FSS Expands Financial Company Inspections to 707 This Year... Strengthening Consumer Protection and Ad Hoc Inspections

"2026 FSS Inspection Operations Plan" Announced

The Financial Supervisory Service (FSS) will increase the number of inspections of financial companies this year to 707 and expand the number of personnel involved in inspections to a total of 28,229. While the number of regular inspections will be reduced and ad hoc inspections will be increased, the agency plans to focus on conducting special thematic inspections targeting financial consumer protection.

On March 18, the FSS announced its "2026 Operational Plan for FSS Inspection Work," outlining these details.

This year, the total number of inspections will reach 707, an increase of 8.3% compared to last year’s 653 inspections. The number of personnel assigned to inspections will also rise by 4.1%, from 27,130 last year to 28,229 this year.

The number of regular inspections will be reduced. Specifically, there will be a total of 26 regular inspections—6 for banks including financial holding companies, 9 for small and medium-sized financial institutions, 3 for financial investment firms, 7 for insurance companies, and 1 for digital/IT—one fewer than last year. The number of personnel assigned to regular inspections will be reduced by 17.7%.

In contrast, ad hoc inspections will be greatly expanded. This year, the number of ad hoc inspections will increase by 55 from last year, reaching 681 in total. This includes 79 inspections for banks including financial holding companies, 99 for small and medium-sized financial institutions, 156 for financial investment firms, and 122 for insurance companies. As a result, the number of personnel assigned to ad hoc inspections will increase by 19.2%.

In particular, this year will see a focused implementation of special thematic inspections on financial consumer protection. The FSS plans to examine the internal controls at headquarters across the entire lifecycle of financial product manufacturing, sales, and post-management. It will also conduct linked inspections of branches and headquarters that pose high risks to financial consumers. For branches selling high-risk products such as equity-linked securities (ELS), the agency will closely assess the appropriateness of work processes.

Additionally, through inspections of financial companies, the FSS will examine overall corporate governance, including CEO succession at banks, appointment of outside directors, and performance-based compensation systems, to encourage modernization. The agency will also focus on inspecting the internal control management system and its implementation based on the chart of responsibilities.

Furthermore, the FSS will strengthen its inspections of vulnerable areas within financial companies to proactively manage risk factors.

In addition, ahead of the implementation of the second phase of the Virtual Asset Act, the FSS will assess the readiness of each business operator and seek to strengthen the supervisory system for virtual assets and internal controls by supplementing deficiencies through on-site consulting.

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