At a comprehensive parliamentary audit of the financial sector, lawmakers raised issues spanning governance, loan rate-setting, security and consumer protection. They flagged practices in which retired executives stay on as advisers, and concerns over former Financial Supervisory Service officials taking jobs in financial holding companies. Some banks were criticised for raising add-on rates and cutting preferential rates. Low compensation under a voice phishing scheme and vulnerabilities in bank security software were also questioned, along with a lack of long-term fixed-rate mortgages.

South Korea\'s major financial holding companies are expected to extend profit growth in the third quarter, despite a slowdown in earnings momentum at their securities units that helped lift results in the second quarter. Expanded corporate lending by banks and foreign-exchange related profit and loss improvements could partly offset weaker non-interest income, the article said. The market is watching whether the big four can post record annual net profit.