Exclusive Obligation for Loan Recruiters to One Company Will Be Abolished

Guaranteeing Consumer Choice
Regulatory Reform Committee Decides to Revise 109 Regulations Following 'Reexamination Regulatory Review' Results

The 'exclusive obligation' requiring loan solicitors to handle loan products from only one financial company will be abolished. Regulations will be eased to allow universities to autonomously install outdoor advertisements. The mandatory placement of sports instructors at golf courses will also be eliminated.

On the 16th, the Regulatory Reform Committee of the Office for Government Policy Coordination reviewed the results of the 'Regulation Reassessment' and resolved to revise a total of 109 regulations. This decision was made after in-depth review of unnecessary regulations based on feedback from the public, the Korea Employers Federation, and the Korea Federation of SMEs.

First, the exclusive obligation for loan solicitors to work with only one company will be removed. This obligation required loan solicitors to sell products from only one financial institution. It had been an obstacle to loan solicitation platforms that allow consumers to compare loan conditions from multiple financial companies and select their desired product.

Especially since the system was introduced in 2021, loan interest rates have risen sharply over the past three years, increasing the financial burden on ordinary citizens. Therefore, the need to enable consumers to compare and choose products from multiple financial companies through loan solicitors has grown. Accordingly, the Regulatory Reform Committee decided to abolish the exclusive obligation to enhance consumer convenience and promote competition among financial companies.

Regulations will also be relaxed to allow outdoor advertisements within university campuses. The Regulatory Reform Committee judged that displaying outdoor advertisements within universities, without damaging their public nature, can contribute not only to the universities' own revenue but also to the expansion of university finances. The mandatory placement of sports instructors at golf courses will be removed as well, since most golf courses have low demand and necessity for sports instructors.

Additionally, the committee recommended the following: abolishing the 'education facility securing requirement' for security business permits and changes; allowing advertisements on the front of commercial vehicles such as delivery trucks; improving the designation process of software promotion complexes by adopting a pre-designation and post-adjustment system; relaxing workplace sports facilities to require at least one type; permitting resort condominium businesses within educational environment zones and bathhouse businesses within youth training districts; unifying guidelines and forms to prevent confusion at construction sites; and narrowing the scope of emergency suspension orders for violations related to mobile phone subsidies.

The Office for Government Policy Coordination plans to accelerate the revision of laws through comprehensive amendments to enforcement decrees, continuously monitor and inspect the progress of each ministry, and reflect these efforts in the government performance evaluation (regulatory reform sector). Kim Jong-seok, chairman of the Regulatory Reform Committee, urged, “Each ministry should promptly implement follow-up measures so that citizens and businesses can feel the effects of regulatory improvements as soon as possible.”

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