FSS "Separating Livelihood Complaints of Vulnerable Groups for Prompt Processing"

Currently in pilot operation
The official implementation timing and eligible support targets will be confirmed later

[Image source=Yonhap News]

[Asia Economy Reporter Sunmi Park] A hearing-impaired basic livelihood security recipient, Mr. A, whose livelihood became difficult due to COVID-19, was repaying interest on an OO Capital loan with basic livelihood security benefits. He inquired through the Financial Supervisory Service (FSS) complaint system whether the repayment method could be changed from a lump-sum principal repayment to an equal principal and interest installment repayment. Judging this as a livelihood-related complaint from a vulnerable group, the FSS requested cooperation from the financial company, and OO Capital, considering the complainant’s economic situation and history of diligent interest payments, not only changed the repayment method but also proceeded with an additional interest rate reduction.

On the 29th, the Financial Supervisory Service announced that it is pilot-operating a system that defines livelihood-related complaints from vulnerable groups as 'livelihood-related complaints' and processes them separately and promptly from general financial complaints.

To activate the handling of livelihood-related complaints, the FSS screens whether a complaint qualifies as a livelihood-related complaint upon receipt. To enhance the effectiveness of the system, dedicated teams are organized by financial sector, and complaint specialists with extensive financial experience are appointed as dedicated handlers, who promptly relay the complaint details to the financial company and quickly negotiate the possibility and methods of support. Thanks to the FSS’s swift processing and the financial companies’ active cooperation, support measures can be implemented within 24 hours.

The FSS, considering that the purpose of this system is debt adjustment for diligent debtors with a will for self-reliance and urgent livelihood support for vulnerable groups, decided that complaints related to illegal or unfair financial transactions by financial companies and complaints from general financial consumers who are not vulnerable groups will be handled fairly through the existing complaint investigation process.

Since the handling of livelihood-related complaints directly linked to the livelihood of vulnerable groups is a matter of financial companies’ autonomous decision, the proactive cooperation of financial companies is absolutely essential for the successful establishment of this system. The FSS plans to actively communicate the purpose of the system to related associations and financial companies, considering consumer protection capabilities by sector during the pilot operation period, collect improvement requests from financial companies, and carefully review them to guide the smooth settlement of the system within the financial industry.

An FSS official stated, "We have been pilot-operating the system since the 12th, targeting complaints received at the FSS headquarters before the full-scale implementation of the system," and added, "The detailed matters such as the timing of full-scale implementation and support targets will be finalized after the pilot operation period. If successfully established, it is expected to contribute to embedding the value of inclusive growth where our financial industry coexists with economically disadvantaged groups."