BAI Audits FSS; Financial Sector on Edge

The Board of Audit and Inspection (BAI) has begun an audit into the Financial Supervisory Service's (FSS) practice of announcing 'interim inspection results' during its examination processes. This audit is a review to determine if the FSS's investigations are conducted transparently and fairly. The BAI is conducting a preliminary audit with the violation of legal principles regarding confidentiality during past inspection and sanction processes by the FSS as a key issue.

Disclosure of information before the end of an inspection is restricted by the Financial Services and Markets Act and related regulations. The FSS's interim announcements have been used as an exception, with prominent controversial cases including the inspection into allegations of illegal loans involving political figures during the 2024 general election period and the announcement of regular inspection results for KB, Woori, and Nonghyup Financials in January last year.

In its '2026 Business Plan' announced in February 2026, the Financial Supervisory Service stated that it would fundamentally limit interim inspection result announcements, allowing them only as an exception when there is a public interest need.