FSS Aims to Resolve Unfair Capital Market Practices for the KOSPI 5000 Era

Financial Supervisory Service Briefs National Planning Committee on Key Issues and Pledges
Focus on Capital Market Trust, Consumer Protection, and AI-Driven Financial Innovation
No Discussion of Organizational Restructuring During the Session

On June 24, the Financial Supervisory Service held a business briefing for the National Planning Committee at its Yeouido headquarters in Seoul. The briefing covered major current issues faced by the Financial Supervisory Service, as well as measures for implementing key financial sector pledges.

The session reviewed topics such as enhancing trust in the capital market, strengthening the protection of financial consumers' rights by preventing incomplete sales and financial crimes affecting livelihoods, reinforcing risk management for household debt and real estate project financing, expanding funding for small business owners, and the need to promote innovative finance to support the development of artificial intelligence (AI).

Regarding the implementation of financial sector pledges, discussions were held on measures to resolve unfair practices in the capital market, which have been identified as core causes of the Korea Discount, as well as ways to boost the supply of venture capital, with the aim of ushering in the KOSPI 5000 era.

In light of recurring large-scale consumer damage issues, there were in-depth discussions on ways to achieve consumer-centered financial supervision, such as introducing unilateral binding force in dispute mediation and establishing a 'Financial Consumer Protection Evaluation Committee' led by private-sector experts.

Additionally, there was a broad exchange of views on facilitating financial support for struggling households and small business owners, managing household debt, eradicating financial crimes affecting livelihoods, responding to new supervisory demands arising from AI development, strengthening internal controls at financial institutions, and enhancing the social responsibility of insurance.

Jung Taeho, head of the Economic Division 1 of the National Planning Committee, met with reporters after receiving the business briefing that afternoon and stated, "There was a report on necessary organizational improvement measures for consumer protection," and added, "Compared to other ministries, much more thorough preparation was made."

Jung also requested, "The Financial Supervisory Service should focus its capabilities on eradicating illegal debt collection and voice phishing, which plague the lives of the public," and "The Financial Supervisory Service should establish a comprehensive vision related to the realization of an AI government, in order to support the AI government initiative being pursued by the new administration."

Meanwhile, organizational restructuring, such as splitting departments, was not discussed during the business briefing.