Press Releases - Financial Services Commission

Press Releases

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Dec 03, 2025

Capital Market Rules Change Proposed for Establishing Regulations on Business Development Companies

The Financial Services Commission introduced a revision proposal for the Enforcement Decree of the Financial Investment Services and Capital Markets Act (FSCMA) and supervisory regulations on financial investment business for establishing regulations on business development companies (BDCs) on December 3. This revision proposal prescribes detailed provisions for establishing rules on BDCs under the revised FSCMA (promulgated on September 16, 2025 and scheduled to go into effect on March 17, 2026), while upgrading other regulations on publicly traded funds and financial investment business in general. Key Revision Details Rules regarding the operation of BDCs BDCs will be required to invest 60 percent or more of their total assets in their main investment target, such as unlisted startups or venture businesses, venture investment associations, and KONEX-listed or KOSDAQ-listed businesses. To promote reinvestments after the recovery of initial investment in the venture investment market, BDCs will be permitted to invest in venture associations and KOSDAQ-listed companies. However, in order to prevent the potential of concentration toward certain sectors, only up to 30 percent of investments made in venture associations and KOSDAQ-listed companies each will be counted toward the calculation of the minimum investment requirement of 60 percent. The KOSDAQ-listed companies eligible for investment will be limited to those with a market capitalization of KRW200 billion or less (about 75 percent of KOSDAQ-listed companies). Investment can take the form of either purchasing shares or lending money. Share purchases will be limited to stocks and equity-linked bonds (convertible bonds, exchangeable bonds, and bonds with warrants). The proportion of money lending to total investment on major investment targets should be limited to maximum 40 percent, and the establishment of internal control mechanisms is required to ensure the appropriateness of money lending and the assessment
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Nov 27, 2025

Revised Rules on Payment Gateway Services to Ensure Safe Protection of Unsettled Funds for Users

The Financial Services Commission announced that a revision bill for the Act on Electronic Financial Transactions (the Act hereinafter), with strengthened rules on payment gateway (PG) services, was approved by the National Assembly at the plenary session held on November 27. In the wake of large-scale payment failures involving PG services in July 2024, the FSC and related government ministries prepared a set of measures intended to bolster the protection of unsettled funds for users (sellers) and strengthen the oversight and supervisory mechanisms on PG services. The revised rules passed at the National Assembly today include these measures drawn up by the government last year. Key Revision Details First, PG services will be required to separately manage the total amount (100 percent) of unsettled funds externally in the form of deposit, trust, or payment guarantee insurance. In addition, the externally managed unsettled funds will not be allowed for a transfer or to be used as a collateral, or put up for confiscation or setoff by a third party. A priority right to payments will also be introduced as a legal means to ensure the safe protection of unsettled funds for sellers. Additionally, the revised rules establish a legislative ground to impose sanctions and penalties (a) if the unsettled funds are found to have been used for some other non-settlement purposes (imprisonment of up to 10 years or up to KRW100 million in fine), (b) when found to be in violation of the external management duty (administrative fine of up to KRW50 million, business suspension for six months or less), or (c) if there is a failure of making payment within the agreed upon settlement period (administrative fine of up to KRW50 million). However, considering the potential burden of regulatory compliance placed on PG services, there will be a grace period of one year after the promulgation of the revised rules. After the one-year grace period, the external management duty will be phased in g
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Nov 27, 2025

Guidelines on Omnibus Account Provided to Facilitate Domestic Stock Investment by Foreign Investors

The Financial Services Commission announced the availability of guidelines on the use of omnibus account for foreign investors on November 27. Background With the introduction of omnibus account in 2017 and the abolishment of the T+2 transactions reporting duty for omnibus account holders in 2023, the FSC has been making continuous efforts to improve the convenience of transactions for foreign investors. However, in various communications with overseas investors, it has been pointed out that the current eligibility requirement placed on omnibus account holders (foreign financial investment businesses) remains too restrictiveand that there are no guidelines on omnibus account to facilitate its usage. In this regard, in April 2025, the FSC, along with the Financial Supervisory Service (FSS) and the Korea Financial Investment Association (KOFIA), granted a regulatory exemption under the financial regulatory sandbox program to assist a domestic securities firm to form a partnership with an overseas small- or medium-sized financial investment business and to enable the latter to open an omnibus account with the domestic securities firm. Through this, the first omnibus account for foreign investors has been opened in August 2025 (Hana Securities-Emperor Securities), and other securities businesses (Samsung Securities and Yuanta Securities) are also following suit through the regulatory exemption program (designated in September 2025). In addition, after taking into account various opinions and questions raised by domestic securities businesses, standing proxies, and foreign institutional investors, the FSC and related organizations have jointly prepared guidelines on the use of omnibus account for foreign investors. Key Details The guidelineson the use of omnibus account for foreign investors provide step-by-step procedural details regarding (a) the opening of omnibus account, (b) allocation of shareholder rights, (c) reporting duty, and (d) the management of internal con
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Nov 26, 2025

7th Annual Korea Fintech Week Kicks Off Highlighting Potential of AI and Personalization of Finance

The Financial Services Commission announced that the 2025 Korea Fintech Week has kicked off on November 26 for three days until November 28 at aT Center in Seoul with participation from major domestic and overseas fintech businesses, financial companies, associated institutions, and foreign governments and international organizations. This years global fintech expo has been organized to be the largest ever in terms of scale with 99 exhibition booths and 128 businesses and organizations participating and showcasing a variety of seminars and programs. As such, visitors have shown strong interest for joining this years Korea Fintech Week as the volume of pre-registration (about 5,200 individuals as of 17:00 pm, Nov. 25) more than doubled from the level seen in the previous year. The 2025 Korea Fintech Week started out with opening events featuring speeches by world-renowned entrepreneurs and authorities. Chairman Lee Eog-weon of the Financial Services Commission delivered a welcoming speech where he emphasized the need to promote digital innovation through AI transition in the financial industry. In this regard, FSC Chairman Lee said that the AI capacity of a country will serve as the unequivocal measure of its competitiveness from now on. With a vision to achieve a global top-three status in AI capacity, Chairman Lee said that the government is making all-out efforts to promote the AI industry. In this regard, Chairman Lee introduced plans to (a) promote large scale investments in AI and overhaul the current AI infrastructure in the financial industry, (b) foster conditions and set regulatory grounds to supply capital to fintech businesses, (c) and establish foundations for introducing innovative financial services. In addition, going beyond the simple convergence of AI technology with fintech services, Chairman Lee said that the Korean government will seek bold innovation in digital finance to fully embrace the potential of AI and facilitate the personalization of fi
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Nov 24, 2025

KoFIU Holds Meeting with Financial Sectors and Discusses Ways to Strengthen AML Efforts in Transborder Crimes

The Korea Financial Intelligence Unit (KoFIU) held a meeting with relevant industry groups and discussed ways to bolster anti-money laundering (AML) efforts in transborder crimes on November 24. Todays meeting was organized with aims to establish a more effective and rigorous response system on money laundering that has links to the transborder crimes targeting domestic citizens from abroad. At the meeting, officials reviewed the current transborder AML response situation in the banking sector and discussed the role of the government and financial companies to further strengthen AML efforts in transborder crimes. First, in cooperation with financial companies, the KoFIU will analyze suspicious transaction types linked to transborder crimes, and financial companies will report every suspicious transaction deemed to be linked to transborder crime to the KoFIU. Last week, the KoFIU and the banking sector conducted an analysis on certain types of suspicious transactions and discussed a standard for extracting and sorting out similar types. These suspicious transaction reports (STR) from banks and nonbanks will be thoroughly analyzed by the KoFIU for the identification and detection of criminal activities by investigation authorities. Second, the KoFIU will strengthen internal control on AML activities of financial companies. A recent inspection by the Financial Supervisory Service revealed inadequacies in the management and supervision of AML activities for banks overseas branches and subsidiaries. Thus, the KoFIU plans to bolster internal control on AML activities of financial companies by requiring them to more rigorously perform customer due diligence (CDD) on suspicious customers and having them prioritize on-site inspections on their branches and subsidiaries located in Southeast Asia. When making periodic inspections on financial companies AML activities in the future, the KoFIU will more thoroughly look into their handling of overseas branches and subsidiaries. T
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Nov 20, 2025

Industrial Bank of Korea Gains Banking License from Polish Financial Supervision Authority (KNF)

The Financial Services Commission announced that the Polish Financial Supervision Authority (Komisja Nadzoru Finansowego, or KNF) granted a banking license to the Poland subsidiary of the Industrial Bank of Korea (IBK) on November 19 (Central European Time). This follows KNFs issuance of the preliminary license authorizing the establishment of IBKs subsidiary in Poland in November 2024. The final approval comes two and a half years after the IBK first set up a local office in Wroclaw, Poland in May 2023. The FSC has been making continuous efforts to boost financial cooperation with foreign financial authorities,and the IBKs gaining of a banking license in Poland demonstrates the effectiveness of global financial cooperation in facilitating overseas expansion of Korean financial companies. From the time the IBK first applied for the establishment of a subsidiary in Poland in March 2024, the FSC had high-level meetings with its Polish counterpart (KNF) on two different occasions and requested strong support for Korean banks operation in Poland. This led to the signing of a memorandum of understanding (MOU) in November 2024 and the strengthening of bilateral cooperation. Since most of non-European financial companies tend to enter the EU market by establishing a subsidiary (EU headquarter) in London or Frankfurt, the IBKs Poland subsidiary will become the first and only non-European bank with its EU headquarter in Poland. As the only Korean bank subsidiary established in Poland overseeing its overall EU operations, in accordance with EUs single passport rights, the IBKs Poland subsidiary will not only be able to operate in Central European countries, such as the Czech Republic, Hungary, and Slovakia, but serve as a bridge to expand its business operations to Western European countries, such as France and Germany. At first, the IBKs Poland subsidiary is expected to strengthen the provision of financial support made available to Korean SMEs doing business in Eastern Euro
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Nov 19, 2025

FSC Announces Designation of CFIBEs and Capital Market Rules Change to Propel Supply of Venture Capital

The Financial Services Commission announced the designation of comprehensive financial investment business entities (CFIBEs)at the 20th regular meeting held on November 19. The FSC decided to designate Korea Investment Securities and Mirae Asset Securities as CFIBEs with the minimum equity capital level of KRW8 trillion, while Kiwoom Securities has been designated as a CFIBE with the minimum equity capital level of KRW4 trillion. Kiwoom Securities has also been authorized to engage in a short-term financing business. The newly designated CFIBEs have each been making relevant preparations for the operation of investment management account (IMA) and promissory note services, by acquiring the satisfactory level of personnel and facilities capacities, preparing internal control mechanisms, and setting up measures to prevent conflicts of interest. Korea Investment Securities and Mirae Asset Securities plan to develop IMA products with the goal of introducing them in the market within this year. Kiwoom Securities also plan to introduce promissory notes within this year. This will help to open up and diversify investment options and mechanisms made available for the public and facilitate the sharing of profits from CFIBEs asset management services. Meanwhile, the government approved the revision bill for the Enforcement Decree of the Financial Investment Services and Capital Markets Act (FSCMA) at the cabinet meeting held on November 18, 2025. The revised rules, which make CFIBEs subject to the supply of venture capital, are intended to propel the financial investment sectors transition toward productive finance. Along with expected revisions to subordinate rules and regulations, the revised Enforcement Decree will take effect next week (between November 25 and 27). Key Revision Details Requiring CFIBEs to supply venture capital To promote more active supply of venture capital from the CFIBEs that are engaged in IMA and promissory note services, the revised rules will make
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Nov 17, 2025

FSC Proposes Measures to Improve Corporate Disclosures to Enhance Market Accessibility and Shareholder Rights

The Financial Services Commission, the Financial Supervisory Service, and the Korea Exchange have been working to make improvements to corporate disclosure rules since there have been growing demands from both domestic and overseas investors in seeking information about listed companies.However, it has been suggested that further improvements are needed in order to make capital markets more accessible for global investors and to enhance information provision to make it easier for shareholders to better exercise their rights. In this regard, the FSC, FSS, and KRX have prepared the following measures to strengthen rules on English disclosures and the disclosure of information on annual general meeting of shareholders (AGMs) to help enhance market accessibility and improve shareholder rights. Key Measures Expanding Application of English Disclosure to Boost Market Accessibility a) Mandatory English disclosure: Entering phase II and preparing for phase III Currently, large KOSPI-listed companies with assets worth KRW10 trillion or more (111 companies as of end-2024) are submitting disclosures in English on material information (26 key items), such as information pertaining to corporate governance structure or reorganization, settlement of accounts, and securities issuance, within three business days of filing their original disclosures in Korean with the KRX (effective from January 2024). Starting from May 1, 2026, the mandatory English disclosure requirement will enter into a second phase. The scope of KOSPI-listed companies subject to the mandatory English disclosure requirement will be expanded to those with assets worth KRW2 trillion or more (265 companies as of end-2024). The disclosure items subject to the mandatory English disclosure will also be expanded to all disclosure items required by KRX rules, including material information in its entirety (55 items), fair disclosure, and inquired disclosure. The time required for companies to submit English disclosures a
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Nov 14, 2025

Low-interest Loan Support Made Available for Debtors in Restructuring with 7-yr Plus Overdue Debts

The Financial Services Commission and the Credit Counseling and Recovery Service (CCRS) announced that a new low-interest loan support program (New Leap Loan) in the amount of KRW550 billion will be made available from November 14 to assist debtors already undergoing a restructuring process with 7-year or more overdue debts. The FSC held a meeting with the CCRS, six major banks, and Seoul Guarantee Insurance (SGI) on November 14 where the participating banks signed an MOU with the CCRS and SGI detailing their commitment to the New Leap Fund program. An initial announcement for this program was previously made on October 1 with the introduction of a new long-term debt restructuring program (New Leap Fund). The newly available low-interest loan support program (New Leap Loan) is intended to assist those who fall outside the coverage of the New Leap Fund program. More specifically, New Leap Loan will provide low-interest loans to those who have already entered into a debt restructuring process with 7-year or more overdue debts and have been making debt payments accordingly for at least six months. The maximum loan support available per individual will be KRW15 million at a lending rate of 3.0 percent to 4.0 percent annually. The total amount of support available for the program is KRW550 billion, and the program will be operated on a temporary basis for three years. Application is available from microfinance support centers across the country and on the website of the CCRS. Depending on individual circumstances, applicants may also be eligible to receive employment counseling and welfare assistance. At the same time, the CCRS will also make available a special debt restructuring support program for debtors with 5-year or more overdue debts who also fall outside the coverage of New Leap Fund. This will offer the same level of debt restructuring support made available by New Leap Fund, such as principal reduction of 30 percent to 80 percent, installment payments for maxi
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Nov 13, 2025

Household Loans, October 2025

In October 2025, the outstanding balance of household loans across all financial sectors increased KRW4.8 trillion (preliminary), rising at a faster pace compared with the previous month (up KRW1.1 trillion). (By Type) Home-backed mortgage loans rose KRW3.2 trillion, growing at a slower pace compared with the previous month (up KRW3.5 trillion). Banks (up KRW2.5 trillion up KRW2.1 trillion) saw the pace of growth decelerating, while nonbanks (up KRW1.1 trillion up KRW1.1 trillion) maintained a similar pace of growth from the previous month. Other types of loans edged back up KRW1.6 trillion from the decline of KRW2.4 trillion seen a month ago due mainly to the rise in credit loans (down KRW1.6 trillion up KRW0.9 trillion). (By Sector) In October 2025, household loans in the banking sector rose KRW3.5 trillion, growing at a faster pace compared with the previous month (up KRW1.9 trillion). Banks own mortgage loan products (up KRW1.4 trillion up KRW1.1 trillion) and policy-based loans (up KRW1.0 trillion up KRW0.9 trillion) both saw the pace of growth decelerating from a month ago. Other types of loans (down KRW0.5 trillion up KRW1.4 trillion) in the banking sector shifted back up from the decline seen in the previous month. In the nonbanking sector, household loans grew KRW1.3 trillion, turning back up from the decline of KRW0.8 trillion seen a month ago. Insurance companies (down KRW0.3 trillion up KRW0.1 trillion) and specialized credit finance businesses (down KRW1.1 trillion up KRW0.2 trillion) saw the volume of household loans shifting back up. Mutual finance businesses (up KRW1.0 trillion up KRW1.1 trillion) saw the pace of growth accelerating, while savings banks (down KRW0.5 trillion down KRW0.2 trillion) saw a slower pace of decline compared with the previous month. (Assessment) In October 2025 (up KRW4.8 trillion), the pace of household loan growth decelerated from the same month a year ago (up KRW6.5 trillion) but accelerated from the previous month (up KR
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Nov 04, 2025

Revised Rule Approved to Strengthen CDD Requirement on Specialized Credit Finance and Consumer Credit Businesses

The Financial Services Commission announced that the government approved a revision bill for the Enforcement Decree of the Special Act on the Prevention of Loss Caused by Telecommunications-based Financial Fraud and Refund for Loss (the Act hereinafter) at the cabinet meeting held on November 4. The revision intends to strengthen the responsibility of financial companies in the prevention of loss caused by financial frauds or vishing (voice phising) scams. Under the revised rule, specialized credit finance businesses (excluding the ones specialized in new tech financing) and consumer credit businesses that have KRW50 billion or more in assets will be newly subject to the customer due diligence (CDD) duty in their handling of loan services. This is a follow-up to the comprehensive measures for strengthening anti-vishing efforts introduced in March this year. In order to prevent loss caused by vishing scams and facilitate a quick recovery of the lost money, the Act prescribes rules on account freeze and restoration of lost money for victims, which have thus far been applied mainly to the account-issuing financial institutions, such as banks, savings banks, and mutual finance businesses. However, since there are cases where stolen personal information is being used by scammers to take out loans, the need to expand the application of CDD obligation to loan businesses, such as specialized credit finance businesses and consumer credit businesses, is growing in order to more effectively counter and prevent vishing scams. Therefore, pursuant to the revised rule, specialized credit finance businesses (excluding the ones specialized in new tech financing) and consumer credit businesses that have KRW50 billion or more in assets will need to conduct CDD in their handling of loan services (via telephone, mobile phone, face-to-face, video call, etc.). When found to be in violation of the CDD obligation, it may be possible to impose an administrative fine of up to KRW10 million an
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Oct 29, 2025

AI-based Anti-phising Sharing and Analysis Platform (ASAP) Launched to Bolster Protection against Financial Scams

The Financial Services Commission held a meeting with related authorities and organizations, financial industry groups, and private sector experts on October 29 and announced the launching of AI-based Anti-phising Sharing and Analysis Platform (ASAP). At the meeting, participants had in-depth discussions on the governments policy responses to more effectively prevent vishing scams. Anti-phising Sharing and Analysis Platform (ASAP) Key Details With the launching of ASAP, all financial companies (about 130 entities) will be able to share and make use of vishing related data (9 types and 90 categories in total) on a real time basis. The nine different types of data subject to the sharing are as follows(a) information about victims account (14 categories), (b) information about the account used in vishing scam (18 categories), (c) information about the account suspected to be linked to vishing scam or victim (15 categories), (d) information about the overseas account verified to have been used in vishing scam (8 categories), (e) other types of information sought for investigation (12 categories), (f) information about fake IDs (8 categories), (g) information about the potential victim uncovered through police investigation (4 categories), (h) information about phising sites (5 categories), and (i) information about malicious apps (6 categories). In particular, information about victims account, the account used in vishing scam, and the overseas account verified to have been used in vishing scam will be shared among all participating institutions on a real time basis to more proactively and quickly cut off criminal activities. The types of information about suspicious accounts deemed to have been involved in vishing scams (identified through financial companys fraud detection system) and other types of suspicious accounts having frequent transactions with the former, as well as the types of information about the suspicious transaction activities uncovered through police
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Oct 28, 2025

2025 Korea Fintech Week Scheduled to Kick Off Nov 26 Focusing on Potential of AI and Personalization of Finance

The Financial Services Commission announced on October 28 that this years Korea Fintech Week is scheduled to kick off on November 26 for three days until November 28 at aT Center in Seoul. Joined by fintech businesses, financial companies, relevant organizations, and overseas governments and institutions, the three-day expo will be held under the theme of Fintech X AI: The Personalization of Finance to showcase the future trend of finance and new ecosystems fostered by the convergence of fintech and artificial intelligence (AI). The 2025 Korea Fintech Week will feature opening events, K-Fintech 30 selection ceremony, and a variety of seminars, side events, and experience programs. A total of 99 exhibition booths and 128 participating businesses and organizations will make this years fintech expo the largest ever in scale. Moreover, this year, a number of global unicorns will participate and national fintech pavilions will be set up. In addition, all seminar proceedings will be broadcast live (with interpretation in English) to make simultaneous participation from overseas possible and to more effectively promote Koreas fintech industry to global audiences. Opening events will start with a welcoming speech by FSC Chairman Lee Eog-weon and feature speeches by Israeli Ambassador to Korea Rafael Harpaz and Global Finance Technology Network (GFTN) CEO Sopnendu Mohanty. Following the opening events, the K-Fintech 30 Selection Ceremony will be held, designating 10 promising Korean fintech businesses to the list of K-Fintech 30 for this year. In the future, the selected entities will be able to receive support through policy funds, investment IR, and consulting for regulatory exemption. Exhibition halls will be organized into (a) fintech hall, (b) finance hall, (c) global hall, and (d) collaboration hall. A total of 128 businesses and organizations will showcase their products or services in 99 exhibition booths. This year, the size of global hall has been expanded signific
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Oct 22, 2025

Government Approves Capital Market Rule Changes to Strengthen Response against Unfair Trading Activities

The Financial Services Commission announced on October 22 that the government has approved regulatory changes regarding the Enforcement Decree of the Financial Investment Services and Capital Markets Act (FSCMA) and subordinate regulations with aims to strengthen early response and bring more stern measures against unfair trading activities in capital markets. The revised Enforcement Decree will go into effect from October 28 and the subordinate regulations from October 22. Key Revision Details I. Establish a regulatory ground to upgrade KRXs surveillance system to make it more individually-focused (from account-based system previously) Under the current system, the KRX performs market surveillance based on accountsnot based on individualsas it is not authorized to make use of investors personal information. As such, the scope of surveillance remains too broad and it has been difficult to identify the activities linked to the same entity. Thus, this revision authorizes the KRXs market surveillance committeein its surveillance capacityto process investors personal data (resident registration number in pseudonymized form). Based on this, the KRX will be able to perform more individually-focused market surveillance. This transition from the current account-based to a more individual-centered approach will help to boost the efficiency in market surveillance as surveillance targets will be reduced by about 39 percent. Moreover, it will allow the authorities to more effectively and quickly find out and identify whether certain activities have been carried out by the same entity, what and how much role did the rule-breaker play in manipulating stock prices, and whether there was cross trading involved. This individual-centered market surveillance system at the KRX will begin to operate from October 28 after conducting a series of test operations with business members (57 securities firms in total). II. Strengthen the criteria for imposing penalty surcharges and introduce a
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Oct 22, 2025

Life Insurance Policyholders Will be Able to Convert Death Benefits into Lifetime Access in Retirement

The Financial Services Commission held a taskforce meeting on October 22 to have a final review of the preparatory work prior to the launch of the products enabling life insurance policyholders to have access to death benefits early in their retirement. From October 30, life insurance policyholders will be able to tap into death benefits as retirement income. On October 23, eligible policyholders will be contacted individually and receive notifications from the following five life insurance companiesSamsung, Hanwha, Kyobo, Shinhan Life, and KB Life. As of the end of September 2025, the total number of eligible life insurance contracts stood at 414,000 with about KRW23.1 trillion in benefits. By January 2, 2026, the rest of life insurers will follow suit and individually contact eligible policyholders for notification a week prior to the scheduled launch. This will bring up the total number of eligible life insurance contracts to 759,000 with the amount of benefits expanding to KRW35.4 trillion. Since the newly introduced products are intended for policyholders aged 55 years old and over, application will only be available face-to-face with tellers via customer service centers or branch offices. To make service experience more convenient, insurance companies will provide simulations and comparisons demonstrating individual customers expected amount of benefits based on the customers chosen ratio and period for converting death benefits into lifetime access. Since the amount of policyholders lifetime access is determined by the amount of paid-in policy premiums, more senior policyholders are expected to receive greater amounts in lifetime access. Thus, policyholders are advised to choose the starting point and the duration of conversion based on individual circumstances. During the lifetime access conversion period, policyholders may choose to suspend or opt out entirely from the program early, and can also choose to reenter the program thereafter. The government plan
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Oct 16, 2025

Household Loans, September 2025

In September 2025, the outstanding balance of household loans across all financial sectors increased KRW1.1 trillion (preliminary), rising at a slower pace compared with the previous month (up KRW4.7 trillion). (By Type) Home-backed mortgage loans went up KRW3.6 trillion, growing at a slower pace compared with the previous month (up KRW5.1 trillion). Banks (up KRW3.8 trillion up KRW2.5 trillion) and nonbanks (up KRW1.3 trillion up KRW1.1 trillion) both saw the pace of growth decelerating. Other types of loans dropped KRW2.4 trillion, declining at a faster pace compared with the previous month (down KRW0.4 trillion) with credit loans falling at an expanded pace (down KRW0.3 trillion down KRW1.6 trillion). (By Sector) In September 2025, household loans in the banking sector rose KRW2.0 trillion, slowing down from the growth of KRW4.1 trillion a month ago. Banks own mortgage loan products (up KRW2.7 trillion up KRW1.4 trillion) rose at a slower pace, while policy-based loans increased at a similar level from a month ago (up KRW1.1 trillion up KRW1.1 trillion). Other types of loans (up KRW0.3 trillion down KRW0.5 trillion) in the banking sector shifted back down from the growth seen a month ago. In the nonbanking sector, household loans edged down KRW0.9 trillion, shifting back down from the growth of KRW0.6 trillion in the previous month. Insurance companies (down KRW0.5 trillion down KRW0.2 trillion) saw the pace of decline decelerating, while specialized credit finance businesses (down KRW0.2 trillion down KRW1.1 trillion) saw the pace of decline accelerating. Mutual finance businesses (up KRW1.2 trillion up KRW0.9 trillion) saw the pace of growth slowing down, while savings banks (up KRW0.03 trillion down KRW0.5 trillion) saw a decline from the growth seen a month ago. (Assessment) In September (up KRW1.1 trillion), household loans grew at a notably slower pace compared with the previous month (up KRW4.7 trillion) and the same month a year ago (up KRW5.4 trillion).
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Oct 15, 2025

Authorities Unveil Measures to Bolster Management over Housing Loan Demand with Aims to Stabilize Housing Market

The Financial Services Commission held a meeting on household debt with officials from related ministries, financial institutions, and industry groups on October 15 and announced additional measures to strengthen household loan management for implementing the governments housing market stabilization plan. At the meeting, officials assessed that household debt growth has been largely stabilized since the introduction of June 27 household debt management measures. However, in certain districts of the Seoul metropolitan area, housing prices have continued to move upward. With expectations for rate cuts and continuation of brisk housing market conditions, it is concerning that the market overheating in certain areas may spread to other regions. As such, the financial authorities viewed that it is necessary to introduce additional measures to preemptively control demand for housing loans. Key Measures Applying Different Levels of Maximum Mortgage Loans Based on House Prices (Effective from Oct. 16) The maximum amount of mortgage loan a borrower is eligible to take out for purchasing a house in the Seoul metropolitan and speculation regulated areas will be determined differentially based on the price (market value) of house. For houses with market value of up to KRW1.5 billion, the maximum amount of mortgage loan will remain the same at the current level of KRW600 million. For houses priced at more than KRW1.5 billion and up to KRW2.5 billion, the maximum amount of mortgage loan will be reduced to KRW400 million from the current level of KRW600 million. For houses valued at over KRW2.5 billion, the maximum amount of mortgage loan will be reduced to KRW200 million from the current level of KRW600 million. The differentially determined cap on mortgage loans will help to more effectively control demand for purchasing highly priced homes in the Seoul metropolitan and speculation regulated areas using mortgage loans. Tightening Stressed DSR Rule (Effective from Oct. 16) The cu
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Oct 01, 2025

Rule Change on ESG Rating and Disclosure to Enhance Financial Risk Management Related to Industrial Accidents

The Financial Services Commission approved a revision to the Korea Exchange (KRX) disclosure rules on October 1 requiring listed companies to timely disclose information regarding the occurrence of industrial accidents to strengthen the management of financial risks associated with industrial accidents. The FSC also introduced a rule change proposal intended to strengthen the annual and semi-annual disclosure duties regarding the occurrence of industrial accidents. In addition, ESG rating institutions have made changes to their ESG rating guidance incorporating the occurrence of industrial accidents in the evaluation of corporate ESG practices. First, the revised ESG rating guidance incorporating industrial accidents into the evaluation of corporate ESG practices will take effect from October 1. Prior to this, socially controversial issues including the occurrence of industrial accidents were considered for evaluation by ESG rating institutions on a voluntary and non-binding basis. However, with the growing impact of industrial accidents on corporate valuations, it has become necessary to more closely manage this issue. As such, ESG rating institutions have made an update to their ESG rating guidance incorporating major controversial issues, such as industrial accidents, into the evaluation of corporate ESG practices, effective from October 1. Along this line, ESG rating institutions will also need to make efforts to enhance the quality and capacity in their rating services to more systematically reflect financial risks associated with industrial accidents and boost confidence on their ESG rating services. The KRX will regularly make comparison and assessment on ESG rating institutions compliance with the updated guidance. Second, listed companies will be subject to a timely disclosure of information regarding the occurrence of industrial accidents. Currently, listed companies are required to file KRX disclosures only when accruing a significant loss in properties o
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Oct 01, 2025

A New Long-term Debt Restructuring Program Launched to Assist Vulnerable Groups and Small Merchants

The Financial Services Commission and the Korea Asset Management Corporation (KAMCO) launched a new long-term debt restructuring program (New Leap Fund) intended to support small merchants and vulnerable groups on October 1. A Summary of FSC Chairmans Remarks FSC Chairman Lee Eog-weon attended the launching event and delivered congratulatory remarks, highlighting the significance of New Leap Fund as more than just a debt workout program. Vulnerable groups and small merchants have continued to suffer from increased debt payment challenges since the pandemic era. In this regard, Chairman Lee said that this program will provide a new foundation to leap forward for many of those who have not been able to engage in normal economic activities due to their delinquent debt status. To prevent moral hazard in the future, Chairman Lee said that authorities will make sure to carry out rigorous evaluations on debtors repayment capabilities. Chairman Lee also stated that authorities will work to expand support for those who have been diligently making debt payments but fall outside the qualification under this program, while continuing to work on providing more fundamental solutions that can help to resolve the problem of long-term debt delinquency. Further Plan The New Leap Fund program will start purchasing delinquent debts in October from the creditor institutions that have signed an agreement for about a year. From then, a rigorous examination of debtors wealth and income situations will be carried out before proceeding with the write-offor restructuringprocess from 2026. However, for those under the basic living welfare assistance program, a prompt write-off process will be made available in 2025 without examining debtors repayment capabilities. The total size of long-term delinquent debts qualified for support under this program is forecast to be about KRW16.4 trillion with about 1.134 million individuals receiving benefits. Since the program will directly purchase delinque
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Sep 30, 2025

KoFIU Unveils H1 2025 Survey Result on Virtual Asset Service Providers

The Korea Financial Intelligence Unit (KoFIU) conducted a survey on 25 registered virtual asset service providers (VASPs) to assess the current state of the domestic virtual asset market and keep relevant statistics up to date. Survey Overview (Respondents) 25 VASPs(17 exchange service providers and 8 custody and wallet service providers) (Survey Method) Data collected from VASPs (Period Covered) January 1, 2025 to June 30, 2025 Key Survey Findings for H1 2025 The price increases in virtual assets and expansion of market size observed into the second half of 2024 slowed down in the first half of 2025. Compared with the previous six-month period, the number of users eligible to trade (up 1.07 million or 11%) went up. However, average daily trading volume (down KRW0.9 trillion or 12%), total operating profits (down KRW134.8 billion or 18%), market capitalization (down KRW15.4 trillion or 14%), and total amount of deposits (down KRW4.5 trillion or 42%) all decreased. However, over the same six-month period, the coin-only exchange market saw growth in average daily trading volume (up KRW450 million or 286%) and market capitalization (up KRW366.5 billion or 298%), despite continuing market dominance by KRW-based exchange service providers. External transfers of virtual assets to the registered entities increased in terms of both travel rule transactions (up 4%) and to the whitelisted overseas entities and personal digital wallets (up 4%). The total size of virtual assets in custody and wallet services (down KRW0.7 trillion or 50%) declined significantly due to drops in base prices and their number of users (down 523 or 41%). * Please refer to the attached PDF for details.
Attachment 1