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Counseling on financial products is taking place at a commercial bank in Seoul. Yunhap news
“With the application of the Financial Consumer Protection Law (Monetary Law), it will take at least 40 minutes after the start of the consultation. If you have time, come back and we will be kindly guided.”
On the 25th, 43-year-old Mr. Kim, a clerk who visited the A bank branch in Seodaemun-gu, Seoul to join the pension fund, had to wait for about 30 minutes and then return. There were six or seven tens of thousands of people waiting at the bank, and customers consulting at four counters gave no sign of it happening.
Mr. Kim said: “I heard that the application of the prohibition law could be confusing, but I did not know that it would be so much.”
Even when signing up for a deposit, reading every manual was ‘sweat’
On the first day of law enforcement, financial companies and customers, mainly commercial banks, had a day of confusion.
The six principles of sale (principle of conformity, principle of adequacy, duty of explanation, prohibition of unfair conduct, prohibition of unfair requests, prohibition of false or exaggerated advertising), which have been applied to some financial products, have been extended to practically all financial products. The mandate to explain various products and publish manuals was greatly affected.
Customers who visited the branch complained that it took them approximately three times longer than usual to complete the financial product underwriting process.
Seomo (60), a housewife who visited a commercial bank in Jung-gu, Seoul to enroll in installment savings and fund products, said, “The bank employee reads all the letters in the manual, and it is the amount of documents that he gave what to take, “he said.” It is the first time that I go to a bank while I am in and out of the bank, “he said.
Visitors aren’t the only ones who have lost sweat all day. An employee at a branch of a commercial bank said, “Hopefully, it was the day the receipt date of the pension for the elderly, the loan maturity date and the company payday ended,” he said. More were needed, “he said. An employee at a bank’s head office said:” There were a number of calls from employees at branches across the country, “he said.
On the afternoon of the 25th, the first day of application of the Financial Consumer Protection Law (Money Soo Law), a notice is published about the temporary suspension of the new deposit and withdrawal book service in the STM (Smart Teller Machine ) installed at the KB Kookmin Bank Headquarters in Yeouido in Seoul. As of this day, the main commercial banks stopped selling non-face-to-face products and artificial intelligence (AI) services. Yunhap news
If the system is incomplete, the product is discontinued.
This was not the only confusion. The big banks even stopped selling some financial products, mainly in a remote way. This is because the kiosks (unmanned terminals) operated by the banks have not been able to provide the “duty to explain” system. From that day on, Woori Bank decided to stop selling new deposits and funds through kiosks and to issue new credit cards, and to resume them sequentially from April.
NH Nonghyup Bank has stopped selling new off-site subscriptions to pension savings fund accounts and selling all-in-one fund products by immobilizing various fund products. The timing of resuming sales is undecided. Shinhan Bank will also stop opening new bank books through kiosks for a certain period of time. A Shinhan Bank official said: “We are improving the kiosk system so that product manuals can be sent by email.”
The confusion adds to the discomfort of consumers, but the financial sectors and financial authorities are only fighting against “their fault”. In the financial sector, it is argued that the government was too late to decide on the ordinance to enforce the prohibition law and that there was not enough time to prepare the field.
A banking sector official said: “The scope of the preparation according to the executing decree, such as product descriptions, terms and conditions, computerization and internal regulations, is too broad.”
However, the financial authorities are accusing the banks of not preparing properly and of changing the timing of deciding on the enforcement decree as an excuse.
An official from the financial authorities said: “The law was already completed a year ago, and the industry participated in discussions when making enforcement ordinances or supervisory regulations.” There is no modification to the side, “he refuted.
Thick reporter [email protected]
Jeonghyun Kim reporter [email protected]
Kwak Joo-hyun reporter [email protected]
News directly edited by Hankook Ilbo can also be viewed on Naver.
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