Lee Chanjin, Governor of the Financial Supervisory Service, criticized domestic securities firms for prioritizing the expansion of short-term commission income over investor protection.
On December 18, during a financial situation review meeting held at the Financial Supervisory Service in Yeouido, Seoul, Governor Lee stated, "There are serious concerns that, as competition among securities firms to expand their market share in overseas securities brokerage intensifies, they are focusing solely on short-term commission income at the expense of investor protection."
He emphasized, "Securities firms are seeing significant annual profit growth from transaction and foreign exchange fees. In contrast, individual investors are experiencing a decline in profits compared to the previous year, with many incurring losses, and substantial losses are evident in overseas derivatives investments, which demonstrates this issue."
He added, "We will expand the scope of the ongoing inspection of securities firms’ overseas investment practices, and if any issues are identified, we will immediately switch to on-site inspections. In cases of illegal or improper conduct, such as exaggerated advertising that misleads investors, investment recommendations that do not match investors’ risk tolerance, or insufficient explanations of investment risks, we will take the strictest measures, including suspending overseas stock business operations."
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