Reason for proposal and main contents

The current law prescribes obligations to ensure the robust operation of financial product distributors and financial product advisors (hereinafter referred to as "financial product distributors or advisors"). In particular, it prescribes separate mandatory regulations on the preparation of executive/employee lists if financial product distributors or advisors perform door-to-door sales or telephone recommendation sales of financial products, and prescribes the imposition of penalties for violations thereof.

Meanwhile, the contact-less culture has recently expanded due to the development of digital finance and the COVID-19 pandemic, which in turn has activated the method of selling financial products to financial consumers through video calls. For example, in the case of insurance products, insurance solicitation and prescription sign-up have been regularized through video calls since the second half of 2023; while, in the case of banks, they intend to establish video counseling systems to be used as sales windows for insurance products.

In relation to this matter, non-face-to-face financial product sales methods, including video calls, are difficult to categorize as “telemarketing” under current laws. Therefore, there is an opinion that base regulations for non-face-to-face financial product sales methods should be introduced.

For reference, the Enforcement Decree of the Insurance Business Act regulates “telephone” and “Internet video apparatus capable of transmitting and receiving video and voice simultaneously” as distinct categories. Similarly, industry-specific model guidelines established after the revision of the Act on the Protection of Financial Consumers also provide more detailed distinctions than the law, regulating “telemarketing” and “video solicitation sale” separately.

Accordingly, the proposed revision aims to strengthen protection for financial consumers by newly establishing basis regulations in the current law to regulate video solicitation and other non-face-to-face sales methods using information and communication technologies in the same way as door-to-door and telemarketing sales methods of financial products (Article 16-2 and Article 21-2 of the draft).