Seoul: The Financial Supervisory Service (FSS) on Monday unveiled a comprehensive restructuring plan aimed at bolstering consumer protection, which includes the establishment of a new division that will report directly to its governor. This initiative is part of an effort to enhance oversight and ensure more robust consumer safeguards across financial sectors.
According to Yonhap News Agency, the existing consumer protection office will be upgraded with supervisory functions and reorganized into a division that will have purview over consumer protection across all sectors. This marks the first significant restructuring since Lee Chan-jin assumed the role of FSS governor in August.
The newly envisioned division, which will report directly to Governor Lee, is set to fortify oversight concerning the design, approval, and sales processes of financial products. Additionally, it will have a mandate to support consumer alerts, ensuring that consumers are adequately informed and protected.
To further strengthen consumer protection measures, a governor-level advisory committee will also be established. This committee will comprise experts from academia and consumer groups, tasked with advising on consumer protection policies and evaluating current consumer protection practices.
The FSS anticipates that these changes will lead to improved accountability, better coordination across different sectors, and a more efficient enforcement of consumer protection measures. For the insurance sector, which is responsible for a significant number of consumer complaints, dispute resolution and the review of basic insurance documents will continue under the consumer protection office.
Moreover, the FSS has plans to set up a special investigative task force dedicated to handling financial crimes that impact consumers, further underscoring its commitment to safeguarding consumer interests.