The Financial Supervisory Service announced on the afternoon of December 15 that it held a workshop aimed at strengthening internal control capabilities for loan product sales agents and intermediaries. The event was attended by about 190 people, including representatives from six financial industry associations, as well as chief consumer protection officers or internal control officers from loan brokerage firms. Through the workshop, participants shared recent key issues related to regulatory compliance and examples of deficiencies found during inspections, and were urged to strengthen internal controls with a focus on consumer protection.
The Financial Supervisory Service advised that when advertising loan brokerage services, firms must comply with procedures such as prior review by compliance officers, clearly state all legally required information, and refrain from any actions that could mislead consumers. When conducting online loan consultations via blogs or chat platforms, firms were instructed to present identification showing their affiliation and name, thereby informing consumers that they are registered operators.
In addition, the Financial Supervisory Service emphasized that when collecting and processing personal credit information, only the minimum necessary personal data should be collected and processed lawfully and legitimately, with prior consent obtained within the required scope. When comparing or recommending products online, firms were cautioned not to distort product arrangement criteria for the benefit of intermediary commissions, and to ensure that products unrelated to the consumer’s search results are not displayed.
The results of inspections of loan brokerage firms were also shared. Although regulations require regular management and supervision of loan consultants’ compliance with laws, some firms lacked specific internal standards and procedures, and in some cases, actual inspections were not conducted. In addition, some firms did not record specific usage and disposal dates in the management ledger for advertising materials approved by banks. When checking for unapproved online advertisements, some firms limited their checks to simple searches of the company name on portal sites, highlighting the need to improve the effectiveness of monitoring, such as by monitoring apartment resident communities. While regular training for loan consultants is reportedly conducted, there were cases where no records or evidence were kept, making it impossible to confirm whether the training actually took place.
The Financial Supervisory Service also provided guidance on inspection and sanction procedures, as well as systems for protecting the rights and interests of executives and employees, taking into account that many loan brokerage firms are unfamiliar with these processes.
Park Jisun, Deputy Governor of the Financial Supervisory Service, stated, "For the protection of financial consumers, the soundness of the loan market, and sustainable growth, I urge you to establish systems to prevent conflicts of interest with consumers, ensure sound business practices, and strengthen professional expertise."
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