[Financial Microscope] FSS Governor Lee Chanjin Pushes to Upgrade Consumer Protection Division... National Report Conference Planned for Next Year

Upgrading Consumer Protection Division to Headquarters and Launching New Committee
Governor Personally Handles Complaints and Strengthens On-Site Engagement with Forums
Results to Be Announced in the First Half of Next Year... "Strict Sanctions

The Financial Supervisory Service has initiated a reorganization of its financial consumer protection division. This move aims to change the longstanding practice in the financial sector of providing delayed compensation after incidents occur, and instead to establish a culture of consumer protection throughout the entire process, from product design to sales. The Financial Supervisory Service plans to publicly announce the results of its financial consumer protection efforts at a national briefing in the first half of next year.

Governor Personally Handles Complaints: "No Shifting of Responsibility"

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 September 23, 2025. Photo by Kang Jinhyung

Lee Chanjin, Governor of the Financial Supervisory Service, met in succession with the chief executive officers of nine sectors-including banking, insurance, savings banks, financial investment, big tech (large information technology companies), credit, mutual finance, research institutes, and virtual assets-immediately after taking office on August 14, urging them to strengthen consumer protection.

This decision stems from the belief that the supervisory authority itself must first lead the change, rather than placing all responsibility on private financial companies. Governor Lee declared a "hands-on management" approach by personally handling complaints, and announced plans to implement a series of reform initiatives within next year, including operating an advisory committee, holding forums, revising internal regulations (charters), reorganizing the organization, and hosting a national briefing. Within the financial sector, there is a consensus that "every possible measure has been taken."

Of particular note is the "Management Complaint Consultation Day," which will be held from October to December. All 14 members of the Financial Supervisory Service's executive team-including the governor, senior deputy governor, deputy governors, and assistant deputy governors-will participate and conduct consultations in a relay format, divided by sector. This initiative is expected to be seen not as a simple social contribution activity, but as a practical consumer protection effort directly tied to the organizational restructuring of the Financial Supervisory Service.

Financial Consumer Protection Division Upgraded... New Task Force for Civil Crimes

In December, the Financial Supervisory Service plans to upgrade the Financial Consumer Protection Department to the "Financial Consumer Protection Headquarters." Although no official announcement has been made, there is speculation within the financial sector that the head of the headquarters may be promoted to the level of senior deputy governor, a rank higher than the current department head. This is a matter directly related to the overall organizational restructuring and executive appointments at the Financial Supervisory Service.

To avoid controversy over unilateral personnel decisions, the Financial Supervisory Service plans to conduct various consumer protection activities over the next three months and reflect the results in the organizational restructuring. Specifically, a "Financial Consumer Protection Planning Team" will be established under the senior deputy governor, allowing consumer groups and consumers to directly participate and identify on-site issues such as personal information leaks, excessive financial advertising, and guidance on high-risk financial products like equity-linked securities (ELS).

In addition, a "Financial Consumer Protection Committee" will be established under the direct supervision of the governor to provide advice on the planning team's recommendations, major system improvements, and inspections of financial institutions. This reflects the intention to incorporate consumer feedback into the supervisory process.

At the same time, the Financial Supervisory Service will establish a "Civil Crimes Response Task Force" to focus on crimes that cause significant harm to ordinary citizens, such as illegal private lending, voice phishing, and insurance fraud. Although the existing Financial Consumer Protection Department has sufficient personnel, the creation of a separate task force demonstrates a strong commitment to reducing civil crimes.

Governor Lee warned, "We will be even stricter judges for financial companies that violate fair rules," adding, "For financial companies that neglect their consumer protection responsibilities, we will impose the maximum penalties allowed by law, such as fines and business suspensions, and will be prepared to expel them at any time."

Reform Drive Coincides with National Assembly Audit... Results to Be Announced in First Half of Next Year

Sehun Lee, Senior Deputy Governor of the Financial Supervisory Service, is speaking at a press conference held immediately after the "All Employees' Resolution Meeting to Strengthen Financial Consumer Protection" at the Financial Supervisory Service headquarters in Yeouido, Yeongdeungpo-gu, Seoul, on the 29th of last month. Photo by Chaeseok Moon

The Financial Supervisory Service is facing a National Assembly audit this month. As a result, it is expected that the outcomes of consumer protection activities conducted over the next three months will significantly influence the direction of organizational restructuring and personnel appointments.

The timing of the national briefing scheduled for the first half of next year is also drawing attention. If the Public Institutions Management Committee convenes at the end of January next year, the Financial Supervisory Service could be designated as a public institution and become subject to government oversight. Some observers speculate that Governor Lee may reveal the results at the briefing first to generate public opposition to the designation as a public institution.

However, the Financial Supervisory Service has denied this. They stated that it would be physically difficult to prepare the briefing before January next year, and that the timing is not a strategic decision based on the committee's schedule.

Senior Deputy Governor Sehun Lee commented, "Since the briefing must be held after visible results have been achieved, it will be difficult to hold it in the near future," adding, "We are aiming for the first half of next year, and the specific timing will be reviewed later."