The Financial Supervisory Service (FSS) said Monday it will hold a public forum on Sept. 17 in Seoul with about 250 participants, including consumers, financial industry officials, representatives from related institutions and outside experts.
The event comes as investor protection has moved to the center of the regulatory debate following the controversial introduction of leveraged products tied to individual stocks.
Their rapid uptake among retail investors raised questions over whether warnings, education and other safeguards were sufficient for products capable of magnifying losses as well as gains.
The event will review progress under a reform plan introduced on Dec. 22 last year that focuses on preventing consumer harm before it occurs, rather than addressing losses afterward.
The plan covers investment, insurance and other financial products from their design and sale to how they are managed after purchase. It aims to give consumers clearer information about risks such as potential investment losses and limits on insurance coverage, while providing early warnings when stock-linked products are at risk of principal losses.
It also includes measures to combat illegal private lending, voice phishing, insurance fraud and investment scams, while improving transparency around loan rates and other financial practices.
At the first session, the FSS will review the measures it has taken so far and the progress made. Financial firms will share examples of how they have improved the way financial products are developed and sold and strengthened internal controls.
Experts will assess those efforts and offer recommendations on how the regulatory framework should develop further.
The second session will focus on remaining challenges. Panelists will include members of the FSS' Financial Consumer Protection Advisory Committee, as well as representatives from the legal community, media, civic groups and the public.
Participants will also be invited to share their experiences and raise questions directly with FSS executives during an open discussion.
The forum is intended to give the regulator a clearer picture of consumers' concerns and priorities as it considers what should come next.
Anyone can apply to attend from Aug. 31 through Sept. 8, with attendees selected at random.
The two-hour event, scheduled from 2 p.m. to 4 p.m., will be livestreamed on the FSS' official YouTube channel. Presentation materials, panel discussions and the question-and-answer session will later be available on its website.
The FSS said it will continue seeking feedback from consumers as it works to strengthen protections across the financial sector.
AJP Takeaways
• The Financial Supervisory Service will hold a public forum on Sept. 17 to review its consumer protection efforts and seek feedback on future measures.
• The regulator's plan aims to prevent harm before it occurs by strengthening protections around financial products, including clearer risk information and earlier warnings about possible losses.
• About 250 participants, including consumers, financial industry officials and outside experts, are expected to attend, with applications open through Sept. 8.
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