Financial Supervisory Service to Conduct On-Site Inspections of Online Loan Brokers

On-Site Inspections for Major Online Platforms with High Loan Brokerage Performance

On the 17th, the Financial Supervisory Service (FSS) announced that it will conduct on-site inspections of online loan product sales agents and brokers.

The FSS will sequentially carry out on-site inspections starting from today targeting four major online platforms with high loan brokerage performance.

The inspection team plans to focus on analyzing loan product comparison and recommendation algorithms to check for distortions in loan interest rate and limit calculations, as well as false or exaggerated advertising.

They aim to examine the operational status of algorithms for loan products that significantly impact consumers to ensure that consumers' rights to make rational choices are fully guaranteed. They will also closely review internal control procedures when algorithm programs are changed and post-management procedures when important algorithm matters are modified.

An FSS official stated, "If any vulnerabilities such as conflicts of interest are found during the on-site inspections, we will immediately guide corrective actions," adding, "If necessary, we will actively develop recurrence prevention measures including institutional improvements to strengthen internal controls."

He continued, "We will also disseminate the vulnerabilities to the industry so that they can self-inspect and correct the algorithms currently in operation," and added, "After providing opportunities for voluntary correction, we will strictly respond to any discovered unfair business practices."