Consumer advocacy agency to call on head of financial watchdog to step down
The Financial Consumer Agency has been growing increasingly frustrated with the lack of action from the country's financial watchdog in dealing with the massive losses incurred by the tens of thousands of people who invested in the cash-strapped Tong Yang Group.
The Financial Supervisory Service has already been under fire for failing to properly monitor the debt-ridden Tong Yang Group.
The country's 38th largest conglomerate sold a massive amount of high-risk corporate bills and bonds, mostly to individual investors, to repay its debt.
The Financial Consumer Agency says it has repeatedly asked to meet with the head of the FSS to create a relief plan for the nearly twenty-thousand investors who have filed for losses with the FCA.
After failing to get any response,.. the FSA vowed on Monday to launch a campaign calling on the head of the FSS, Choi Soo-hyun, to step down.
The FSS maintains that it is doing all it can to deal with the Tong Yang crisis.
Since last Friday, the watchdog has been analyzing more than 8,000 complaints filed by investors holding Tong Yang debt.
Around forty-thousand investors have fallen victim to the Tong Yang crisis, and with no relief plan announced, their concerns are growing.
"Most of these people have invested their marriage funds, retirement savings and severance pay. It's hard to even imagine the pain that these people are going through. One widowed investor has even lost all of her husband's insurance money."
Tong Yang Group owes retail investors 2 trillion won, or roughly one.eight billion U.S. dollars, and about 840-thousand U.S. dollars to financial firms, as of the end of last month.
Yoo Li-an, Arirang News.
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