Internet-only banks will also be allowed to conduct face-to-face work in cases such as corporate loan reviews, management of loans in arrears, and collateral verification.
The Financial Services Commission said it held a regular meeting on the 1st and approved a plan titled "Rational adjustment of the scope of face-to-face work for internet-only banks."
Under the current Internet-only Bank Act, internet banks such as Kbank, KakaoBank, and Toss Bank are, in principle, required to handle all tasks non-face-to-face. However, as an exception, face-to-face work is allowed only when necessary to protect users and improve convenience. The Financial Services Commission (FSC) said it will maintain the non-face-to-face business principle of internet banks but will allow face-to-face work when it is deemed necessary to expand finance for corporations and protect consumers.
First, during corporate funding loan reviews, face-to-face work will be allowed when interviews with representatives or executives and employees are needed to assess the feasibility of the use of funds and the repayment plan. In addition, counseling debtors for the management and recovery of loans in arrears, consultations on debt adjustment, original-document checks to verify any forgery or alteration of documents submitted non-face-to-face, inspections of whether the loan was used for purposes other than stated, and checks of the status and value of collateral are also included within the scope of face-to-face work.
The three internet banks must report the details, methods, and scope of any face-to-face work to the Financial Services Commission (FSC) at least seven business days before carrying it out.
An official at the Financial Services Commission (FSC) said, "Through this plan, we expect to resolve legal uncertainty over unavoidable face-to-face work by internet banks, activate debt adjustment, expand funding for local small and medium-sized corporations and sole proprietors, and enhance consumer convenience."
The financial authorities will, through future regular examinations and other means, check whether internet banks comply with the limits on the scope of face-to-face work, and will take strict action if legal violations are found.