The financial watchdog plans to release a list of financial firms that have neglected guidelines for consumer protection, officials said Monday, in a name-and-shame move to better protect consumers.
The list, which is expected to be published by the Financial Supervisory Service (FSS) as early as this month, is aimed at bolstering efforts to hold financial firms more accountable for any misdeeds.
The list will include financial firms that have received warnings from the FSS for selling deceptive or abusive products, according to FSS officials.
Also, it will include financial firms that have made little efforts in providing proper financial information to elderly and vulnerable people.
The list will be updated every year, and financial firms with the lowest grade will start facing punishments next year, FSS officials said.
FSS Gov. Yoon Suk-heun has warned some banks and various financial institutions against selling financial services and products to consumers using "wrong information."
Rather than selling products that can help consumers, some banks and financial institutions focus on irresponsible sales of products that boost their own profits, FSS officials said.
Last month, the FSS set up a task force to reform the financial watchdog and improve consumer welfare.
The task force has discussed measures ranging from realigning the regulator's structure to better protect consumers from illicit sales of financial products and services to strengthening its supervisory role. (yonhap)