The Financial Supervisory Service plans to unveil a series of measures to protect consumer rights and ease the burden of low- and middle-income households, starting next week.
Among other things, the financial regulator is considering putting pressure on commercial banks to slash a variety of service fees including those on transactions via automated teller machines.
Attention is being paid to whether financial companies will resist the policies of intervening in the market.
The consumer protection measures, initiated by FSS Gov. Kwon Hyouk-se, will be applicable to sectors such as banking, insurance, brokerage and credit card, regulatory officials said.
The officials said the banking sector measure will be announced first ― as early as next Tuesday.
Ordinary households have been suffering high service fees on their money transfers or withdrawal via ATMs and the financial watchdog has been accused of negligent oversight over the practice.
Some banks charge fees on money transfers via ATMs at 500 won per transaction, while some banks charge 1,500 won to 2,000 won.
Among the other measures for banking consumers will likely be the cutting of service charges for Internet banking and overdue interest rates on deposit-collateralized loans.
For the insurance sector, the FSS is set to unveil measures later next week, which will involve slashing payments to insurance salespeople.
The service fees, or payments, to salespeople have been linked to higher insurance premiums for policyholders, or customers.
Regulatory measures to protect retail stock investors are expected to come in mid-September.
Many brokerage firms have been criticized for offering interest rates less than 1 percent on customers’ deposits for investments, while the firms enjoyed interest rate of more than 3 percent by entrusting the money with the Korea Securities Finance Corp.
Others will include actions against fees on stock-collateralized loans and wrap account products.
Measures for credit card holders may be instructing credit card companies to lower fees to be charged on member stores for customers’ credit card usage.
Senior regulatory officials have taken a cautious approach toward the service fee issue as there is a possibility that the FSS could face criticism if it engages in intervention in the market.
By Kim Yon-se (
kys@heraldcorp.com)
