Guidance on Improving Work Processes to Comply with Newly Established Regulations
The Financial Supervisory Service (FSS) announced on the 9th that it will conduct special on-site inspections of 10 loan companies.
The FSS explained that the special inspections will be carried out as the grace period for the Personal Debtor Protection Act ends on the 16th.
The inspections will be conducted from the 10th to the 30th, deploying about 70 personnel in total. The targets are medium to large loan companies with significant assets that have inadequate internal controls.
The inspections will check the improvement status regarding restrictions on overdue interest, transfer regulations, total collection limits, and debt adjustment operation procedures. They will also examine whether systems to comply with newly established regulations have been put in place.
They plan to inspect whether any actions violating laws and regulations have been committed.
For companies found to have vulnerabilities or violations during this inspection, strict guidance will be given to strengthen internal controls and prevent recurrence.
The FSS plans to conduct year-round occasional inspections, on-site checks, and briefings for the loan industry in the future.
In the second half of the year, additional special on-site inspections will be conducted for small and medium-sized companies. Companies with frequent complaints will be subject to occasional inspections.
After the grace period ends, any illegal debt collection or other violations will be dealt with strictly through rigorous inspections with a zero-tolerance policy.
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