Rep. Yoo Dong-su: 'If rate decisions are disclosed, consumers can see and judge for themselves'

FSS chief Lee Chan-jin says agency is preparing measures to strengthen consumers' right to make informed choices, including disclosure

Financial Supervisory Service Director General Lee Chan-jin (left) answers lawmakers' questions at a National Assembly audit of the Financial Services Commission and the FSS by the National Policy Committee on Thursday. At right is FSC Chairman Lee Eok-won. [Yonhap]
Financial Supervisory Service Director General Lee Chan-jin (left) answers lawmakers' questions at a National Assembly audit of the Financial Services Commission and the FSS by the National Policy Committee on Thursday. At right is FSC Chairman Lee Eok-won. [Yonhap]

Financial Supervisory Service Director General Lee Chan-jin responded positively Thursday to a ruling party lawmaker's call for banks to publicly disclose how they calculate their lending rate markups.

Rep. Yoo Dong-su, chairman of the National Assembly's National Policy Committee, raised the issue at the committee's national audit of the Financial Services Commission and the FSS. "Financial authorities have no power to tell banks how much of a markup to charge," Yoo said. "But when I think about what we can at least do, I wonder whether we could require banks to disclose their interest rate decision-making process."

"If that information is disclosed, won't the people who use financial services be able to see it and make their own judgments?" Yoo added. In response, Lee said the agency was "preparing measures to strengthen consumers' right to make rational choices, including through disclosure."

When Yoo pressed further, asking whether the FSS would "specifically review a disclosure regime for the rate-setting process," Lee replied, "We will prepare."

Also at the audit, Democratic Party of Korea lawmaker Min Byeong-deok said banks were cutting their preferential rates even as they appeared to lower their markup rates, despite the enactment of a Banking Act amendment barring the inclusion of legal costs in lending rates. Min called on the FSC and the FSS to "conduct a joint special inspection."

FSC Chairman Lee Eok-won said in response that he had assumed the process was handled automatically because a system had been put in place to prevent legal costs from being charged. "I will check with the Financial Supervisory Service on the current situation," he said.


hyuk@heraldcorp.com