Financial Consumer Protection Department to Be Upgraded to Headquarters... Lee Chanjin Warns, "Financial Firms Neglecting Consumer Protection Can Be Expelled Anytime"

Strengthening the Financial Consumer Protection Department After Blocking the Separation of the FSS
Establishment of a Consumer Protection Committee Reporting Directly to the Governor
"Full-Scale Reorganization into a Consumer Protection Organization"
'National Report Meeting' Planned Next Year After Organizational Restructuring

The Financial Supervisory Service (FSS) will elevate its Financial Consumer Protection Department to the Financial Consumer Protection Headquarters this December. A new Financial Consumer Protection Committee, reporting directly to Governor Lee Chanjin, will be established to oversee institutional improvements and inspections related to consumer damage incidents, such as the recent losses from Hong Kong equity-linked securities (ELS). The FSS also warned that it will mobilize all sanctions permitted by current law and remove financial firms from the market at any time if they neglect their responsibilities to protect consumers.

Lee Chanjin, Governor of the Financial Supervisory Service, is delivering opening remarks at the 'Financial Supervisory Service Governor-Research Institute Heads Meeting' held at the Korea Financial Investment Association in Yeouido, Seoul on the 23rd. 2025.9.23 Photo by Kang Jinhyung

On the 29th, Governor Lee made these remarks during the "All Staff Financial Consumer Protection Commitment Rally" held at the FSS headquarters in Yeouido, Yeongdeungpo-gu, Seoul. He stated, "During the recent organizational restructuring discussions, I recognized that the FSS's level of financial consumer protection does not meet public expectations."

Governor Lee announced a sweeping organizational overhaul. He pointed out that the FSS has focused more on supervising the soundness of financial companies, while consumer protection has mostly been reactive, addressing issues only after incidents occur. He emphasized the need to change this practice by rearming the FSS with a "financial consumer protection DNA" and guiding financial companies to cooperate. He said, "While we frequently interact with financial companies, our contact with consumers usually only happens after an incident, leading to an undeniable imbalance between the two sides."

By December, the Financial Consumer Protection Department will be upgraded to the Financial Consumer Protection Headquarters. This change will enable consistent handling of complaints, disputes, product reviews, and supervisory and inspection work across sectors such as banking, small and medium finance, financial investment, and insurance. In addition, the Dispute Mediation Bureau under the department will be reorganized into regional headquarters for each sector. This aims to maximize synergy between the development of systems by the Bank Supervision Bureau, regular and ad-hoc inspections conducted by the Bank Inspection Bureau, and the existing complaint handling and dispute mediation work of the department.

A Financial Consumer Protection Committee, reporting directly to the governor, will be established in December. This is intended to significantly reflect consumer opinions in all major institutional improvements and inspection matters.

After the rally, the FSS launched the "Financial Consumer Protection Planning Team" under Senior Deputy Governor Lee Sehun. This team, which will operate until December, will support the practical work of the governor’s committee. The existing "Financial Consumer Protection Enhancement Task Force" under Deputy Governor Hwang Seono for Planning and Strategy has been expanded and reorganized into this team.

Tasks identified by the planning team to strengthen consumer protection during the product review and sales stages will be reflected in the FSS’s year-end organizational restructuring. The team will focus on: ▲ preventing information leakage through card cancellations ▲ inspecting and improving excessive broadcast advertising by insurance companies ▲ delivering information about complex financial investment products such as Hong Kong ELS public funds ▲ and providing advance guidance on the risks of financial product re-subscription (rollover).

From next month until the end of the year, the FSS will hold large-scale forums on financial consumer protection. Panels of experts from academia, industry, consumer groups, and research institutes will participate in these forums, and their recommendations will be reflected in the planning team’s review agenda. Starting next month, Governor Lee and the FSS management will also personally handle financial counseling and complaints for three months through "Executive Complaint Counseling Days."

Additionally, the "Comprehensive Civil Financial Crime Response Team" under Deputy Governor Kim Sungwook for Civil Finance will be activated. The FSS plans to strengthen the team’s personnel and organization to respond comprehensively and systematically to financial crimes that harm the public, such as illegal private lending, voice phishing, and insurance fraud.

Next year, the FSS plans to hold a "Financial Consumer Protection Innovation National Report Meeting." After completing the organizational restructuring, including the operation of the planning team and the elevation of the department to headquarters, the FSS will inform the public about its innovation achievements and future directions.

Governor Lee stressed that as the FSS undergoes major reforms, financial companies must also actively cooperate in protecting financial consumers. He stated, "For financial companies that neglect their responsibilities for consumer protection, we will exercise the strongest sanctions allowed by law, such as fines and business suspensions, and operate with the mindset that we can remove them from the market at any time."