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Bank BIS Capital Ratios-September, 2006

    Bank BIS Capital Ratios-September, 2006

    December 21, 2006
  • Bank BIS capital ratios averaged 13.10% at the end of September, compared with 13.06% at end-June and 13.00% at end-2005. Bank capital rose KRW14.6 trillion (14.2%) on net income totaling KRW11.5 trillion for the first nine months of the year, while risk-weighted assets increased KRW105.5 trillion (13.3%) during the same period. Tier-1 capital rose 16.5% (KRW12.2 trillion) compared with an 8.3% increase (KRW2.4 trillion) for tier-2 capital.

  

New Measures Proposed to Advance the Bond Market

    New Measures Proposed to Advance the Bond Market

    December 18, 2006
  • The Financial Supervisory Commission announced a set of proposals aimed at advancing the bond market on December 14. The new proposals are the work of a joint public-private task force created in February this year to recommend improvement in four key areas—corporate bond underwriting, market liquidity, trading of repurchase agreements, and disclosure—and help raise the transparency and efficiency of the bond market. The legal and regulatory amendments needed for the changes proposed by the task force are expected to be completed by June, 2007.

  

Assessment of Private Equity Industry, November, 2006

    Assessment of Private Equity Industry, November, 2006

    November 24, 2006
  • The Financial Supervisory Service issued an assessment of Korea’s private equity industry on November 22, 2006, to mark the second year of regulatory changes that allowed the formation of private equity funds (PEFs) as a recognized investment entity for the first time in December, 2004.

  

Bank Loans Classified as Substandard or Below: September, 2006

    Bank Loans Classified as Substandard or Below: September, 2006

    November 15, 2006
  • Bank loans classified as substandard or below (SBLs)–substandard, doubtful, or presumed loss–totaled KRW8.8 trillion at the end of September, unchanged from end-June. But the ratio of SBLs to total outstanding loans fell to 0.98%, the lowest ratio since the forward-looking criteria were first adopted in 1999. The SBL ratio averaged 1.02% at end-June and 1.22% at end-2005. A surge in new loans, which pushed the total outstanding loans to KRW895.2 from KRW861.3 trillion, was mostly responsible for the drop in SBL ratio.

  

Preliminary Bank Net Income: January-September, 2006

    Preliminary Bank Net Income: January-September, 2006

    November 15, 2006
  • Preliminary figures show domestic banks’ net income for the first nine months of 2006 will come to KRW11.1 trillion, compared with KRW10.5 trillion for the same period a year earlier. A drop in provisioning for loan losses and disposition of stocks from past debt-equity swaps mostly contributed to the increase. Income for the third quarter totaled KRW3.1 trillion, down from KRW4.0 trillion a year earlier.

  

Asset Management Companies' Preliminary Net Income:First Half of FY2006

    Asset Management Companies' Preliminary Net Income:First Half of FY2006

    November 10, 2006
  • Regulatory filings by 49 asset management companies–36 domestic and 13 foreign–show preliminary net income for the first six months of FY2006 ended September 30 totaled KRW150.9 billion, up KRW93.6 billion from KRW57.3 billion a year earlier. Pretax income came to KRW200.0 billion, compared with KRW78.5 billion a year earlier.

  

IMF-FSC/FSS to Host Macroprudential Supervision Conference in Seoul

    IMF-FSC/FSS to Host Macroprudential Supervision Conference in Seoul

    November 01, 2006
  • The International Monetary Fund and Financial Supervisory Commission / Financial Supervisory Service will jointly host an international conference on macroprudential supervision in Seoul from November 7 to 8, 2006, at the Grand Hyatt Seoul Hotel.

  

Introduction of Third Insurance with Cash Value and Bancassurance Supervision

    Introduction of Third Insurance with Cash Value and Bancassurance Supervision

    September 22, 2006
  • Bancassurance was first introduced in August, 2003, to help consumers purchase insurance at a lower cost and improve market efficiency. In light of the potential impact of bancassurance on the insurance market, a phase-in approach was adopted. Under this approach, sale of savings-type insurance began in August, 2003. This was followed by the sale of exclusively protection-type “third insurance” providing coverage against illnesses and injuries as well as post-illness and post-injury risks in April, 2005. In October, the sale of third insurance with cash value at maturity (TICV) is set to begin.

  

Equity Disclosure Filings First Half 2006

    Equity Disclosure Filings First Half 2006

    September 12, 2006
  • An analysis of disclosure filings for investment in listed companies for the first six months of 2006 showed a total of 2,397 investors held five percent or more equity interests in 1,624 listed companies (700 Stock Market-listed and 924 KOSDAQlisted). During the period, 2 tender offers and 122 proxy solicitations were made, compared with 5 and 108, respectively, during the same period a year earlier.

  

Chairman/Governor Yoon Jeung-Hyun to Visit Hong Kong, Thailand and Singapore for Talks on Supervisory Cooperation

    Chairman/Governor Yoon Jeung-Hyun to Visit Hong Kong, Thailand and Singapore for Talks on Supervisory Cooperation

    September 01, 2006
  • Chairman/Governor Yoon Jeung-Hyun of the Financial Supervisory Commission and Financial Supervisory Service will visit Hong Kong, Singapore and Thailand and meet with senior supervisors and business leaders from August 31 to September 7. Throughout the trip, discussions are planned on wide-ranging supervisory issues, including cross-border supervisory cooperation, investor/consumer protection under free trade regime, MOU on exchange of information and joint examination, and implementation of Basel II capital framework. Chairman/Governor Yoon also plans to take the opportunity to share Korea’s success with financial-sector reform and promote its financial hub initiative to business leaders in the three countries.