New FSS Chief to Meet Bank CEOs, Expected to Urge "Consumer Protection as Top Priority"

Lee Chanjin to Hold Introductory Meeting with Bank CEOs on the 28th
Consumer Protection Expected to Be Top Priority

Lee Chanjin, Governor of the Financial Supervisory Service, is delivering his inaugural speech at the inauguration ceremony held on the 14th at the Financial Supervisory Service in Yeouido, Seoul. Photo by Yonhap News

Lee Chanjin, the newly appointed Governor of the Financial Supervisory Service, is scheduled to meet with the CEOs of major banks for the first time since taking office. As he has emphasized "consumer protection" from his very first meeting, it is expected that he will urge the heads of major banks to strengthen their efforts in this area as well.

According to the financial industry on August 21, Governor Lee will hold a meeting with banking sector CEOs at the Korea Federation of Banks in Myeong-dong, Seoul, on the 28th. Starting with the banking sector, he plans to meet sequentially with the CEOs of the insurance and financial investment industries.

Having officially begun his term this week, Governor Lee is expected to use the upcoming meeting with bank CEOs as an introductory session to listen to the industry’s current situation and opinions. He is also likely to reiterate his call for strengthening consumer protection in the financial sector, as emphasized immediately after taking office.

At his first executive meeting held on the 20th, Governor Lee stressed, "In all future work, we must keep consumer protection in mind." In his inaugural speech on the 14th, he also announced plans to significantly strengthen financial consumer protection.

He stated, "After taking office, I will focus on innovating the work system of the Consumer Protection Office and enhancing its professionalism and efficiency," adding, "We will significantly strengthen the monitoring function regarding consumer protection in the financial sector, and, when necessary, actively utilize supervisory and inspection functions to prevent consumer damage."

Governor Lee’s remarks are in line with President Lee Jaemyung’s repeated emphasis on strengthening consumer protection, which he has advocated even before taking office. During his presidential campaign, President Lee pledged to introduce unilateral binding force. This system requires financial companies to comply unconditionally with resolutions proposed by authorities in the event of disputes between financial institutions and consumers, provided the consumer agrees. However, there are concerns within the financial sector that some consumers may abuse this system.

The Financial Supervisory Service previously established the "Financial Consumer Protection Evaluation Committee," composed mainly of private experts, and reported to the National Planning Committee on measures such as introducing unilateral binding force in dispute mediation.

In this regard, some speculate that the government may strengthen consumer protection by separating the Consumer Protection Office from the Financial Supervisory Service, establishing a new Consumer Protection Agency, and granting it additional authority. There are also reports in the market that Governor Lee hinted at such organizational restructuring during the executive meeting held the previous day.

However, a Financial Supervisory Service official clarified, "The FSS has not planned to announce any organizational restructuring to separate the Consumer Protection Office or any executive reshuffle," adding, "Any organizational restructuring is a matter being pursued by the Presidential Office and others."

Separately from organizational restructuring, it has also been confirmed that strengthening financial consumer protection is the top priority under the new governor’s leadership. The official explained, "We plan to improve the system to strengthen our market monitoring role, making consumer protection the highest value and enhancing oversight of all processes from the design to the sale of financial products."

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