Raised Fairness Issues with Card Companies at the Financial Supervisory Service Governor's Meeting
[Asia Economy Reporter Ki Ha-young] Mok Jin-won, CEO of Hyundai Capital, raised the issue of fairness between capital companies and card companies when purchasing vehicles, emphasizing the principle that "the supervisory system should be the same for tasks with the same functions."
On the morning of the 7th, Mok conveyed this opinion at a meeting held at the Kensington Hotel Yeouido in Seoul with the Financial Supervisory Service (FSS) Governor and CEOs of specialized credit finance companies.
Mok expressed gratitude for the proactive and swift support shown by the FSS during the recent establishment of the local subsidiary in France (Hyundai Capital France), and stated, "Currently, different regulations are applied when purchasing vehicles through capital companies and card companies," adding, "It is reasonable that the same supervisory system be applied to essentially the same functions."
This pointed out the discrimination existing among companies in the operation of lease and installment sales agents under the Financial Consumer Protection Act (hereinafter referred to as the FCPA). Regarding vehicle purchases, sales agents related to capital companies must receive prior training and pass an exam before engaging in sales activities. In contrast, agents handling related products for card companies sell vehicles using cards without even registering.
In particular, although both provide financial services linked to vehicle sales, only installment use through capital companies is subject to strict FCPA regulations, including responsibility for incomplete sales, which has reportedly caused significant dissatisfaction among salespeople affiliated with automobile manufacturers.
In response, CEO Mok emphasized, "It is necessary for the supervisory authorities to conduct sound guidance to ensure that the basic principle of 'same function, same supervision' is applied by inspecting compliance with the FCPA in the sales field." He also requested prior regulatory relaxation to activate ancillary businesses in the capital industry.
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