The Financial Supervisory Service (“FSS”) announced its plan to improve its system to enhance the predictability of regulatory procedures and to strengthen the protection of the rights and interests of officers and employees at financial companies. Key details are as follows:

1.   Enhanced predictability and transparency of financial regulation and audit procedures

 A.    Enhanced predictability of audit procedures

• At the beginning of every year, the FSS will give prior notification of a regular audit to relevant financial companies.

• When the audit period is extended, the FSS will notify the extended period at least one day prior to the closing of the audit (three days for regular audit).

B.    Fast processing of no-action letters

• For any matter that involves multiple departments, the to-be-established Expedited Process Committee (which will consist of relevant departments for discussion) will determine which department should take charge of the matter within five business days from the date of receipt of the no-action letter request.

• If the processing takes more than a certain period of time (e.g., 20 business days) after receipt, the FSS will refer the matter to the Committee for Deliberation on No-Action Letters.

• To ensure the timeliness and integrity of no-action letters, the FSS will engage IT experts as committee members when reviewing IT-related issues.

C.    Prompt notification of Financial Consumer Protection Evaluation Results

• The FSS will conduct the Financial Consumer Protection Evaluation during the third quarter of every year and announce the evaluation results by the end of November.
   

2.   Stronger protection of the rights and interests of officers and employees at financial companies

A.    Expanded right of defense for sanctioned parties

• From the date a party receives prior notice of contemplated sanction, the sanctioned party will be permitted to copy its responses to questionnaires, written confirmations, and statements already submitted to the FSS.

• From the time a party receives prior notice of contemplated sanction, the sanctioned party will be allowed to access materials that serve as evidence for the contemplated sanction.

B.    Improved operation of the Review and Sanctions Committee by minimizing the waiting time

• The FSS will reduce the waiting time for attendants by decreasing the number of agenda items to be reviewed.

C.    Stronger protection of personal information of employees subject to audit during the audit process

• Materials that are not used as evidence for audit will be returned or immediately destroyed in the presence of audit department employees upon closing of the audit.

• The FSS will establish regulations on the collection of digital data to ensure the fairness and transparency of the data collection process and protect the rights and interests of employees subject to audit.

[Korean Version]