Recently Korean Financial Services Commission has proposed a draft Financial Consumer Protection Act (“Proposed Draft Act”) which provides the financial consumers with various affirmative rights including the right of withdrawal from the consumer loan agreement for the purpose of giving the consumers an opportunity to reconsider the concluded agreement and seek their best suitable loans. Korean commercial banks have also recently introduced the right of withdrawal in their Standard Consumer Loan Agreement under which individual borrowers may withdraw from the consumer loan agreement. The right of withdrawal under both the Proposed Draft Act and the bank’s Standard Consumer Loan Agreement, as an exception to the general contractual principle that once a contract is concluded it binds its parties, enables the individual borrower to cancel a concluded consumer loan agreement for any reason, without any penalty, for a period of fourteen (14) calendar days. The withdrawal has the effect of terminating the contractual relationship and the obligations of both the bank and the borrower under the loan agreement. However both the Proposed Draft Act and the bank’s Standard Consumer Loan Agreement, respectively, have two provisions that might reduce the effectiveness of the right of withdrawal in terms of fairness between the bank and the borrower under the loan agreement. The one provision, with respect to the period of exercising the right of withdrawal, provides that the period of withdrawal shall begin either from the day on which the borrower receives the contractual document or the day on which the bank advances the loan proceeds, whichever is later. This provision could make the duration of withdrawal period unreasonably longer and, in the case of mortgage loan transaction, the borrower to bear the cost for mortgage registration. The other one, with respect to the exercise of the right of withdrawal, provides that repaying the loan, accrued interest and fees by the borrower constitutes a pre-condition for the withdrawal from the loan agreement. This provision makes the borrower difficult to exercise the right of withdrawal. In order to improve the fairness between the bank and the borrower under the loan agreement and solve the above-mentioned problems, I suggest to stipulating the right of withdrawal from the unsecured consumer loan agreement and the right of withdrawal from the secured consumer loan agreement in a separate and different way like EU provides Consumer Credit Directive and Mortgage Credit Directive separately and differently. In such a case, for the secured consumer loan agreement, it is desirable that, as the U.S. TILA provides, unless the borrower waives the right of withdrawal, the bank shall not advance and the borrower cannot drawdown the loan proceeds until the withdrawal period has expired for the benefits of both the borrower and the bank.