The financial authorities are said to be discussing ways to strengthen advance notice for ad hoc inspections by the Financial Supervisory Service. Proposals under consideration include giving the financial companies subject to inspection an advance notice period and explaining the inspection objectives in detail. It is also reported that the Financial Services Commission would receive and review the advance notice to examine whether the inspection objectives are appropriate. The Financial Supervisory Service said early this year that it would push improvements across its inspection work, and this appears to be a follow-up step.
According to the financial authorities on the 2nd, the Financial Services Commission (FSC) and the Financial Supervisory Service (FSS) are discussing ways to improve the ad hoc inspection system at the "financial administration renewal task force (TF)" meetings that have been underway since early this year. The financial administration renewal TF was set up to overhaul administrative and supervisory work with the aim of strengthening the public nature and transparency of financial consumer protection functions.
The TF is reviewing a plan to require the FSS to give advance notice to financial companies when conducting ad hoc inspections unless the matter is urgent, and to clearly explain the purpose of such inspections. Under current law, when an ad hoc inspection is conducted, the financial company must be given advance notice a week prior, but notice is not required if it is determined that the inspection objective would be difficult to achieve due to destruction of materials or other reasons. The FSS even now notifies financial companies of the purpose of ad hoc inspections, but only in broad terms such as "financial consumer protection," without disclosing specific details.
Discussions are also underway for the FSC to receive shared access to the advance notice. The aim is to examine whether an ad hoc inspection is truly necessary and whether it imposes an excessive burden on financial companies. As lawsuits contesting sanctions based on FSS inspections are increasing, the idea is also to review the validity of the inspections. At present, unless a specific legal interpretation is needed or the matter has a major impact on the industry, the FSS does not share with the FSC whether an ad hoc inspection will proceed.
Financial Supervisory Service Governor Lee Chan-jin announced the "2026 FSS work plan" in Feb., saying that to improve inspection procedures, the agency would implement measures such as restricting the release of interim inspection results and extending the advance notice period for ad hoc inspections. An FSC official said, "We are continuing discussions in a way that strengthens cooperation with the FSC, as long as the purpose of the FSS's ad hoc inspections is not undermined."