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Feb 24, 2026
- Revised Rule to Require High Dividend Companies to Disclose Their Qualifications through Corporate Value-up Plans
- With the revised Act on Restriction on Special Cases Concerning Taxation (the Act hereinafter) taking effect from January 1, 2026, a separate taxation rule has been adopted on income generated from stock dividends. Under the revised Act, high dividend companies will need to disclose the information demonstrating that they have satisfied all the requirements prescribed under the revised Act to qualify for special cases in a manner specified by a presidential decree. In this regard, a revision bill to the Enforcement Decree of the Act was approved by the government at the cabinet meeting held on February 24, 2026, stipulating that high dividend companies should follow the rules concerning the disclosure of corporate value-up plans. Method of Disclosure and Provision of Assistance At the end of each fiscal year-end closing, high dividend companies will need to file disclosures of corporate value-up plans with the Korea Exchange (KRX) with contents detailing that they have satisfied all the requirementsto qualify for special cases concerning taxation under the Act until one day after the day that dividends are declared at the annual general meeting of shareholders (AGM). Since the disclosure of corporate value-up plan is prepared by companies on their own based on the individual characteristics of each listed company, specific disclosure contentsother than the required fields on dividends, as well as the decision regarding which criteria to incorporate and in what length will be left up to companies in principle. In particular, considering that this is the first year wherein high dividend companies will be filing disclosures of corporate value-up plans for indicating their qualifications for special cases concerning taxation, an abridged form of disclosure will be permitted containing only key disclosure contents, such as qualifications for special cases concerning taxation, return on equity (ROE), dividend payout ratio target, and capital expenditure (CapEx) target. To
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Feb 23, 2026
- FSC Introduces Measures to Promote Sound Development of Mutual Savings Banks
- Chairman Lee Eog-weon of the Financial Services Commission held a meeting with the CEOs of twelve mutual savings banks and related organizations and discussed ways to promote sound development of mutual savings banks on February 23. A Summary of Remarks by FSC Chairman Amid an enduring risk of default originating from real estate market volatility, digital transition in the financial industry, and a polarization in the savings banks sector, it is now crucial to have a structural transformation in the industry for the survival and growth of savings banks. Against this backdrop, the FSC has prepared a set of measures to promote sound development of savings banks to facilitate their transition away from the short-term profit driven and community-centered operational model toward a more real economy-oriented and nationwide operational approach. In this regard, the financial intermediary function of savings banks should move away from real estate and collateral operations toward the real economy sector, such as SMEs, MMEs, and small merchants, in a more balanced way. To help savings banks retain their competitiveness amid changing business environment, the FSC will seek to overhaul relevant regulations pertaining to their operating practices. In order to propel a transition toward productive finance and remove regulatory hurdles for savings banks, a condition of sound management practices should be met. Therefore, the FSC also plans to carry out regulatory reforms regarding the soundness and governance structure of savings banks commensurate with the size and role of savings banks. Key Measures a) Promoting a transition toward productive finance and upgrading rules on operating practices to make them more reasonable The FSC will seek to overhaul regulations to make the financial intermediary function of savings banks more balanced across the real economy, transitioning away from the real estate sector toward SMEs, MMEs, and small merchants. To this end, the FSC will seek
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Feb 12, 2026
- FSC Announces Measures to Strengthen Delisting Rules to Facilitate Effective Removal of Unviable Companies
- The Financial Services Commission and the Korea Exchange announced plans to strengthen delisting rules intended to facilitate the exit of unviable companies in a more swift and strict manner. Background The government has been making necessary upgrades to the KOSDAQ market to transform it into an engine of productive finance and a platform for growth for innovative companies. In December last year, the government introduced measures to boost confidence and innovation in the KOSDAQ market consisting of the following key policy initiatives(a) strengthening the independence, autonomy, and competitiveness of the KOSDAQ market division, (b) redesigning the listing/delisting system to make the KODSAQ market more dynamic with easy entry and exit, (c) fostering stable conditions for institutional investors to enter the market, and (d) strengthening protection for investors to bolster market confidence. An upgrade to the delisting rules being introduced today is aimed at boosting dynamism in the KOSDAQ market by facilitating a seamless entry of innovative companies and ensuring a swift and strict removal of unviable companies. In this regard, the KOSDAQ delisting process has been made more efficient last year with the streamlining of the delisting review process from the three-tier review system with two years of improvement period previously to the two-tier review system with one and a half year improvement period. Last year, the market capitalization and revenue thresholds for delisting were also proposed to be adjusted upward in stages. In 2025, the number of delisting decisions increased to thirty-eight, rising significantly from eight in 2023 and twenty in 2024. Nonetheless, there continue to exist problems regarding underperforming and unviable companies (so-called zombie companies). In effect, over the past twenty years, a total of 1,353 companies entered the KOSDAQ market, but only 415 companies were removed from the market. During this period, KOSDAQ market cap rose
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Feb 11, 2026
- Household Loans, January 2026
- In January 2026, the outstanding balance of household loans across all financial sectors increased KRW1.4 trillion (preliminary), turning back up from the decline of KRW1.2 trillion in the previous month. (By Type) Home-backed mortgage loans increased KRW3.0 trillion, growing at a faster rate compared with the previous month (up KRW2.3 trillion). Mortgage loans dropped at a slightly faster rate in the banking sector (down KRW0.5 trillion down KRW0.6 trillion), but rose at a faster rate in the nonbanking sector (up KRW2.8 trillion up KRW3.6 trillion). Other types of loans edged down KRW1.7 trillion, declining at a slower rate compared with the previous month (down KRW3.6 trillion), as credit loans dropped at a slower pace (down KRW2.5 trillion down KRW1.0 trillion). (By Sector) In January 2026, household loans in the banking sector saw a drop of KRW1.0 trillion, declining at a slower rate compared with the previous month (down KRW2.0 trillion). Banks own mortgage loan products fell at a faster rate (down KRW1.4 trillion down KRW1.7 trillion), while policy-based mortgage loans rose at a slightly faster rate (up KRW0.9 trillion up KRW1.1 trillion). Other types of loans including credit loans declined at a slower rate (down KRW1.5 trillion down KRW0.4 trillion). In the nonbanking sector, household loans rose KRW2.4 trillion, growing at an expanded level from a month ago (up KRW0.8 trillion). Mutual finance businesses (up KRW2.0 trillion up KRW2.3 trillion) saw household loans edging up more rapidly, while insurance companies (down KRW0.02 trillion down KRW0.2 trillion) saw household loans declining at a faster rate. Specialized credit finance businesses (down KRW0.8 trillion down KRW0.02 trillion) saw household loans declining at a slower rate, while savings banks (down KRW0.5 trillion up KRW0.3 trillion) saw household loans shifting back up from a decline seen in the previous month. (Assessment) In January 2026, the outstanding balance of household loans edged up KRW1.
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Feb 08, 2026
- FSC Holds Meeting to Review Situations over Bithumb's Erroneous Payouts and Discuss Improvement Measures
- Chairman Lee Eog-weon of the Financial Services Commission convened a meeting with officials from the Korea Financial Intelligence Unit (KoFIU) and the Financial Supervisory Service (FSS) on February 8 to review situations concerning erroneous payouts of bitcoins (BTC) by Bithumb, which took place on the evening of February 6, and to discuss measures to strengthen the internal control system of virtual asset exchange service providers. Current Situation In the wake of accidental payouts of bitcoins (BTC) by Bithumb, which took place around 19:00 on February 6, an emergency meeting was held where the authorities discussed the issue of providing compensations for users following a sharp drop seen in the price of bitcoin (BTC). In this regard, Bithumb announced its own plans to offer compensations for its platform users whose sell transactions were affected by the accident and to make sure that its BTC users ledger is being maintained accurately. At todays meeting, FSC Chairman Lee instructed officials to check whether there are any further damages to users and to continue to monitor the progress of on-site inspections performed by the FSS and any significant movements in the virtual asset market. Government Response In response to Bithumbs erroneous payouts, an emergency response unit was set up at yesterdays meeting, consisting of officials from the FSC, KoFIU, FSS, and DAXA (Digital Asset Exchange Alliance), to make sure that necessary steps are taken to protect the users of virtual assets. As such, at todays meeting, the authorities discussed ways bring about regulatory and structural improvements to strengthen the reliability and transparency of virtual asset exchange service providers. In response to the recently exposed vulnerability in the internal control system of virtual asset exchange service providers, FSC Chairman Lee instructed officials to conduct inspections on Bithumb and all other virtual asset exchange service providers and to make sure that they ar
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Feb 05, 2026
- KoFIU Announces AML/CFT Policy Agendas for 2026
- The Korea Financial Intelligence Unit (KoFIU) held a policy advisory committee meeting on anti-money laundering and countering the financing of terrorism (AML/CFT) and announced key policy agendas for 2026 on February 5. At the committee meeting, KoFIU Commissioner Lee Hyung Ju said that it has been 25 years since the AML framework was first introduced in Korea pursuant to the Act on Reporting and Using Specified Financial Transaction Information (the Act hereinafter). In this regard, Commissioner Lee talked about the need to strengthen AML response capacity against newly emerging types of fraudulent activities, especially with regard to transborder crimes. To this end, the KoFIU plans to pursue four major policy agendas as follows(a) strengthening the capacity to respond to serious public livelihood infringement crimes and transborder crimes, (b) bolstering the AML framework in the virtual asset industry, (c) improving financial companies AML capacity, and (d) enhancing regulatory consistency with global standards. Background Since its establishment in 2001, the KoFIU has been examining and analyzing specified financial transaction information to be provided to law enforcement agencies and supervising and overseeing the AML duty of financial companies. Over the past 25 years, the volume of both suspicious transaction reports (STRs) and analysis of information being shared with law enforcement agencies has increased significantly. In 2023-2024, the use of KoFIUs analysis data led to the uncovering of major tax and customs violations cases. In 2021, the KoFIU adopted a registration system for virtual asset service providers (VASPs) and made them subject to the AML duty, thereby employing inspections and sanctions tools to help strengthen the AML capacity of VASPs. The KoFIU was the first in the world to adopt the travel rule for VASPs, requiring them to transmit and hold originator and beneficiary information in virtual asset transactions. Nonetheless, the Korean soc
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Feb 05, 2026
- FSC Introduces Measures to Strengthen Income Benefit and Enhance Convenience for Reverse Mortgage Subscribers
- The Financial Services Commission announced measures to strengthen income benefits and enhance convenience for reverse mortgage subscribers on February 5. Background The reverse mortgage program in Korea allows subscribers to take out reverse mortgage loans (monthly payments) using their houses as collateral in their lifetime, guaranteeing senior citizens a certain level of monthly income while continuing to live in their homes in retirement. Since the reverse mortgage program was first introduced in Korea back in 2007, there have been continuous efforts to expand the eligibility requirement regarding the age of subscribers and the price of houses.As a result, some 150,000 households were found to have subscribed to reverse mortgages in cumulative terms as of the end of 2025 (2% subscription rate). However, given the tendency of heavily concentrated wealth in real estate among senior citizensand rapidly aging populationin Korea, it remains necessary to further promote the use of the reverse mortgage program. In this regard, the following measures have been prepared to make reverse mortgage loans as a more mainstream source of retirement income generation for the elderly. Key Measures a) Increasing reverse mortgage payments Through a redesigning of the actuarial model used in the reverse mortgage program, subscribers will be able to receive increased payments. For an average subscriber (aged 72 with home value of KRW400 million), his or her monthly payments will increase by about 3.13 percent from KRW1,297,000 previously to KRW1,338,000. Over an entire subscription period (17.4 years for 72 y/o), the total amount of payments is forecast to be increased by about KRW8,490,000. This change will take effect for new subscribers from after March 1, 2026. In addition, there will be expanded support for low-priced homeowners residing in houses valued below a certain level. Currently, there is extra payment benefit provided to the subscribers who meet certain conditions (reci
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Feb 02, 2026
- AI-driven Stock Market Monitoring System Adopted to Boost Early Response Capacity against Unfair Trading Activities
- The Financial Services Commission announced that the Korea Exchange (KRX) will begin to operate an AI-driven market monitoring system from February 3 to bolster its early response capacity against market manipulation and other unfair trading activities. Despite recent increases in the number of attempts to unfairly influence and manipulate stock prices through dissemination of false information online, it remained difficult for authorities to verify the vast volume of data circulating in the cyberspace. Against this backdrop, as a follow-up to the comprehensive measures to stamp out unfair trading activities in stock markets (jointly announced by the FSC, FSS and KRX in July 2025), the KRX has developed an AI-driven monitoring system to more quickly and accurately detect and analyze relevant information circulating in the cyberspace. The newly launched AI-driven market monitoring system has been developed based on the training and analysis of online posts, reported cases of spam text messages, YouTube videos, and relevant data on stock price movements on the stock items that have been previously identified as potential targets of unfair transactions. Based on a set of objective indicators that the AI has learned from the training, the system has been designed to monitor trends of cyber information, assign scores on individual stock items, and automatically detect the items showing a high probability for unfair transactions activities. The findings will assist authorities to look into whether there are actually suspicious transactions activities involving certain stock items and help them to conduct more in-depth examinations if deemed necessary. With the AI-driven market monitoring system in place, authorities will be able to more quickly respond to suspicious transactions activities. The types of cyber information being monitored on a real-time basis will be expanded with an enhanced level of efficiency in sorting out high-risk stock items. The AI-based automated d
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Jan 30, 2026
- Capital Market Rules Change Proposed to Upgrade Regulations on Domestic Exchange-traded Fund Market
- The Financial Services Commission proposed capital market rules change to upgrade regulations on the domestic exchange-traded fund (ETF) market and help close the regulatory gap existing between domestically listed ETFs and overseas listed ETFs. The revision proposal for the Enforcement Decree of the Financial Investment Services and Capital Markets Act (FSCMA) and the regulation on financial investment businesses will enter a 40-day comment period from January 30 to March 11, 2026. Due to the presence of regulatory gap existing between domestically listed ETFs and overseas listed ETFs (with overseas ETFs being subject to eased regulations in their jurisdictions), it has been pointed out that the domestic ETF market has not been able to sufficiently absorb the demand of investors for diverse types of ETFs. In this regard, an upgrade to relevant regulations is proposed to improve regulatory consistency with global standards and boost the competitiveness of domestic capital markets, while ensuring stronger protection and greater convenience for investors to encourage investments in the domestic market. Key Revision Details a) Introducing single-stock ETFs (same rules to be applied on ETNs) In major overseas markets, such as the U.S. and Hong Kong, there are single-stock ETFs available for domestic investors to trade using mobile applications of domestic securities firms. However, in Korea, it is currently not possible to launch single-stock ETFs or single-stock ETNs due to the dispersed investment rule requiring ETFs to have at least ten (five for ETNs) underlying items with maximum 30 percent limit on each item. In this regard, the FSC will seek to amend relevant rules to allow the listing of single-stock ETFs tracking blue-chip stocks in the domestic market. The revised rules will also apply to exchange-traded notes (ETNs) through an update to the Korea Exchange (KRX) rules. Considering the need for investor protection and also overseas cases, leveraged ETFs and ETN
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Jan 29, 2026
- Legislative Ground Established to Check Criminal Record on Major Shareholders of Virtual Asset Service Providers
- The Financial Services Commission announced that a revision bill for the Act on Reporting and Using Specified Financial Transaction Information (the Act hereinafter) passed the plenary session of the National Assembly on January 29. The revision is intended to strengthen entry rules for virtual asset service providers and allow the notification of sanctions imposed on former (retired) employees of financial companies. Key Revision Details a) Strengthening of entry rules for virtual asset service providers With the revised law in place, the rules concerning the market entry of virtual asset service providers have been strengthened. More specifically, the revised law authorizes the Korea Financial Intelligence Unit (KoFIU) to check criminal record on major shareholders when screening for the registration of a virtual asset service provider. Previously, only the chief executive and other executive officers were subject to criminal background check. Under the revised law, the scope of laws under which previous rule-breaking activities are screened for will also be broadened to include violations regarding illegal narcotics trafficking, fair trade, tax offenses, specific economic crimes, virtual asset user protection, etc. Additionally, the revised law will enable the KoFIU to examine financial conditions and social credibility of virtual asset service providers and whether they are equipped with appropriate levels of organizational, human resources, computer network, and internal control capacities for complying with relevant regulations. Moreover, even after granting an approval of business registration, the revised law establishes a ground for the KoFIU to impose certain conditions for the purpose of ensuring anti-money laundering, user protection, etc. b) Notification of sanctions imposed on retired employees of financial companies The revised law also includes a provision authorizing the KoFIU to notify financial companies about the issuance of sanctions imposed on
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Jan 28, 2026
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Jan 21, 2026
- Rule Change Proposed on Loan-to-deposit Ratio for Banks to Promote Supply of Funds to Regional Economies
- The Financial Services Commission issued a preliminary notice of rule change regarding the supervisory regulation on banking business on January 21. The proposed rule change will ease the standard for calculating loan-to-deposit ratios for banks to encourage them to supply more loans to companies and individual business owners operating outside the Seoul metropolitan area. The proposed rule change will be put up for public comment from January 22 until February 11, 2026 and go through an approval process before taking effect in the first quarter of this year. The proposed rule change is part of a broader policy initiative intended to boost the supply of funds to regional economies. In this regard, the proportion of policy funds being supplied to non-Seoul metropolitan regions will be increased from about 40 percent in 2025 to about 45 percent by 2028. This will push up the annual volume of policy funds being supplied to regional economies by about KRW25 trillion to a total of KRW120 trillion in 2028. To promote a well-balanced growth across regions, National Growth Fund, which will make investments in high-tech and future growth industries, will also allocate about 40 percent of its total investments to regions outside the Seoul metropolitan area. There will also be efforts to boost the supply of funds to regions from private financial companies. The FSC plans to upgrade rules and provide incentives to improve the competitiveness of regional banks and strengthen the function of savings banks and mutual finance businesses in providing regional finance. In this regard, the proposed rule change on banks loan-to-deposit ratio is intended to provide incentive for banks to supply more funds to regional economies. Under the current system, banks issuance of loans to companies, individual business owners, and households are weighted 85 percent, 100 percent, and 115 percent, respectively. However, with the rule change in place, the weight applied for calculating banks loan-t
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Jan 19, 2026
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Jan 15, 2026
- Amended Legislation Establishes Legal Ground for Introducing and Circulating Security Tokens
- The Financial Services Commission announced that revision bills for the Act on Electronic Registration of Stocks and Bonds (the Electronic Registration Act hereinafter) and the Financial Investment Services and Capital Markets Act (the FSCMA hereinafter) passed the National Assembly at a plenary session held on January 15. The amended legislation will pave the way for introducing and circulating security tokens. A security token (or tokenized security) is a digitized form of a security, which is legally defined under the FSCMA and whose issuance and circulation information is being recorded and managed on a blockchain-based distributed ledger. To legally recognize distributed ledger as a securities registry and ensure stability, it was necessary to make changes to relevant laws. In this regard, the passage of revision bills at the plenary session of the National Assembly today mark a culmination of years-long legislative efforts from authorities since 2023. Key Revision Details a) Introducing Security Tokens: An Update to the Electronic Registration Act Under the revised Electronic Registration Act, a clear definition is provided on distributed ledger, which is legally recognized as a securities registry, thereby authorizing the issuance of securities in the form of security tokens. The issuer of a security token will need to follow legally mandated procedures and qualifications to make notification and apply for electronic registration with the Korea Securities Depository (KSD). With the introduction of security tokens, the management of securities accounts based on distributed ledger technology and the use of smart contracts will be promoted. The blockchain-based distributed ledger technology is widely known for its stability and security against hacking attacks, and this will promote more active use of smart contracts, especially in transactions for newly emerging types of securities, such as fractional investment products (trust beneficiary certificates) and inv
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Jan 15, 2026
- Legislative Ground Established to More Effectively Prevent Suspicious Transactions Linked to Vishing Scams
- The Financial Services Commission announced that a revision bill for the Special Act on the Prevention of Loss Caused by Telecommunication-based Financial Fraud and Refund for Loss passed the National Assembly at a plenary session held on January 15. The amended legislation provides a legal ground for relevant officials and authorities (in finance, telecom services, and investigation) to share and make use of suspicious data on the previously established AI-based Anti-phishing Sharing and Analysis Platform (ASAP). Key Revision Details First, the amended legislation establishes a new term fraud-linked suspicious account to allow the sharing of information for suspicious accounts not only for fraudsters but also for victims. Previously, financial companies were able to share information about the accounts used in frauds and those suspected to have incurred damage, but these were all account information related to fraudsters. Thus, previously, there was no legal ground for financial companies to share information about victims accounts. Second, to make sure a stable operation of the AI-based Anti-phishing Sharing and Analysis Platform (ASAP), the FSC is authorized to designate a data sharing and analysis institution. Based on high levels of data analysis expertise and selection criteria, the FSC will designate a data sharing and analysis institution, which will then establish its own technological, physical, and managerial measures to make sure stability in the sharing of data. The FSC will also have the supervisory authority over this institution to revoke designation and take other steps if it fails to carry out duties properly. Third, under the amended Act, the types of information provided through ASAP are more clearly established to increase predictability. In addition, when fraud-related data is being transmitted to the data sharing and analysis institution, there is no need to acquire consent from the data subject (fraudsters and victims) to facilitate a speedy
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Jan 14, 2026
- Responsibilities Mapping to be Piloted for Large-sized Specialized Credit Finance Businesses and Savings Banks
- The Financial Services Commission announced on January 14 that the responsibilities mapping system will be piloted for large-sized specialized credit finance businesses with total assets of KRW5 trillion or more and savings banks with total assets of KRW700 billion or more. With the amended Act on Corporate Governance of Financial Companies (the Act hereinafter) taking effect from July 3, 2024, banks and financial holding companies (from Jan. 2, 2025), as well as large-sized financial investment companies and insurance companies (from Jul. 2, 2025) have already become subject to the submission of their own responsibilities maps to the Financial Supervisory Service. Pursuant to the Act, large-sized specialized credit finance business with total assets of KRW5 trillion or more and savings banks with total assets of KRW700 billion or more will need to submit responsibilities maps to the FSS by July 2, 2026. Smaller-sized financial investment businesses and insurance companies with total assets below KRW5 trillion will also be subject to the July 2 submission due date. From the time responsibilities maps are submitted to the FSS, the chief executives and other executive officers of financial companies become subject to the duty of internal control oversight and risk management in their lines of work, and may become subject to sanctions if found to be in violation of the internal control oversight duty. In this regard, there have not been sufficient incentives made available previously to encourage financial companies to adopt responsibilities maps in advance prior to the legally mandated submission due date, especially due to concerns over potential sanctions for violation. As such, the FSC and the FSS will pilot the responsibilities mapping system for large-sized specialized credit finance businesses and savings banks prior to the actual enforcement date (July 2, 2026). Those wishing to participate in the pilot program will need to submit their own responsibilities map
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Jan 14, 2026
- Household Loans, December 2025
- Household Loans in 2025 In 2025, the outstanding balance of household loans across all financial sectors went up KRW37.6 trillion (preliminary), growing at a slower rate compared with the end of the previous year (up 2.6 percent up 2.3 percent). * Change (in trillion KRW, y-o-y): +107.5 (2021), -8.8 (2022), +10.1 (2023), +41.6 (2024), +37.6 (2025P) It demonstrates that the ratio of household debt to GDP continues to be on a downward path toward stabilization. * Household debt to GDP ratio (%): 98.7 (2021), 97.3 (2022), 93.0 (2023), 89.6 (2024), 89.3 (Q3 2025) (By Type) In 2025, mortgage loans increased at a slower rate compared with the previous year (up KRW58.1 trillion up KRW52.6 trillion). Other types of loans edged down at a slower rate over the same period (down KRW16.5 trillion down KRW15.0 trillion). (By Sector) Household loans grew at a slower rate in the banking sector compared with a year ago (up KRW46.2 trillion up KRW32.7 trillion). The nonbanking sector saw household loans shifting back up from a decline seen in the previous year (down KRW4.6 trillion up KRW4.8 trillion). Mortgage loans from banks rose at a slower rate compared with the previous year (up KRW52.2 trillion up KRW32.4 trillion). Other types of loans from banks edged back up from a decline seen a year ago (down KRW6.0 trillion up KRW0.3 trillion). Household loans in the nonbanking sector declined in the specialized credit finance (down KRW3.0 trillion), insurance (down KRW1.8 trillion), and savings banks (down KRW0.8 trillion) sectors, but rose in the mutual finance (up KRW10.5 trillion) sector. Household Loans in December 2025 In December 2025, the outstanding balance of household loans across all financial sectors dropped KRW1.5 trillion (preliminary), edging down from the growth of KRW4.4 trillion a month ago and of KRW2.0 trillion in the previous year. (By Type) In December 2025, mortgage loans from banks rose at a slower rate compared with the previous month (up KRW3.1 trillion up KRW2
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Jan 12, 2026
- Standard Information Consent Form in Insurance Industry Updated to Promote Retrocession Contracts
- The Financial Services Commission announced that an update has been made to the standard information consent form in the insurance industry (Jan. 2, 2026) to promote retrocession contracts, which will help insurers spread out risk and enhance stability in claims payouts for policyholders. Retrocession is a reinsurance agreement in which a reinsurer (retrocedent) transfers part or all of its reinsurance risk it has assumed from a primary insurer to another reinsurer (retrocessionaire) for the purpose of managing risks more stably. In order to carry out retrocession transactions, separate consent is required from policyholders for providing information to another reinsurer (retrocessionaire). However, considering the nature of business-to-business (B2B) transactions in reinsurance, it remained difficult for reinsurers to obtain consent directly from policyholders, which has been an impediment for retrocession transactions thus far. In this regard, to promote retrocession contracts, the Financial Services Commission and the Financial Supervisory Service have allowed primary insurers to obtain consent for providing information directly from policyholders in place of reinsurers for retrocession transactions. Following this, the Korea Life Insurance Association and the General Insurance Association of Korea have made an update to their standard information consent form. Key Revision Details With the revised standard information consent form, primary insurers will be able to obtain consent for providing information from policyholders in place of reinsurers for retrocession purposes. The purpose of information use for reinsurers (retrocessionaires) is restricted to retrocession contracts only, permitting them to use information about policyholders only for retrocession transactions purposes. The use of information for other purposes, such as marketing and advertising, will be strictly prohibited. Retrocession contract with an overseas reinsurer may lead to overseas transfer
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Jan 08, 2026
- FSC Outlines Key Measures to Boost Financial Inclusion
- Chairman Lee Eog-weon of the Financial Services Commission presided over the first meeting on propelling a transition to inclusive finance with officials from related public organizations, five major financial holding groups, and private sector experts on January 8. At todays meeting, officials discussed ways to boost financial inclusion going forward through joint efforts from the public and private sectors. A Summary of Remarks by FSC Chairman Following the inauguration of the new administration, emergency assistance measures were provided in the form of New Leap Fund (a long-term debt restructuring program for small merchants and vulnerable debtors) and credit recovery support, which helped to lay the foundation to facilitate a recovery in peoples livelihoods. Building upon this, it is now necessary to propel a transition to inclusive finance, which will help to address more deep-rooted problems facing financially neglected groups, long-term delinquent debtors, and those struggling with excessive debt collection practices. To pursue a sweeping overhaul in finance to make financial services more inclusive, the FSC will focus on the following three policy tasks(a) improving financial access and reducing financial cost burden, (b) providing support for vulnerable groups to help them quickly recover and regain footing, and (c) strengthening financial safety nets. First, to improve financial access and reduce the burden of financing cost, the government and the banking sector will work together to expand the supply of microloan support. The interest rate on a policy-based microloan product (Sunshine Loan) has been already lowered from January this year, and there will be an announcement made in the first quarter for the introduction of various low-interest microloan programs made available for financially neglected and socially vulnerable groups. To promote a spread of inclusive finance in private financial institutions, the supply of the microloan product in the bank
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Dec 29, 2025
- Promoting Measures to Strengthen the Effectiveness of the Stewardship Code
- On December 29, 2025, the Stewardship Code Council, the Korea Institute of Corporate Governance and Sustainability (KCGS), and relevant ministries and agencies including the Financial Services Commission, Ministry of Health and Welfare, Ministry of Education, Ministry of Personnel Management, and Korea Post, jointly announced measures to strengthen the effectiveness of the Principles on Institutional Investors Stewardship Responsibilities (hereinafter referred to as the Stewardship Code). The Stewardship Code, a set of principles designed to guide institutional investors that manage assets in fulfilling their stewardship responsibilities, was introduced in December 2016 as a private-sector voluntary code. Over the subsequent 9 years, through December 2025, a total of 249 institutional investors have participated in the Stewardship Code. These include 4 public pension funds, the National Pension Service, the Government Employees Pension Service, the Private School Teachers Pension, and Korea Post, as well as 63 asset management companies. Since its introduction, the Stewardship Code has contributed to more active exercise of shareholder rights by institutional investors. This is evidenced by an increase in the proportion of dissenting votes cast(from 1.84% in March 2016 to 4.59% in March 2024) and a rise in the number of shareholder proposals. However, the effectiveness of the Stewardship Code has been still limited due to the absence of implementation review, insufficient systematic disclosure, and a lack of alignment with global standards. It was not possible to recognize the status of compliance with the Stewardship Code of individual participant as the implementation review was not officially provided. And even when participants reported the Stewardship Code implementation, the reports were posted only on their individual websites, resulting in the limitation of information access as well as the lack of comparability. Moreover, such information was difficult to v
