Korea to set up consumer financial protection agency

The Korean financial regulator said Thursday that it would establish an independent state-run agency responsible for consumer protection in the financial sector next year, as part of the government’s plan to revamp the financial regulatory system and beef up consumer protection functions.

The financial consumer protection body will enforce rules for the entire process of financial consumption, including the sale of financial products and remedies for financial losses, according to the Financial Services Commission.

Under the current rules, the Financial Supervisory Service is in charge of inspecting and overseeing financial institutions but plays a peripheral role in protecting the rights of financial consumers.

“The recent change in the global financial market highlighted the need for more effective financial consumer protection measures as consumers face more sophisticated and complex financial markets,” the FSC said. “The government will build and maintain consumer confidence and trust in the financial market.”

The FSC said the new consumer agency will examine and monitor banks and non-bank companies, and collect and track consumer complaints to draw up an assessment test of consumer protection for financial companies. (Yonhap)