FSS to Hold "2025 Nationwide Roadshow for Loan Companies"

Starting in Daegu on December 11
Followed by Gwangju, Busan, and Seoul
Guidance on Compliance Requirements
Strengthening Supervisory Capabilities of Local Government Officials

The Financial Supervisory Service announced on December 11 that it will hold a "nationwide roadshow" in collaboration with local governments and the Korea Loan Finance Association to raise compliance awareness among loan companies across the country.

The roadshow will begin in Daegu and continue in Gwangju, Busan, and Seoul, taking place in four major cities. Local loan companies (registered with the Financial Services Commission or local governments) and local government officials in charge of loan businesses will attend each session.

The sessions will cover: ▲cases of legal violations, ▲the Individual Debtor Protection Act, and ▲the Loan Business Act. In the legal violations segment, the roadshow will provide guidance on regulations that loan companies must follow and share key cases of regulatory breaches identified by the Financial Supervisory Service during past inspections.

Regarding the Individual Debtor Protection Act, the main legal provisions will be explained, with a focus on important considerations for protecting borrowers' rights during debt collection work.

The Loan Business Act session will introduce key points of the revised law. In particular, the roadshow will highlight recent cases of illegal business practices by local loan companies in connection with online loan brokerage sites and illegal private lenders, emphasizing that anti-social loan contracts (including extremely high-interest contracts) are null and void. It will also be stressed that penalties for illegal private lending have been strengthened and that any interest agreements in such cases are invalidated.

The Financial Supervisory Service plans to deliver important compliance reminders and outline the authorities' efforts to eradicate crimes that harm the public interest. Through these measures, the agency aims to raise awareness within the loan industry and strengthen the supervisory capabilities of local government officials overseeing loan businesses.

The Financial Supervisory Service stated, "We will continue to provide a variety of educational opportunities for the loan industry, such as the nationwide roadshow," adding, "We will continuously monitor compliance with regulations in the industry and enforce a zero-tolerance policy against business practices that harm the public interest."

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