Financial Supervisory Service Holds 9th Fair Finance Promotion Committee Meeting
Standardized Guidance Documents for Foreign Insurance Policyholders to Be Introduced
Guardians will now be able to receive cash and debit cards and use automated teller machines (ATMs). Convenience for foreigners using insurance services will also be improved.
On July 1, the Financial Supervisory Service announced that it had held the 9th Fair Finance Promotion Committee meeting, where it discussed measures to improve the convenience of financial transactions for guardians and to enhance the user experience for foreign insurance policyholders.
According to the Financial Supervisory Service, the use of the guardianship system, which supports adults who have difficulty managing assets or making decisions due to old age, illness, or disability, is on the rise.
However, some financial institutions have restricted the issuance of cash and debit cards and the use of ATMs for guardians with legal authority, such as adult guardians and limited or specific guardians. As a result, guardians have faced inconvenience, having to visit branches each time to make deposits, withdrawals, inquiries, or transfers.
The Financial Supervisory Service, after discussions with the financial sector, has decided to improve the system so that, starting in the second half of the year, guardians with legal authority will be able to receive cash and debit cards and use ATMs.
In addition, the convenience of foreign insurance consumers will be enhanced.
As of the end of last year, the number of foreigners residing in Korea reached a record high of 2.65 million. The number of insurance contracts signed by foreigners also increased from 740,000 in 2021 to 1.14 million last year.
The Financial Supervisory Service plans to prepare standardized guidance documents for each stage of the insurance contract process so that foreign insurance policyholders can understand important contract details.
In the third quarter, the agency plans to provide standardized guidance documents in English and Chinese for each stage of the insurance contract process, including insurance solicitation, contract maintenance, and insurance claims.
In the fourth quarter, standard guidance documents for foreigners will be provided alongside existing explanatory materials at the stages of insurance solicitation, contract management notification, and accident insurance claim submission.
Kim Miyeong, Director General of the Financial Consumer Protection Bureau at the Financial Supervisory Service, stated, "The use of the guardianship system continues to increase as Korea enters a super-aged society," and urged, "Please actively cooperate with relevant institutions and the industry to enhance the convenience of financial transactions for wards through their guardians."
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