FSS launches on-site inspections of private lenders and trains consumer protection experts with financial holding companies
The Financial Supervisory Service has begun on-site inspections of private lenders and online loan brokerage websites. 6month 5day, the Korea Banking Institute and 8major financial holding companies signed an agreement to train financial consumer protection experts. Meanwhile, the FSS reduced the surcharge related to Hong Kong ELS from 1trillion won 4,000hundred million won to 6,000hundred million won.
The Financial Supervisory Service has begun on-site inspections of private lenders and online loan brokerage websites. The FSS said the inspections are intended to eradicate predatory financial practices targeting low-income and vulnerable groups. The on-site inspections will cover the business locations of major private lenders and online platforms.
The FSS said the on-site inspections will focus on checking illegal usurious lending, excessive fees, and unclear contract terms. The FSS stated that it would take strict action if violations are identified. The on-site inspections will be conducted sequentially across multiple regions and businesses.
The Financial Supervisory Service signed a memorandum of understanding with the Korea Banking Institute on 6month 5day, with the participation of 8major financial holding companies. The purpose of the agreement is to train financial consumer protection experts. The participating institutions agreed to cooperate through curriculum development and personnel exchanges.
The Financial Supervisory Service 6month 4reduced the proposed fine decision related to Hong Kong ELS on day. It lowered the fine from the existing 1trillion 4,000hundred million won to 6,000won. The Financial Supervisory Service said it reflected the grounds for the reduction in accordance with administrative procedures.
The Financial Supervisory Service is simultaneously conducting on-site inspections, training experts, and reducing administrative sanctions. These measures appear to be administrative activities targeting all of the lending industry, online platforms, and financial holding companies. The Financial Supervisory Service plans to disclose the inspection results and the progress of internal training sequentially in the future.
The sectors concerned may face corrective orders and the imposition of fines based on the inspection results. Financial holding companies have disclosed that they are securing consumer-protection specialists and participating in training. Related companies and platforms may make additional disclosures in response to requests from the Financial Supervisory Service.