The Financial Supervisory Service (FSS) labor union expressed strong opposition to the establishment of a separate Financial Consumer Protection Agency, stating that it would go against consumer protection for the public. The union emphasized that the oversight of financial soundness and consumer protection should be organically linked to function properly. They warned that mechanically separating these functions could lead to conflicts, inefficiencies, and confusion due to overlapping inspections and sanctions.
The union criticized the move as a “job-sharing-style reform” rather than a reform for the public, noting that most of the financial industry and experts oppose the establishment of a separate agency. They also opposed the re-designation of the FSS as a public institution, highlighting that it was removed from this designation in 2009 to ensure its independence and autonomy in supervision.
The union expressed concerns that re-designating the FSS as a public institution could make it vulnerable to political influence and external pressure, potentially compromising the interests of financial consumers and the public in favor of political agendas. They identified several negative consequences of the organizational restructuring, including the dispersal of supervisory personnel, increased conflicts within the organization, decreased employee morale, increased burdens on financial companies, increased administrative costs, overlapping duties, and avoidance of responsibility.
In conclusion, the FSS labor union opposed the establishment of the Financial Consumer Protection Agency, stating that the gains from the proposal are outweighed by the losses, and stressed that the stability of the financial market and consumer welfare should take precedence over political interests.