[Asia Economy Reporter Lee Jung-yoon] On the 9th, the Financial Supervisory Service (FSS) announced that it will improve the disclosure method regarding the fact that securities companies only disclose the interest rates for face-to-face credit transaction loans despite differences in interest rates between face-to-face and non-face-to-face credit transaction loans.
As an improvement plan, the FSS will establish interest rate disclosures by account opening method. The FSS plans to separately disclose the interest rates for face-to-face and non-face-to-face account opening methods on its website screen so that investors can directly compare and choose the interest rates. Currently, the disclosure mainly focuses on the interest rates applied to investors who opened accounts face-to-face, making it difficult for investors who opened accounts non-face-to-face to grasp related interest rate information.
In addition, guidance on interest rate calculation methods will be strengthened. Furthermore, to enhance predictability of interest burden, detailed interest costs will be additionally provided through examples of specific loan situations.
Securities companies have been disclosing credit transaction loan interest rates by period through the Korea Financial Investment Association website every month, but only disclosed face-to-face interest rates, leading to criticism that the provision of interest rate information was insufficient.
An FSS official stated, "First, we will attach files distinguishing face-to-face and non-face-to-face interest rates on the Korea Financial Investment Association website so that investors can check detailed information," and added, "During the first quarter of this year, we plan to improve the disclosure screen on the association’s website and revise the forms to ensure sufficient disclosure of interest rates by account opening method."
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