Ichankin: "Pushing for Legislative Institutionalization of Consumer Protection Framework... Cooperating with the Financial Services Commission"

Korea's Financial Consumer Protection Act Focuses on Sales Activities

Supervision Expanded to Entire Life Cycle of Financial Products

Complete Redesign of Consumer Protection Organization

Ichankin, Governor of the Financial Supervisory Service, announced plans to pursue the legislative institutionalization of the consumer protection framework.

Yonhap News Agency

On this day, during the ‘Financial Consumer Protection Performance National Report Conference’ held at the headquarters of the Financial Supervisory Service in Yeouido, Seoul, Governor Ichankin stated, “Going forward, it is necessary to complement the system so that the legislative framework for consumer protection can be fully established through legislative efforts. For this purpose, we will work closely with the Financial Services Commission.”

Unlike advanced jurisdictions such as the United Kingdom, where consumer protection laws are designed to ensure consumer protection throughout the entire product lifecycle—from product design and manufacturing to end-of-life—Korea’s Financial Consumer Protection Act mainly focuses on regulating sales activities.

Governor Ichankin stressed, “Consumer protection is not a mere adjunct to finance, but a foundation of trust that enables finance to exist,” adding, “The Financial Supervisory Service has redesigned its organization and work so that consumer protection can be embedded throughout the entire institution.”

Specifically, he explained that a consumer-centric governance model has been established, feedback mechanisms between each sector have been reinforced to ensure that all business processes are organically connected for consumer protection, and preemptive supervision has been initiated throughout the full product lifecycle—from design and manufacturing to sales and after-service management.

With regard to eradicating financial crimes affecting ordinary citizens, he noted that a comprehensive response system has been strengthened, ranging from AI-based proactive blocking to swift investigation, crackdown, and relief of financial damages. In addition, efforts are underway to introduce special financial crime investigators, bolstering on-the-ground response capabilities even further.

He announced that, alongside strengthening the foundation for inclusive finance, information security supervision has also shifted to focus on preemptive prevention. Governor Ichankin said, “In order to prevent low-income and vulnerable groups from falling into blind spots in finance and welfare, we are strengthening the foundations of inclusive finance by expanding financial accessibility and improving financial capability. At the same time, so that financial consumers can safely use financial services amidst cyber threats, we are running an integrated monitoring system and establishing a proactive defense posture against security threats, making IT and information security supervision preemptive.”

However, he emphasized that there is still a long way to go for true consumer protection. “The number of complaints and disputes filed with the Financial Supervisory Service continues to rise, and short-term performance is still often prioritized over the best interests and long-term trust of consumers in the field,” he pointed out.

In conclusion, Governor Ichankin said, “Tangible changes that consumers experience in the financial sector are the real achievements, so today’s report is not the finish line but the starting point. In the following discussion, I will listen to what we are lacking and what more needs to be changed.”

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