Dissatisfaction

Kookmin, Citi, SC receive most complaints

By Kim Tae-jong

KB Kookmin Bank received the most complaints from customers among lenders in the first half of this year, data revealed Wednesday.

There were 1,164 complaints filed against KB Kookmin Bank, followed by Woori Bank with 981 and Nongyup Bank with 938, according to the Financial Supervisory Service (FSS).

Complaints can be filed with the FSS by customers in the course of seeking settlements from unfair practices at financial firms.

Industry insiders said the numbers can be used as a barometer for the quality of customer service.

Although Kookmin received the most complaints, its complaint ratio per 100,000 customers is lower than other lenders.

Consumer complaints per 100,000 customers is highest at Citibank Korea at 5.9, followed by Woori and National Federation of Fishery Cooperatives, also known as Suhyup, with 5.6 each and Standard Charted Bank Korea with 5.4.

“It is not fair to simply compare the number of customer complaints and complaints ratios to judge the quality of service,” an official from Woori said. “The number includes repeated requests, minor complaints and questions, and we seem to have more complaints than other lenders because we received complaints on credit card services, which are calculated separately at other lenders.”

But the FSS said the number of complaints overall against local financial firms including banks and insurers grew this year, as customers are becoming more conscious about financial products and services amid the prolonged economic slump.

“Customers want to protect their rights, and those in low-income brackets have suffered financial hardships in the sluggish economy,” an FSS official said. “We believe such factors have led to the increase in complaints against financial firms.”

Consumers filed a total of 47,494 complaints against financial services firms in the first half of this year, up 27.7 percent from the same period last year.

Complaints against banks stood at 22,074, up 43.8 percent from 2011.

The FSS said the hike came after the recent secondary banking crisis, in which more than 20 savings banks had their business operations suspended.

Insurance companies also suffered increasing complaints with 23,456.

Among life insurers, Samsung Life Insurance and Kyobo Life Insurance, the nation’s two largest players, received the most complaints of 1,502 and 1,341, respectively.

But Hyundai Life Insurance suffered the highest complaint ratio with 33.6 complaints per 100,000, followed by PCA Life Insurance at 32.2 and KDB Life Insurance with 31.4.

Of non-life insurance firms, Samsung Fire and Marine Insurance reported the largest number of complaints with 2,122, followed by Dongbu Insurance with 1,628 and LIG Insurance on 1,610.

But in terms of complaint radio, Lotte Insurance and Ergo Daum Direct reported the most dissatisfaction with 25.7 and 25.2 cases per 100,000 contracts, followed by Green Non-Life Insurance with 25.2.

Among credit card firms, Shinhan Card received the most complaints from customers at 1,100, but Samsung Card posted the highest complaint ratio per 100,000 customers at 5.4 percent, followed by Hyundai Card with 5 percent and Lotte Card with 4.6 percent.