FSS to Launch AI Civil Complaints Portal Next Year, Establish Supervisory Framework for Digital Assets

First "Financial Consumer Protection Performance National Reporting Conference" Held
Strengthening Preventive Consumer Protection Oversight
Incorporating Consumer and Expert Suggestions into Next Year’s Work Plan

The Financial Supervisory Service (FSS) is establishing a supervisory framework to respond to emerging financial environments, including digital assets. In January of next year, the FSS plans to launch an "Artificial Intelligence (AI) Civil Complaints Portal" to enhance the efficiency of civil complaint and dispute resolution processes.

On September 17, the FSS held a "Financial Consumer Protection Performance National Reporting Conference" at the auditorium on the 2nd floor of its headquarters, where it presented the future direction of its consumer protection oversight.

This event was organized to share with the public the FSS's efforts to strengthen consumer protection, including the consumer protection improvement roadmap promoted since the consumer protection commitment declaration in September of last year, and to discuss areas that need further improvement going forward.

In his opening remarks, FSS Governor Lee Chanjin stated, "Civil complaints and disputes continue to increase, and short-term performance-driven business practices persist in the market, meaning that consumer protection has yet to be fully internalized within the work and management culture of financial companies." He emphasized that, "True results are achieved when consumers can feel change in financial settings, and we will attentively listen to on-the-ground inconveniences and criticisms to reflect them in future policies."

To respond to the evolving digital financial environment, the FSS will steadily implement the "Financial Supervision AX Strategy Roadmap" to enhance the capacity and productivity of its supervisory work, while establishing a supervisory framework that fits new financial environments such as digital assets. Additionally, through tools such as the "AI Civil Complaints Portal," which is scheduled to be launched in January of next year, the FSS will improve the efficiency of civil complaint and dispute processing and strengthen financial companies' own capacity to address disputes and complaints.

To ensure that the consumer protection supervisory framework works effectively on the ground, the FSS will also conduct ongoing meetings and field inspections. Furthermore, it will expand the functions of the platform for responding to financial crimes that impact everyday lives through cooperation with the government and related institutions, and strengthen on-site awareness campaigns and preventive education programs. The FSS will also work closely with the Financial Services Commission on legislative measures related to financial consumer protection, to ensure an effective legal framework.

Kim Wookbae, Deputy Governor responsible for overseeing consumer protection, shared key achievements that have been accomplished by prioritizing consumer protection as the top value in supervisory work.

He explained that the FSS has reorganized to organically link supervision, inspection, and dispute mediation, and has repositioned consumer protection as a core supervisory task for all employees. Consumer-centered governance has been established through the "Financial Consumer Protection Advisory Committee" and the "Consumer Risk Response Council," and regular meetings of the Dispute Mediation Committee have been institutionalized to strengthen remedies for consumer harm. As a result, a total of 94 cases of civil complaints and disputes have led to regulatory improvements between July last year and August this year.

The FSS has also built a lifecycle-based supervisory framework for financial products. To preemptively block the risks of the release and sale of unsound products and to ensure consumers fully understand key risks, the regulatory regime has been overhauled to strengthen consumer protection from the design and manufacturing stage through sales and post-sale management.

A comprehensive, dedicated one-stop support system for illegal private financing has been put in place, along with a cooperative regime with government and related agencies. Measures were also taken to introduce special judicial police for financial crimes affecting everyday lives, and support was provided for the issuance and filing of nullification certificates and lawsuits regarding illegal loan contracts. In the case of voice phishing, the FSS reported that 63.66 billion won in damages were prevented by using an AI platform for information sharing and analysis.

The FSS is developing a platform to block new forms of malicious insurance fraud and has established a comprehensive evaluation system for inclusive finance within the banking sector. It has also promoted the use of basic living expense accounts, expanded the supply of "Saehimang Holssi" microloans, and launched loan products specifically for individuals with mid- to low credit scores—initiatives collectively referred to as "warm finance."

To address cyber incidents driven by AI, an integrated control system (FIRST) has been in operation since February, and an AI-based market surveillance system has been created to monitor for suspected unfair trading practices.

During the reporting conference, financial companies shared major case studies and future plans reflecting the enhanced consumer protection approach in their management and business processes. Shinhan Bank, KB Insurance, NH Investment & Securities, and Hyundai Card each presented on-site improvement cases.

Next, Kwon Young Jang, CEO of Boston Consulting Group (BCG), stressed, "There is a need to shift the standard of consumer protection from mere regulatory compliance to the actual results obtained by consumers (Good Customer Outcome)."

The panel discussion was moderated by Woochan Kim, a professor at Korea University, with participation from general financial consumers, external experts, and financial industry employees. Panelist Jeong Woon-Young, Chair of the Financial and Happiness Network, emphasized, "True everyday financial support involves looking beyond the provision of funds to the subsequent lives of recipients. Efforts must not stop at connecting education, counseling, debt adjustment, welfare, and employment." He also suggested building a continuous support infrastructure that draws upon the expertise and practical experience of civil actors and recommended ongoing cooperation among public sectors, financial industry, and civil consumer groups.

The FSS plans to post the discussion topics and review results from the day on its website.

The FSS also announced that it will actively incorporate the suggestions and improvement proposals offered by consumers and experts into its supervisory work, inspections, and regulatory enhancements. Additionally, supplementary tasks identified through performance evaluations will be reflected in next year's work plan.

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