The Financial Supervisory Service Receives 'B' in Management Evaluation for 4 Consecutive Years... Points Deducted in Consumer Protection

[Asia Economy Reporter Song Hwajeong] The Financial Supervisory Service (FSS) received a 'B' grade for the fourth consecutive year in its management evaluation.

According to data submitted by Yoon Chang-hyun, a member of the People Power Party, from the Financial Services Commission on the 16th, the FSS received an average score of 82.86 points from four external private committee members in last year's management evaluation, resulting in a 'B' grade.

Since 2009, the Financial Services Commission has conducted annual management evaluations of the FSS through a separate committee composed of external personnel. The grading scale ranges from the highest S grade (100 to 95 points), A grade (below 95 to 85 points), B grade (below 85 to 75 points), C grade (below 75 to 65 points), D grade (below 65 to 60 points), to E grade (below 60 points). The FSS received an 'A' grade in 2015, 'C' grades in 2016 and 2017, and has consistently received 'B' grades from 2018 through last year.

In last year's evaluation, the FSS was deducted 2.04 points and 1.42 points respectively in quantitative indicators related to financial consumer protection and the realization of social value. For non-quantitative indicators, in key business areas converted to a 100-point scale, international cooperation related to finance scored 72 points, and financial supervisory services scored 78 points. In the management sector, scores were lower with organization, personnel, and financial management at 68.6 points, and innovation and communication at 71.9 points.

Performance bonuses are paid differentially according to the management evaluation grade. Based on the B grade, the FSS plans to pay evaluation bonuses amounting to 127% of salary for employees and 62% for executives. The average evaluation bonus per person at the FSS was 6.44 million KRW in 2017, 5.5 million KRW in 2018, 5.8 million KRW in 2019, 5.49 million KRW in 2020, and 6.43 million KRW last year.

Assemblyman Yoon Chang-hyun stated, "The FSS is an institution that provides supervisory services to ensure the soundness of financial companies and protect consumers," adding, "FSS Governor Lee Bok-hyun must prioritize restoring fairness in personnel matters and innovating supervisory methods."

The FSS is actively strengthening financial consumer protection.

Considering ongoing complaints from financial consumers about excessive loan-deposit interest rate spreads, the FSS will implement periodic disclosures of these spreads starting this month. If necessary, it will review the appropriateness of additional interest rates and check for collusion factors. Law enforcement will also be strengthened against illegal private loans and voice phishing, with plans to introduce an artificial intelligence (AI) monitoring system to detect online illegal private loan advertisements, implement financial companies' Fraud Detection Systems (FDS), and enforce financial companies' accountability measures.