Financial Industry "Increased Business Uncertainty Due to Enactment of Financial Consumer Protection Act"
Financial Authorities "Accelerating Final Preparations Through Close Communication"
[Asia Economy Reporter Kim Hyo-jin] Financial authorities have decided to operate a 'Financial Consumer Protection Act Implementation Preparation Task Force' to ensure the effective operation of the Financial Consumer Protection Act, which will take effect in March next year.
On the 29th, Do Gyu-sang, Vice Chairman of the Financial Services Commission, chaired an inclusive finance meeting via video attended by representatives from financial associations such as the Korea Federation of Banks, consumer organizations including the Financial Consumer Network, and related institutions like the Financial Supervisory Service, announcing this policy.
The financial authorities plan to operate the task force starting from February next year, one month before the Act's enforcement, to prepare related guidelines and promptly respond to industry difficulties such as promotion.
The financial industry expressed concerns that the enactment of the Financial Consumer Protection Act introduces many new systems, increasing business uncertainties, and suggested the need to provide related guidelines and education.
Vice Chairman Do urged, "Financial authorities and related agencies must communicate closely to thoroughly prepare subordinate regulations such as enforcement decrees, while accelerating final preparations including education and promotion for financial companies and consumers."
He also stated, "We must thoroughly prepare to ensure that the scheduled reduction of the statutory maximum interest rate in July next year is smoothly established in the market, maximizing positive effects such as reducing interest burdens and minimizing side effects like contraction of financial system usage."
He emphasized, "We will devise multifaceted methods to enable community finance institutions such as savings banks and loan companies to smoothly perform their credit supply functions for low-credit citizens with repayment ability."
Vice Chairman Do expressed his intention, "We will completely reorganize the supply system of community finance products to ensure that funds effectively meet the demands of low-income and vulnerable groups, and actively support the revitalization of private autonomous supply of community finance products."
He added, "We will strive for the prompt passage of the amendment to the Community Finance Act, which aims to secure stable community finance resources to respond to increased demand for community finance due to changes in the financial environment such as the reduction of the maximum interest rate and the prolonged COVID-19 pandemic, through the National Assembly."
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