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Vice Chairman holds 5th working group meeting of the taskforce on improving management and operating practices of banksApr 13, 2023

The FSC and the FSS held the 5th working group meeting of the taskforce on improving the management and operating practices of banks and banking system on April 12, chaired by FSC Vice Chairman Kim So-young. At the meeting, participants discussed ways to promote banks' corporate social responsibility and the measures to improve the process regarding banks' branch closures. At the meeting, Vice Chairman Kim said that promoting banks' corporate social responsibility is important to foster a virtuous cycle of win-win relationship between banks and their consumersandalsonecessary to create a condition where the economy can grow on a sustainable basis. Regarding banks' branch closures, Vice Chairman Kim said that despiteanaccelerated paceofdigital transformation, it is important for banks to prioritize the value of trust from the perspective of consumers, especially for the elderly, who may face difficulties in accessing financial services if their local bank branches close down. As such, Vice Chairman Kim urged the banking sectortoactively cooperate in implementing the measures to improve the process of banks' branch closures announced at the meeting.
Vice Chairman speaks about importance of information transparency in ESG evaluation processApr 13, 2023

FSC Vice Chairman Kim So-young attended a policy seminar on improving the transparency and credibility in the ESG evaluation market on April 13 and spoke about the need to ensure information transparency throughout the entire ESG evaluation process. In his opening remarks, Vice Chairman Kim said that the role of ESGratingsservice providers is becoming more important as there are more ESG investments taking place. In this regard, to help boost the transparency in ESG-related information, Vice Chairman Kim said that the government will work to seamlessly implement its plan to phase in the ESG disclosure requirement from 2025. Meanwhile, Vice Chairman Kim said that the government will also work to properly balance the goal of promoting market autonomy andthat ofguaranteeing investor trust. Based on the discussions at today's seminar, the FSC plans to introduce specificmeasuresto increase the credibility and transparency in the ESG evaluation market in the future.
FSC Chairman visits an SME and discusses financial support provided by policy financial institutionsApr 11, 2023

FSC Chairman Kim Joo-hyun visited Tanktech, an SME in the plant and shipbuilding sector located in Busan on April 11, to have talks with its employees and listen to their comments and suggestions. Tanktech is a recipient of the enterprise support program made available by policy financial institutions. During his visit, Chairman Kim said that there are currently diverse support programs made available to help ease the financing burden of SMEs such as low interest rate loans and preferential guarantees, and that authorities will take their suggestions into consideration in implementing various financial support programs.
FSC Chairman speaks about importance of market-oriented measures for corporate restructuringApr 11, 2023

FSC Chairman Kim Joo-hyun attended the business agreement ceremony for launching a corporate restructuring innovation fund at Busan International Finance Center in Busan on April 11. The Korea Development Bank, the Export-Import Bank of Korea, the Industrial Bank of Korea and the Korea Asset Management Corporation pledged to invest KRW500 billion in policy funds and actively cooperate with each other for launching a corporate restructuring innovation fund worth KRW1 trillion. In his congratulatory remarks, Chairman Kim talked about the importance of pursuing market-oriented measures for corporate restructuring and said that authorities will work to establish up to KRW4 trillion worth of corporate restructuring innovation funds by 2027 to facilitate normalization of enterprises through capital markets.
FSC Chairman holds talks with startup and venture businessesApr 10, 2023

FSC Chairman Kim Joo-hyun met with startup and venture businesses on April 10 and held talks on ways to more effectively provide financial support to help ease their financing difficulties amid a slowdown in investment activities and liquidity crunch in the startup sector. At the meeting, Chairman Kim said that authorities have been encouraging policy financial institutions such as the Korea Development Bank, the Industrial Bank of Korea, Korea Credit Guarantee Fund and Korea Growth Investment Corporation to assess their startup and venture support programs and to more actively expand the availability of support. After listening to various opinions raised by startups and venture businesses, Chairman Kim said that the FSC will take them into account when drawing up policy support measures together with the Ministry of SMEs and Startups.
Vice Chairman holds talks with heads of banksApr 06, 2023

FSC Vice Chairman Kim So-young met with the heads of all local banks on April 6 and urged active cooperation forimprovingthe management and operating practices of banks and banking system. In his opening remarks, Vice Chairman Kim spoke about some of the positive outcomes of operating a taskforce for this effort including the expanded availability of loan transfer infrastructure, introduction of online deposit product brokerage services and improvement in disclosureofinterest rate differences between deposits and loans. To promote competition in the banking sector, Vice Chairman said that policy decisions should be made from a perspective of bringing about more benefits for the public based on financial market stability and consumer protection. Regarding the banking sector's bonus remuneration system, the Vice Chairman said that an assessment should take place on employees' innovative efforts while giving sufficient consideration for their prudential management and consumer protection efforts as well. After operating the taskforce until the end of June, Vice Chairman Kim said that authorities will draw up specific measures for improvement.
FSC holds 7th financial regulatory innovation committee meetingApr 05, 2023

The FSC held the 7th financial regulatory innovation committee meeting on April 5 and discussed measures to ease rules on the loan-to-deposit ratio (in KRW) for local branches of foreign banks, promote online insurance comparison and recommendation platform services and make the current procedure of "duty to explain" financial products more consumer-oriented. Previously, foreign bank branches with a total volume of loans (in KRW) worth KRW2 trillion or more had to maintain 100 percent or lower in their loan-to-deposit ratio. However, this 100 percent or less threshold will be required from foreign bank branches whose total size of loans (in KRW) amounts to KRW4 trillion or more. At the meeting, FSC Chairman Kim Joo-hyun talked about the need to continue to push forward with the financial regulatory reform agendas in line withdigital transformation even against the backdrop of increased market uncertainties following steep rate hikes and the recent bank turmoil abroad. In this regard, Chairman Kim said that authorities will work to effectively balance financial market stability and financial regulatory reform in order to further enhance the global competitiveness of Korea's financial industry.
FSC Chairman meets with CEOs of major financial holding companiesMar 31, 2023

FSC Chairman Kim Joo-hyun met with the CEOs of five major financial holding companies on March 31 and held talks on the issues regarding financial stability, restoring trust in financial sectorand ensuring accountability. In the wake of recent bank failures abroad, Chairman Kim said that their effects on domestic market appear to be limited. However, as there are lingering uncertainties, Chairman Kim called for strong cooperation to maintain stability in financial markets. Chairman Kim also talked about the importance ofhavingeffective internal control mechanismsand risk management capacity in financial sector. Based on their responsible management practices, Chairman Kim said that the government will continue to seek regulatory reforms to help increase the competitiveness and innovativeness of the financial industry.
Vice Chairman holds 2nd taskforce meeting on improving management and operating practices of banksMar 30, 2023

The FSC and the FSS held the 2nd taskforce meeting on improving the management and operating practices of banks on March 29, chaired by FSC Vice Chairman Kim So-young. At the meeting, participants went over the issues that have been discussed in previous working group meetings up to nowand held discussions on things to consider when introducing small licensing unitsfor banking businessand consumer benefits and regulatory direction for allowing payment settlement services for nonbank financial institutions. Authorities plan to hold the 5th working group meeting of the taskforce on improving the management and operating practices of banks on April 12 (tentatively scheduled) to discuss measures to promote corporate social responsibility in the banking sector.
Vice Chairman meets with Deputy Governor Nguyen Kim Anh of State Bank of VietnamMar 30, 2023

FSC Vice Chairman Kim So-young met with Deputy Governor of the State Bank of Vietnam (SVB) Nguyen Kim Anh and SVB's delegation team on March 30 and held talks on expanding and strengthening bilateral cooperation on financial sector development. During the meeting, Vice Chairman Kim said that Vietnam is one of the three major trading partners for Korea andis secondonlytoChina interms of the number ofKorean financial companies it hosts. As Korean banks operating in Vietnam have had great reputation for their successful localization and effective risk management, Vice Chairman Kim sought close cooperationto facilitatea prompt licensing of certain Korean banks that arecurrently preparing to expand their business in Vietnam.
FSC Chairman visits inclusive finance support center to check implementation of new microloan program for vulnerable borrowersMar 27, 2023

FSC Chairman Kim Joo-hyun visited a branch of the Korea Inclusive Finance Agency's support center on March 27 to see how the newly introduced microloan program for living expenses is being provided to vulnerable borrowers. During his visit, Chairman Kim said that it is very meaningful to be able to provide an opportunity to those borrowers who stand at the brink of being pushed off to illegal predatory lenders who often charge exorbitant rates on loans. At the same time, Chairman Kim also underscored the important role of the support center employees in providing consulting to applicants in a more comprehensive and substantive way. As this microloan program for living expenses is made available for the first time, Chairman Kim said that authorities will closely monitor how this program is operated and, if necessary, prepare improvement measures quickly.
Authorities hold policy seminar to support corporate M&AsMar 27, 2023

The FSC and the FSS held a policy seminar on providing support for corporate mergers and acquisitions (MAs) together with the Korea Exchange and Korea Capital Market Institute on March 27. At the beginning of the seminar, FSC Vice Chairman Kim So-young delivered congratulatory remarks and said that corporate MAs are important mechanisms for businesses in enhancing their management efficiency or seeking reorganization, and that they are useful for increasing economic productivity and facilitating economic recovery. In this regard, Vice Chairman Kim said that the government will implement measures to (a) make significant improvements in regulations on corporate MAs, (b) strengthen support for corporate restructuring, (c) support strategic MAs in line with demand for industrial restructuring and (d) make MA regulations more congruent with global standards. The FSC plans to draw up specific measures for supporting corporate MAs after having discussions with experts in the future.