Several Guidelines to Prevent the Recurrence of the Credit Card Chaos in 2003

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Several Guidelines to Prevent the Recurrence of the Credit Card Chaos in 2003

 

The FSC plans to adopt regulatory changes that will stabilize credit card industries and its customers. Recently, the credit card industry in South Korea seems to be overheating, which remains people of the worst chaos of cards in 2003. In 2003, domestic card companies neglected risk management while focusing on expanding their size. Also, there was tremendous competition to get credit cards in the hands of consumers by the issuers. Eventually, it resulted in creating millions of credit delinquents. Card issuers faced a liquidity crisis because of snowballing overdue card bills and had to be rescued by the government through public funds. Since then, people took huge lessons from this painful experience and have made their best efforts to become more sound and stronger by employing strict credit risk management strategies. However, the credit card market tends to heat competition again and there is a possibility that the nation will see the number of credit defaulters surge. Also, the credit card companies spend more capital on marketing and sales than their sound risk management. Therefore, the FSC suggests several rules to reform and stabilize the current market system. Here are some measures.

 

1) To induce the sound marketing competition

 

Make card companies provide reasonable optional services: When designing a new product or a card, card companies are required to analyze a profit structure carefully so that providing services does not lead to a poor risk and the loss.

Strengthen monitoring marketing competition condition: Through regular market monitoring, the FSC strengthens market monitoring and orders companies to correct unsound competitions immediately in order to prevent the critical risk before it occurs.

 

2) To strengthen the strict check for the illegal sales activity

Establish the sound sales activity: The FSC sets several rules for sales activity, which state clearly details of sales activity regulations. Also, it should be used to train salespersons and to control the internal system.

Check companies’ sales activity regularly: The monitoring will be four times a year assigning financial specialists, which was once a year before. Also the regulatory expands and improves the strength and the influence for the market.

Strengthen restrictions for illegal card sales activity: There will be a great amount of fine for providing unreasonable free gifts and sales on the street. Also, the FSC requires credit cards companies to be responsible for monitoring sound sales themselves.

 

3) To reinforce risk management for cards loan

Raise the level of maintenance cost: By raising the level of maintenance cost, it is expected for companies to have the ability to prevent the large loss.

Strengthen the risk management and prevent unhealthy card loan sales: Setting an example of card loan, sales and the risk management prohibits card companies from unsound sales activities.

 

Although the situation is not same as the worst chaos of cards in 2003, marketing cost is rising and sales activities was highly competitive, which raises the concern recently. Therefore, the FSC suggests several measures above in order to prevent the chaos in 2003 again. Moreover, they are willing to take strong steps for excessive competitions.

 

 

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2 thoughts on “Several Guidelines to Prevent the Recurrence of the Credit Card Chaos in 2003

  1. 10:11 PM 7/22/2011 mEm0 [ri’thmn house incorporated (g2h)] hehehe…Group tells PNoy: Sign climate-change blueprint now 07/07/2011 09:04 PM? Cebu gets Asean recognition? China makes nuclear power breakthrough? Act now on climate, no need to wait: top UN scientist… key known fact topmost essential integral hehehe-cheers… 12 most fascinating fountains on earth the most beautiful waterfalls in the world best secret islands on earth etc… napakasayang nito pag ang natural disasters kill us all wala nang mag-appeciate nito and one more thing lumulubha ang hulga nga dili na kapoy-an og tao ang mother nature-Earth apan na-a pay pagasa naa pay mahimo ang tao bugtong pangibra panimbang panagang sa maong nagka-dako’ng hulga pagpatuman ra gayod sa bala-od under the capablewise legitimacy-duly constituted authority no matter what it takes in any form manner or type pangalawang digma-an sa mundo at all fronts’ escalation etc… the real deal and gamble… reminder hey you all be better and be useful… 7.19.2011 6:04 AM… finance and investments the gem is a gem an acceptable nature of banking reserved etc… be warned and be cautioned for proper guidance on the following offcial-legitimate documents’ points of authentification… topmost problem confronting humanity is the growing threat of mankind’s existence as nature-Earth’s frequency system and order much too strained creating alarming imbalances of its sound symmetric structure sooner placed our planetary solar system in the state of compression… upholding the law under authority capable-supreme still alive and kicking rene’ ortiz cruz discoverer the gem of cebuano culture ’81 of the science technology and engineering of the nucleus MO atomic construction dimension do re mi… state of anything founded new-world’s music language for the best interest ever of mankind and the power of Zero of nature-Earth supreme still is the sole resolve so far available for mankind… ancestral philippine republic of the kingdom islands-archipelago of PUNTA 3rd millennium pre-malayan peninsula… renecruzyortiz and links-FACEBOOK charity wake-up call guide specially to all of you hehehe-cheers… G20 dimension parallel on monetary value and imbalances etc… hehehe-cheers be careful test and go only for what is genuine-authentic beware of the continuous clashes’ effects among the different stand points of the negation of the negation deities…

  2. 10:11 PM 7/22/2011 mEm0 [ri’thmn house incorporated (g2h)] hehehe…Group tells PNoy: Sign climate-change blueprint now 07/07/2011 09:04 PM? Cebu gets Asean recognition? China makes nuclear power breakthrough? Act now on climate, no need to wait: top UN scientist… key known fact topmost essential integral usab kinahanglanon kaayo kini ni-ini’ng mao’ng ongoing study and research-Environment, not just genetics, at play in autism… hehehe-cheers… 12 most fascinating fountains on earth the most beautiful waterfalls in the world best secret islands on earth etc… napakasayang nito pag ang natural disasters kill us all wala nang mag-appeciate nito and one more thing lumulubha ang hulga nga dili na kapoy-an og tao ang mother nature-Earth apan na-a pay pagasa naa pay mahimo ang tao bugtong pangibra panimbang panagang sa mao’ng nagka-dako’ng hulga pagpatuman ra gayod sa bala-od under the capablewise legitimacy-duly constituted authority no matter what it takes in any form manner or type pangalawang digma-an sa mundo at all fronts’ escalation etc… the real deal and gamble… reminder hey you all be better and be useful… 7.19.2011 6:04 AM… finance and investments the gem is a gem an acceptable nature of banking reserved etc… be warned and be cautioned for proper guidance on the following offcial-legitimate documents’ points of authentification… topmost problem confronting humanity is the growing threat of mankind’s existence as nature-Earth’s frequency system and order much too strained creating alarming imbalances of its sound symmetric structure sooner placed our planetary solar system in the state of compression… upholding the law under authority capable-supreme still alive and kicking rene’ ortiz cruz discoverer the gem of cebuano culture ’81 of the science technology and engineering of the nucleus MO atomic construction f3s3 dimension do re mi… state of anything founded new-world’s music language for the best interest ever of mankind its existence and the morality of power of Zero of nature-Earth supreme still is the sole resolve so far available for mankind… ancestral philippine republic of the kingdom islands-archipelago of PUNTA 3rd millennium pre-malayan peninsula… renecruzyortiz and links-FACEBOOK charity wake-up call guide specially to all of you hehehe-cheers… G20 dimension parallel on monetary value and imbalances problem resolves etc… hehehe-cheers be careful test and go only for what is genuine-authentic beware of the continuous clashes’ effects among the different stand points of the negation of the negation deities…

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