute resolution," and added, "By increasing complaint handling personnel and establishing processing standards by dispute type, we will enhance complaint handling efficiency and respond to actual expense insurance disputes."

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