Seoul, Nov 20 (NationPress) The head of the nation's financial oversight body emphasized the necessity for credit card companies to intensify their efforts in safeguarding customer data, referencing a recent security breach incident. During a conference with executives from credit card and finance companies, Lee Eog-weon, chairman of the Financial Services Commission (FSC), announced that his agency will impose strict penalties for any lapses in consumer protection, as reported by Yonhap news agency.

This call to action follows the disclosure by Lotte Card Co., the fifth-largest credit card issuer in South Korea, which in September admitted to a hacking incident that compromised the personal information of approximately 3 million clients.

Earlier, the FSC had signaled that it would take robust actions against any infractions related to Lotte Card, promising to levy unprecedented fines on the issuer if significant violations were identified.

Lee remarked that the data breach has highlighted a troubling complacency among card companies in terms of consumer safety. “Credit card firms have been negligent in their duty to protect consumers while prioritizing cost efficiency and other factors,” he stated.

Additionally, the regulator stressed that card companies must lower commission rates for small businesses and consumers with lower credit ratings.

In a related note, South Korea's customs authority announced plans to streamline paperwork and expedite the customs clearance process for imports, aimed at reducing regulatory burdens for local businesses. This initiative, currently under administrative review, will simplify the procedures for re-importing returned goods, as stated by the Korea Customs Service (KCS).

Previously, businesses had to provide documentation if the combined value of multiple items in a single declaration surpassed $150. The proposed changes will only necessitate this documentation when each item category exceeds $150, thereby easing the load for companies frequently re-importing several products simultaneously, according to the KCS.

Moreover, items repaired in countries with which South Korea has a free trade agreement (FTA) will no longer require related documents upon return, as per KCS announcements. The KCS anticipates that these adjustments will lead to reduced logistics expenses and less strain on businesses.