[2025 Audit] Lee Chanjin: "Securities Firms' Free Commission Events Cause Side Effects... System Improvements Planned"

Lee Chanjin, Governor of the Financial Supervisory Service, stated on October 27 that regarding the free commission events offered by securities firms and related institutions, "We will conduct a comprehensive review and work on improvements, as these unsound business practices undermine fair market competition and even harm consumer welfare."

Lee Chanjin, Governor of the Financial Supervisory Service, listens to questions from lawmakers during a comprehensive audit of the Financial Services Commission and the Financial Supervisory Service at the National Assembly in Yeouido, Seoul, on October 27, 2025. Photo by Kim Hyunmin

Governor Lee made this statement in response to a question from Lee Jeongmoon, a lawmaker from the Democratic Party of Korea, during the National Policy Committee audit at the National Assembly that afternoon. Lawmaker Lee pointed out that securities firms are offering not only free trading commissions but also waiving fees for related institutions such as the Korea Securities Depository.

Lawmaker Lee Jeongmoon indicated that securities firms have held events where they pay various fees to related institutions-such as the Korea Exchange or Korea Securities Depository-on behalf of investors, with benefits ranging from 400,000 won to 50 million won. He also explained that some securities firms have provided financial benefits exceeding 17 million won to a single individual through overseas stock commission events.

Governor Lee stated that he plans to expand the review to not only securities firms but also the virtual asset market. He said, "We are seeing side effects such as excessive trading and the spread of damages," and added, "With regard to unfair business practices, the situation is even more severe in the virtual asset sector, so we will conduct a comprehensive review by industry sector."

The issue of excessive competition among asset management companies in the exchange-traded fund (ETF) market was also raised. As competition in the ETF market intensifies, marketing competition has become overheated. In particular, the rapid increase in promotions through non-face-to-face channels such as YouTube and social media has raised concerns about consumer harm. In response to a question about whether a real-time monitoring system is in place, Governor Lee explained, "There are limitations in not being able to conduct real-time monitoring," and added, "We will prioritize inspecting advertising media with high consumer exposure, such as YouTube."