The FSS will reorganise its consumer protection department to boost supervision of high-risk financial products, and establish suptech and regtech teams.
South Korea FSS (Financial Supervisory Service) has unveiled a reorganisation plan aimed at enhancing consumer protection in the financial sector, reports Korea Times.
Under the plan, the FSS will expand its consumer protection department from six divisions and 26 teams, to 13 divisions and 40 teams. Following the reshuffle, the consumer protection department will have 356 employees, up from 278 currently.
Of the 13 divisions, seven will focus on preemptive damage prevention, while the other six will handle disputes, petitions and take part in investigations of financial firms alongside related supervisory departments.
The reshuffle is aimed at enhancing consumer protection and supervisory functions, particularly in relation to high-risk financial products, in the wake of last year’s revelations of improper sales of certain DLFs (derivatives linked funds) by banks and securities firms.
“We are bolstering the consumer protection department to boost supervision for the design and sales process of high-risk financial products,” FSS Governor Yoon Suk-heun told reporters on Thursday (23 January) .
The FSS is scheduled to announce penalties against Woori Bank and KEB Hana next week.
Under the reorganisation plan, the FSS will also establish a new “SupTech Innovation” team to support the digital transformation of financial supervision, and a “RegTech” team to supervise information technology at financial firms.
The FSS will also integrate its international cooperation and financial hub departments to enhance efficiency. A new team will be set up under the international department that will help local financial firms expand into Southeast Asia.
Additional reporting from Korea Herald.