FSS Governor Lee Chanjin Announces 2026 Work Plan
Improving inspection and sanctions processes...Preventive consumer protection
Financial Supervisory Service (FSS) Governor Lee Chanjin has announced plans to strengthen internal reforms across supervisory administration, including restricting the release of interim inspection findings on financial companies. He also stressed that financial consumer protection will be shifted from a post-crisis, ex-post response to a preemptive, preventive framework, and that the FSS will strictly crack down on market-disrupting practices and livelihood-related financial crimes targeting low-income and vulnerable groups under a "zero-tolerance principle."
Restrictions on releasing interim inspection findings... More diverse private members on the Sanctions Review Committee
On the morning of the 9th, at the FSS headquarters in Yeouido, Seoul, Governor Lee announced the "2026 FSS Work Plan" and stated, "In principle, we will restrict the release of interim inspection findings and improve the overall inspection process, for example by extending the prior notification period."
In this work plan, the FSS presented internal reforms to realize world-class supervisory services as its first priority task. As a rule, the release of interim inspection findings will be restricted, and exceptions will be allowed only when there is a clear public-interest need, under procedures to be established in consultation with the Financial Services Commission. This measure takes into account the controversy over legality that arose when interim results were disclosed before inspections were completed during the tenure of former Governor Lee Bokhyun. The FSS will extend the prior notification period for ad-hoc inspections and explicitly state in its criteria for the protection of rights and interests that sanctioned parties have the right to request a hearing with the head of the inspection department. In addition, the system will be upgraded so that when the responsible examiner enters each processing stage of the inspection results, financial companies are automatically notified, thereby enhancing procedural transparency.
The sanctions process will also be revised. For minor violations, sanctions will be waived on the condition that the parties complete compliance training, and the composition of private members on the Sanctions Review Committee will be diversified beyond the current legal-professional-centered structure. The FSS will also build an integrated licensing system that digitizes the entire process of licensing and registration work for financial companies.
In parallel, the FSS will pursue internal management innovation, including disclosing detailed breakdowns of institutional heads' business promotion expenses and strengthening management disclosure through the Alio system.
Preemptive consumer protection... "Zero-tolerance principle" for livelihood-related financial crimes and market-disrupting practices
Financial consumer protection will also be further strengthened. To this end, the FSS plans to raise the level of consumer protection across the entire life cycle of financial products, from design and manufacturing to review, sales, and post-management, and to shift to a risk-based consumer protection supervisory framework focused on preemptive prevention rather than ex-post remediation. In preparation for the introduction of "one-sided binding force," under which financial companies will be required to comply with decisions of the Dispute Mediation Committee, an organization under the FSS, the FSS will establish clear criteria for referring cases to the committee and will further advance the dedicated consultative framework for indemnity health insurance to ensure swift dispute resolution.
Responses aimed at establishing sound market order will also be strengthened. Governor Lee said, "We will conduct intensive inspections of potential consumer harm issues, such as the sale of high-risk financial investment products," adding, "We will promptly investigate suspected unfair trading related to investment banking (IB) business and political theme stocks, and we will also seek to shorten the cycle of accounting reviews and inspections for major listed companies." He went on to emphasize, "We will respond under a zero-tolerance principle to livelihood-related financial crimes targeting low-income and vulnerable groups, and to conduct that undermines the basic order of the market."
In addition, the FSS will review the independence of the boards of directors of banking groups and banks, as well as their chief executive officer (CEO) appointment procedures, and where shortcomings are identified, pursue institutional improvements through the Task Force (TF) on improving financial company governance structures, with the aim of fostering a sound management culture.
Financial market risk management will also be reinforced. The FSS plans to establish a framework for monitoring and rapid response to major risks such as abrupt exchange rate fluctuations, and to ensure stable management of household and corporate debt by encouraging compliance with overall household debt targets and improving corporate restructuring systems. It will also work to reduce distressed real estate project financing (PF) exposures, including by encouraging the sale of non-performing loans. The FSS further plans to push for improvements to capital regulations to promote productive finance.
Governor Lee stated, "We will closely monitor potential risk factors arising from the increase in household debt, the rise in lending rates, and external factors, and build a system that enables immediate response," adding, "We will ensure that necessary funds are supplied to the right places at the right time, so that finance can support the real economy."
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