September 16 Meeting with Credit Finance Industry CEOs
"Zero Tolerance Policy"... CEOs to Oversee Security Management
On September 16, Lee Chanjin, Governor of the Financial Supervisory Service, held his first meeting with the chief executive officers (CEOs) of the credit finance industry and urged them to ensure thorough preparedness against cyber breaches. In light of the recent hacking incident at Lotte Card, he particularly emphasized that, under a "zero tolerance policy," the CEOs of card companies must personally oversee the development and implementation of security measures.
Lee Chanjin, Governor of the Financial Supervisory Service, is delivering opening remarks at the 'Financial Supervisory Service Governor-Big Tech CEO Meeting' held at Naver Square Yeoksam in Gangnam-gu, Seoul on the 11th. 2025.9.11 Photo by Kang Jinhyung
On this day, at the Credit Finance Association in Jung-gu, Seoul, Governor Lee met with Jung Wankyu, Chairman of the Credit Finance Association, and the CEOs of 15 credit finance companies. He stated, "We must use the recent cyber breach incidents in the financial sector as a painful lesson for self-reflection, questioning whether they resulted from prioritizing short-term performance over long-term investment."
Governor Lee requested that the CEOs of the credit finance industry: ▲ strengthen the protection of financial consumer information, ▲ shift toward a consumer-friendly work paradigm, ▲ reinforce internal controls and soundness management, and ▲ expand the supply of venture capital and continue management innovation.
He first stressed the need to prevent hacking incidents and similar issues through thorough protection of consumer information.
Lee stated, "Since card companies handle the information of the entire nation, it is essential to maintain a heightened sense of vigilance regarding information security. I urge the CEOs to adhere strictly to their information protection obligations by personally and fundamentally re-examining their cyber security infrastructure under a zero tolerance policy."
He continued, "In particular, I hope you will ensure the establishment and implementation of security measures required by relevant laws and regulations, such as the Credit Information Act. The Financial Supervisory Service will also closely monitor compliance, and any violations will be met with strict and severe accountability."
He called for improvements to consumer access channels, such as applications, websites, and call centers.
He said, "Recently, there have been numerous complaints that, during emergencies such as hacking incidents, it is difficult to reach customer service by phone, not only at night or on weekends but even during regular business hours, and that procedures are overly complicated. I hope you will make groundbreaking improvements to consumer access channels so that consumers can exercise their rights to self-protection in a timely manner."
Given the recent sharp rise in delinquency rates among credit finance companies, he also called for enhanced soundness management. According to the "Business Performance of Credit Finance Companies for the First Half of 2025" released by the Financial Supervisory Service on September 5, the delinquency rate for the eight major card companies (Samsung, Shinhan, Hyundai, KB Kookmin, Woori, Hana, Lotte, and BC Card) stood at 1.76% at the end of June, the highest quarterly figure since the third quarter of 2014 (1.83%).
Lee stated, "In light of the recent rise in delinquency rates, credit finance companies must strengthen their soundness management. Considering the uncertainties of economic fluctuations, I urge you to implement management plans for distressed project financing (PF) sites without delay and to proactively respond by setting aside sufficient provisions for assets at risk of default."
He also urged the industry to focus on "productive finance" to support startup growth. As the investment volume dropped sharply from 8.3 trillion won in 2021 to 5.3 trillion won last year and 3 trillion won in the first half of this year, he stressed that the credit finance sector must actively supply venture capital.
He said, "I ask that you combine innovative ideas with the vast consumer data held by card companies to pursue data-driven new businesses and discover future growth engines. The financial supervisory authorities will also consider institutional improvements for new technology finance and will broadly permit innovative financial services as well as concurrent and ancillary work."
The CEOs stated that they will make further efforts to normalize real estate project financing, manage household debt, and innovate payment and settlement work. Due to declining profitability caused by intensified competition in the payment market and economic slowdown, they requested the development of policies to expand support for vulnerable borrowers and to broaden the business scope of credit finance companies.
In response, Governor Lee said, "Building trust in the stability of credit finance companies is the most important factor for the survival of the industry. Going forward, we will actively reflect industry proposals in supervisory and inspection work and provide institutional support, such as improving unnecessary regulations."
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