Saemaul Geumgo has proactively responded to the introduction of the Financial Consumer Protection Law (FCP Law). Ahead of the law's mandatory application, the organization is voluntarily enhancing its systems to build consumer trust.
According to the financial sector on July 14, Saemaul Geumgo recently completed a consultation aimed at preparing for the implementation of the FCP Law in the mutual finance sector.
Last year, Saemaul Geumgo engaged the law firm Yulchon for consulting on the FCP Law to strengthen consumer protection. Over the past six months, the organization gathered feedback from individual credit unions and relevant departments to assess and improve governance, internal regulations, sales procedures, complaint systems, key performance indicators (KPIs), and training.
The FCP Law, which took effect in March 2021, aims to protect the rights of financial consumers. It outlines six key sales principles, including the right to withdraw applications, the right to terminate illegal contracts, compensation for damages, and dispute resolution.
Currently, most institutions in the mutual finance sector, excluding credit unions specifically defined in the FCP Law, are not subject to its provisions. However, Saemaul Geumgo explained that it has established relevant systems in anticipation of potential future implementation and to enhance consumer protection.
Saemaul Geumgo has developed financial consumer protection guidelines and organized the core sales principles under the FCP Law, including suitability and appropriateness principles and disclosure obligations. It has also revised its advertising review manual and internal control procedures.
Additionally, the organization has incorporated consumer rights, such as the right to withdraw applications and the right to access information, into the sales processes for deposits, loans, and insurance products. It has introduced a comprehensive review process during loan assessments to verify repayment capacity and transaction purposes, thereby enhancing the appropriateness of product recommendations.
A Saemaul Geumgo official stated, "Regardless of the law's applicability, we will proactively establish a consumer protection system to enhance trust among financial consumers."
* This article has been translated by AI.
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