BACKGROUND

The FSC temporarily banned (Jan.24) financial firms from selling their products by phone, SMS or e-mail until the end of March in order to protect financial consumers from any possible financial scam using illegally-circulated personal data.

Since then financial firms are conducting self-inspections due February 14 on their data security to submit a report to the FSS. Based on the result, the FSS plans to inspect financial firms deemed vulnerable to da ta breach in March.

FOLLOW-UP MEASURES

The FSC will thoroughly examine whether personal data held by financial firms are all obtained legitimately in order to ease financial consumers’ concern about possible financial fraud, while lifting the temporary ban on telemarketing as soon as the legitimacy is confirmed in a bid to ensure job security of telemarketers.

□ Telemarketing

Insurance companies are required to submit their CEOs’ confirmation to the FSS by February 7 that ensures personal data used for telemarketing is obtained legitimately from customers. After the FSS review the report, insurers will be allowed to resume telemarketing as early as late next week. If the confirmation submitted by insurers is found to be opposed to facts, the insurers will be faced with strict sanctions.

General agencies and card companies will be also allowed to resume telemarketing, presumably at the end of February, as soon as the FSS confirms that person al data used for such marketing activities are legitimately obtained.

□ Sales activities by SMS or e-mail

Financial firms will be allowed to sell their products by SMS or e-mail as soon as the FSS confirms the legitimacy of data collection and use and introduce relevant guidelines around the end of March. The FSS will offer financial firms guidelines on strict internal control and compliance procedure about customer data protection.

* Please refer to the attached PDF for details.