Financial Supervisory Service Requested Blocking, But Over 9,000 Illegal Financial Information Cases Remain Unaddressed

Korea Communications Standards Commission's Deliberation Virtually Halted; Assemblyman Lee In-young Points Out "Negligence in Preventing Spread of Damage"

Illegal Financial Services (CG) [Provided by Yonhap News TV]

It has been revealed that over 9,000 cases of illegal financial information are pending deliberation at the Korea Communications Standards Commission (KCSC), despite requests for blocking from the Financial Supervisory Service (FSS).

With the KCSC's functions effectively halted, illegal financial advertisements targeting vulnerable populations are rampant.

According to data submitted by the FSS and the KCSC to Assemblyman Lee In-young of the Democratic Party of Korea on the 27th, there were 9,129 cases of illegal financial information awaiting deliberation as of the 10th of this month, following requests from the FSS.

The KCSC explained that the "Telecommunications Deliberation Subcommittee (which deliberates online content, etc.) has been suspended since May 2nd due to delays and vacancies in its committee composition."

The KCSC is composed of a total of nine members, including the chairperson, but currently, only two members remain due to vacancies, including the absent chairperson.

Due to the lack of a quorum, not only plenary sessions but also most subcommittees cannot be convened.

With deliberations suspended, even illegal financial information deemed problematic by financial authorities is being exposed without any defense to low-income individuals and vulnerable groups in urgent need of cash.

Illegal financial information for which financial authorities request deliberation includes advertisements for unregistered moneylenders, loan arranging services, sale of illicit bank accounts, and arrangements for cashing out credit card or mobile phone payments.

The issue is exacerbated by the recent surge in illegal lending, driven by high inflation and high interest rates.

The number of reports and consultations received by the FSS's 'Illegal Financial Damage Reporting Center' reached 5,554 by April. At this rate, it is projected to reach approximately 16,000 cases on an annual basis.

This level is expected to surpass last year's figure of 15,397, which was the highest in about ten years.

Amidst this surge in damage from illegal lending, the government has implemented a law that exempts individuals from the obligation to repay principal and interest for illegal loan contracts made at interest rates exceeding three times the legal maximum or through violence, threats, sexual exploitation, etc.

However, Assemblyman Lee In-young pointed out, "It is difficult to achieve a fundamental solution without blocking the exposure of illegal advertisements themselves," emphasizing that "illegal financial advertisements are a trap targeting vulnerable populations and the beginning of a crime."

He added, "The current situation, where KCSC deliberations have been suspended for an extended period, is tantamount to allowing the spread of damage," and urged for "prompt normalization of deliberations, along with institutional improvements such as the introduction of electronic deliberation."

The KCSC responded, "Given the current situation of delayed committee composition, we are responding to illegal financial information through measures such as self-regulation by service providers," and added, "We plan to expedite the processing of deliberation requests from the FSS once deliberations commence." Yonhap News