Press Releases - Financial Services Commission

Press Releases

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Nov 18, 2020

FSC to Implement a New Regulatory Regime for Financial Benchmarks

The FSC enacted an enforcement decree and a supervisory regulation to provide details for the management of financial benchmarks as the Financial Benchmark Act (hereinafter the Act)1 will go into effect on November 27, 2020. KEY PROVISIONS (ESTABLISHMENT OF A REVIEW COMMITTEE) The FSC can establish a review committee to discuss the designation and cancellation of critical benchmarks and other important matters regarding financial benchmarks. (OPERATIONAL RULE ON CALCULATION) The enforcement decree provides details that should be included in an operational rule established by an administrator of critical benchmarks. The operational rule is aimed to stipulate requirements for administrators of critical benchmarks, contributors of input data, and users of critical benchmarks. ▪ Administrators are required to establish rules regarding methods and procedures to calculate critical benchmarks; prevention of conflict of interests; and management and supervision of input data contributors, etc. ▪ Contributors are required to establish rules regarding procedures for preservation and submission of input data; qualification and responsibility of the person in charge of data submission; and internal control, etc. ▪ Users are required to provide consumers with a document explaining the definition of critical benchmarks, methods and procedures of calculation, etc. (CRITICAL BENCHMARK MANAGEMENT COMMITTEE) The Act requires administrators of critical benchmarks to establish a committee for the management of critical benchmarks. The enforcement decree provides details regarding the composition and operation of the management committee. ▪ (COMPOSITION) The management committee shall consist of more than five members with expertise including at least two independent experts. More than half of the members shall have no conflict of interests. ▪ (RESPONSIBILITIES) The committee is responsible for deliberation and decision-making regarding important matters e.g. the appropriatene
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Nov 16, 2020

Government Lowers Statutory Cap on Lending Rates to Reduce Debt Burden on Low-income Borrowers

The government plans to lower a statutory cap on lending rates from the current 24% to 20% to reduce debt servicing burden on low-income borrowers.Since the maximum lending rate was lowered to 24% in 2018, there have been discussions for further cuts, given low interest rates and the need for easing financial burden on low-income households.The 20% statutory cap is expected to benefit 2.08 million borrowers, 87% of those who borrowed at higher rates, by saving KRW483 billion annually in debt servicing burden.In order to more flexibly respond to changes in market conditions, the government intends to adjust the maximum lending rates by revising the enforcement decrees on the Act on Registration of Credit Business and Protection of Finance Users and the Interest Limitation Act. The new statutory cap will apply in the second half of 2021.The government will also come up with complementary measures to ensure low- income borrowers’ access to financial services and better protect them from predatory practices by illegal lenders.* Please refer to the attached PDF for details.
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Nov 13, 2020

FSC Unveils Measures to Curb Credit Loans

Vice Chairman Doh Kyu-sang presided over the 29th financial risk assessment meeting on November 13. At the meeting, Vice Chairman unveiled the government’s plans to more effectively manage household debt and discussed the implementation of the COVID-19 financial support programs.BACKGROUNDHousehold debt in Korea expanded in the past two decades as the economy began to grow in the aftermath of the Asian financial crisis of 1997. In that period, the qualitative structure of household debt continued to improve due to an increase in the proportion of fixed-rate lending and installment payments. The soundness of household debt also improved as the volume of financial assets held by households has been more than twice that of financial debt since the end of 2009, and the default rate across all financial sectors has fallen to 0.70 percent at the end of June 2020 from 1.74 percent at the end of 2009. However, an excessive growth of household debt raises concerns about downside risks to the economy and financial system as the pace of household debt growth in relation to GDP accelerated from 82.9 percent in 2014 to 97.9 percent in 2019. Thus, there needs to be a continuous effort to slow down and more effectively manage the pace of the growth.The level of growth in household debt began to stabilize from the end of 2016. However, a shift toward expansionary policy this year in response to COVID-19 led to an upward trend with a rapid rise in credit lending in particular. Although increased borrowing by lower income households may be inevitable amid a prolonged pandemic situation, the possibility of credit loans moving into real estate markets poses risks. Therefore, the following measures have been drawn up to prevent risks.KEY MEASURESThe government will continue to maintain strong lending support for lower income households and small-scale businesses through existing stimulus programs amid a protracted pandemic situation. At the same time, efforts to more proactively manag
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Nov 12, 2020

4th Digital Finance Meeting Outlines Three Key Principles for MyData Industry

Vice Chairman Doh Kyu-sang presided over the 4th consultative body meeting on digital finance on November 12 and laid out the following three key principles for the MyData industry—(a) guaranteeing consumer rights to data ownership, (b) improving safety and scalability of MyData services and (c) creating a cooperative ecosystem for all stakeholders.The following is a summary of Vice Chairman Doh’s remarks.SIGNIFICANCE OF MYDATA INDUSTRYMyData industry has been introduced to strengthen consumer rights to data ownership and cultivate new data industries. With MyData services, individuals will be able to manage within a single platform not only their credit data from different financial institutions, such as banks, credit card companies and insurance companies, but also non-financial information, such as data on telecommunication and public utilities fees. There have been similar attempts in other countries, such as the EU, the UK and Japan, but their services have been restricted to bank account data.MyData industry in Korea is the first in its kind, offering an integrated credit data management platform beyond banking services. Currently, a preliminary license application review is taking place on thirty-five existing MyData business entities, with the application results expected to be announced at the beginning of next year. The market entrance of MyData businesses as new players will bring about a few changes. First, consumers will be able to practice data ownership instead of financial institutions in which consumer data is stored. Consumers’ control over their own data will be enhanced as they can easily check, manage, correct or delete according to their needs. Second, there will be increased competition and innovation in the financial industry. Large financial companies will no longer have a monopoly over consumer data, but instead be encouraged to compete over consumer utility. Lastly, MyData businesses will help create quality jobs in ICT and fintech s
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Nov 11, 2020

Household Loans, October 2020

The outstanding balance of household loans in all financial sectors rose KRW13.2 trillion from the previous month in October 2020 (up 7.1% year-on-year). The household loan balance increased KRW10.6 trillion in the banking sector and KRW2.5 trillion in the non-banking sector.By type, mortgage loans increased KRW7.2 trillion in October, rising KRW0.1 trillion from the previous month (up KRW3.2 trillion y-o-y). In the banking sector, mortgage loans expanded KRW6.8 trillion while jeonse loans grew at a slower rate (up KRW3.0 trillion m-o-m). Mortgage lending by non-banks saw an increase of KRW0.4 trillion from the previous month. Other types of loans went up KRW6.0 trillion as credit-based lending by both banks and non-banks rose KRW3.8 trillion and KRW2.1 trillion, respectively, due to seasonal factors.The financial authorities will closely monitor trends as the volume of household loans generally tends to expand in the fourth quarter. While considering the need to minimize downside effects to lower income households and small-scale businesses, the government will prepare plans to more effectively manage household debt.* Please refer to the attached PDF for details.
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Nov 10, 2020

Volume of Public Financial Data Available on Open Financial Database Reaches 210 Million

The FSC announced that the volume of public financial data made available through the open financial database reached 210 million, rising about 377 percent from 44 million during the test run period between April and June this year. In addition, user satisfaction results showed that about 87.3 percent of users responded that they were well aware of the open financial database service, while some 83.3 percent of respondents stated that they were content with the service due to the availability of data usage at free of charge, abundance and diversity in data as well as accuracy.With a memorandum of understanding signed between the FSC and participating institutions, the FSC will continue to work on the advancement of the open financial database system. In close coordination with relevant institutions, the government will make concerted efforts to expand data diversity and continue to improve user satisfaction.* Please refer to the attached PDF for details.
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Nov 10, 2020

Government Approves Revised Rules on Vishing Prevention and Electronic Financial Transactions

The government approved revisions to the rules on vishing prevention and electronic financial transactions at a cabinet meeting held on November 10.The revision to the enforcement decree of the Special Act on the Prevention of Loss Caused by Telecommunication-based Financial Fraud and Refund for Loss, which is scheduled to go into effect on November 20, creates a legal form for victims of vishing scams to be able to report phone numbers associated with vishing while filling damage claims at the same time. This will help authorities more effectively block phone numbers associated with vishing.The revision to the enforcement decree of the Electronic Financial Transactions Act, which is scheduled to go into effect on November 20, establishes a legal ground for financial institutions to check personal identification from customers when returning lost cards at ATMs, etc.* Please refer to the attached PDF for details.
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Nov 06, 2020

Government Selects 247 Innovative Firms for Comprehensive Support

The government announced the selection of 247 business entities as part of the plans to cultivate one thousand innovative firms over the next three years at the National Economic Advisory Council meeting held on November 6. The selected businesses will be eligible to receive comprehensive financial and non-financial support. At the meeting, Chairman Eun Sung-soo spoke about the important role of finance in promoting innovation and preparing for a post-pandemic era.BACKGROUNDThe government introduced the plans to provide targeted support to more than one thousand innovative firms at the 12th Meeting of the Central Economic Response Headquarters on July 30 and has made the first round selection of thirty-two businesses from the newly emerging sectors and materials, parts and equipment industries. Through close coordination between the relevant ministries, the government chose 247 innovative firms for the second round of selection in the areas of high-tech manufacturing and automation, chemical and new materials, energy and ICT. The selected SMEs have a high potential for growth and represent different stages of business development.CHAIRMAN’S REMARKSThe government has prepared a diverse set of policies to bring about an economic recovery and help boost the competitiveness of industries. First, the plans to cultivate more than one thousand innovative enterprises over the next three years are designed to provide comprehensive financial support tailored to the needs of selected enterprises. For highly promising companies, the public sector will also provide assistance in raising investments from the private sector to facilitate their scale-up strategies.Second, the Korean New Deal fund in the amount of KRW20 trillion will be created to help channel market liquidities toward productive sectors. The K-New Deal fund makes it possible for retail investors to share profits from the K-New Deal investment projects, while ensuring a steady supply of venture capital to innovati
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Nov 06, 2020

FSC Holds Meeting on Financial Market Conditions

FSC Chairman Eun Sung-soo held a meeting to review the effects of the US presidential election on financial markets at home and abroad on November 6. As there are possibilities of growing market volatilities in the financial markets in the wake of the US presidential election, the FSC will continue to stay alert and closely monitor market conditions.At the meeting, Chairman Eun stressed the importance of maintaining market stabilization efforts as well as legislative efforts to improve rules and regulations, such as strengthening sanctions on illegal stock short selling activities, allowing more short sale opportunities for retail investors and improving the current IPO system.Chairman Eun also discussed the importance of maintaining strict public health safety and preventive measures at individual financial institutions in order to ensure that the spread of COVID-19 does not pose risks to financial markets. To this end, Chairman Eun called for strong cooperation from the authorities in preventing the spread of the virus.* Please refer to the attached PDF for details.
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Nov 04, 2020

FSC Selects Two More Fintechs as Designated Agents to Provide Financial Services

The FSC selected Finotek and Big Value as designated fintech firms on November 3, allowing them to provide financial services on behalf of Jeju Bank, BNK Kyongnam Bank and Kwangju Bank, and Pepper Savings Bank, respectively.Finotek will make available online refinancing brokerage platform service, which is expected to improve consumer convenience and efficiency while saving costs.Using big data and artificial intelligence technologies based on public data, Big Value will provide estimates on market prices and collateral values of atypical assets. Operating a big-data driven automated price estimation system for small-scale real estate properties, this service is expected to boost price transparency and enable financial businesses to improve their work efficiency.The FSC has selected a total of 33 designated fintech firms so far since May 2018. Application for the next round will be open from November 9, 2020 to January 8, 2021, with the results expected to be announced in March next year.* Please refer to the attached PDF for details.
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Nov 03, 2020

FSC to Work on COVID-19 Recovery, Cultivating Innovative Firms and Ensuring Market Stability

The FSC held the 28th financial risk assessment meeting via teleconference on November 3, chaired by Secretary General Kim Tae-hyun. During the meeting, officials discussed the progress in implementing the COVID-19 financial support including the small merchant support program and market stabilization measures.(CURRENT ECONOMIC AND MARKET SITUATION) Recent economic indicators suggest that the Korean economy is on a track to recovery. The economy grew 1.9 percent in the third quarter while industrial production, consumption and investment all increased in September. Consumer sentiment and the Business Survey Index rose in October as well. Domestic financial markets have also shown signs of stability. The volume of corporate bond, CP and short-term debt issuances has grown in September while credit spreads have been falling steadily, backed by the government’s efforts of launching the bond market stabilization fund and the SPV aimed at purchasing low-rated corporate bonds and CP. However, there still exist uncertainties surrounding the US presidential election and the scale of economic stimulus measures as well as concerns over a possible second wave of virus outbreaks. Thus, the government will closely monitor risk factors and take preemptive measures when necessary.(PROMOTING INNOVATION THROUGH STRONG FINANCING SUPPORT) Promoting the development of new technologies by innovative businesses is crucial to ensure a further progress in the post-pandemic era. The recently published banking sector technology assessment result for the first half of 2020 shows that the banking sector has been steadily working to improve their own technology capabilities and providing lending support to innovative businesses while serving as a conduit of the government’s emergency financial support programs. In addition, the best practice guidelines on sanctions exemptions for banks, established by the Korea Federation of Banks on October 26, provides more consistency in line with the ru
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Nov 03, 2020

FSC Proposes New Rules on AML Requirements on Virtual Assets

The FSC introduced a proposal of new rules to provide further details of anti-money laundering (AML) requirements on virtual assets under the revised Act on Reporting and Using Specified Financial Transaction Information (“the Act” hereinafter), which is scheduled to go into effect on March 25, 2021. The proposal will be available for public notice and comment for forty days from November 3 to December 14, 2020.KEY PROVISIONS(SCOPE OF VIRTUAL ASSET SERVICE PROVIDERS) The Act defines “virtual asset service provider (VASPs)” as business entities which engage in one or more of the following activities or operations: (i) purchase and sales of virtual assets; (ii) exchanges between virtual assets; (iii) transfer of virtual assets; (iv) safekeeping and administration of virtual assets; (v) intermediation or brokerages of virtual asset transactions; exchange of virtual assets; and (vi) other activities specified by the enforcement decree. The enforcement decree provides examples of VASPs subject to the Act such as virtual asset trading service providers, safekeeping/administration service providers, and digital wallet service providers. (SCOPE OF VIRTUAL ASSETS) The Act defines “virtual assets (VAs)” as digital tokens with economic value that can be digitally traded or transferred. The Act also provides a list of items which are not included in the scope of virtual assets: (i) digital tokens that cannot be exchangeable for fiat currencies, commodities and services and whose purpose of use is limited by the issuer; prepaid electronic payment methods or e-money; electronically registered stocks; electronic notes; electronic B/L; and others specified by the enforcement decree given the formats and features of transactions. The enforcement decree stipulates that prepaid cards, mobile gift cards and electronic bonds are excluded from the scope of VAs.(REQUIREMENTS FOR REAL-NAME ACCOUNTS) The Act mandates that VASPs use real-name accounts in their financial transacti
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Oct 28, 2020

Government to Closely Monitor Market Risks

The FSC held the 27th financial risk assessment meeting via teleconference on October 28, chaired by Secretary General Kim Tae-hyun. During the meeting, officials discussed issues surrounding the US presidential election, recent trends in the corporate bond and CP markets, anticipated discontinuation of LIBOR and other market conditions.(RISK MONITORING) Market experts noted that the US presidential election, soaring global asset prices and the possibility of an interest rate hike and currency appreciation as potential external risks to the Korean economy. First, uncertainties surrounding the outcome of the US presidential election and the ensuing policy disparities on COVID-19 stimulus, tax policy and the recovery pace pose risks to the economy. Second, as asset prices have seen a steep rise, price volatility may pose another risk. Third, due to expectations of stimulus measures, interest rates have gone up in advanced economies, and depending on the movement of the dollar and yuan, there exist downside currency risks in the Korean economy.(CORPORATE BOND CP MARKETS) Despite the general recovery trend in corporate bond and CP markets due to the government’s market stabilization efforts, there still exist disparities between low-rated and blue chip companies as well as between the corporate bond market and short-term money markets. The continuous decline of the spread of low-rated corporate bonds since June is a positive sign. However, the pace of the decline has been slow compared to high-rated bonds with the volume of total issuance yet to reach the level seen in the previous year. On the other hand, the low-rated CP and short-term debt issuance amount has recovered to a comparable level from the previous year. The FSC will continue to closely monitor corporate bond and CP markets and take stabilization measures using an SPV when deemed necessary.(DISCONTINUATION OF LIBOR) With regard to the anticipated discontinuation of LIBOR from 2022, financial institutions
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Oct 27, 2020

FSC Introduces New Rules on Financial Consumer Protection

The FSC introduced a proposal of an enforcement decree to provide details of the newly enacted legislation on financial consumer protection (“the Act” hereinafter), which is scheduled to go into effect on March 25, 2021.1 The proposal will be available for public notice and comment for forty days from October 28 until December 6.KEY MEASURES(SCOPE OF APPLICATION) The Act stipulates that financial products offered by banks, insurance companies, financial investment firms, specialized credit finance companies and savings banks will become subject to the new law. The proposal includes financial products offered by the Credit Union, P2P lending firms and registered private lenders.(ENTRY REQUIREMENT) The proposal establishes business registration requirements for both loan sales agents and independent advisory service providers. For both categories, online service providers are required to install an algorithmic program designed to prevent conflicts of interest for consumers.(INTERNAL CONTROL REQUIREMENT) In principle, all financial service providers are required to have internal control standards on financial consumer protection with the exception of small firms with less than five regular employees. Financial service providers should regularly improve their internal control standards if and when indicated by the regulators. The internal control standards should include the current best practice guidelines on financial consumer protection.2(SALES REGULATIONS) This proposal specifies rules improvements and introduces additional regulations that are necessary for the implementation of the six major sales regulatory principles under the Act.(CONSUMER RIGHTS) The Act introduces new safeguards by guaranteeing consumers the right to withdraw subscription and terminate unfair agreements, while delegating the scope of application through an enforcement decree. In this regard, the right to withdraw subscription applies to all loan and guarantee products in principle and the
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Oct 21, 2020

FSC Designates KFTC as Central Registry for P2P Transactions Data

The FSC announced its decision to designate Korea Financial Telecommunications Clearings Institute (KFTC) as the central registry responsible for storing and managing data on P2P financing transactions on October 21.KFTC will set up the computer and IT systems necessary to start functioning as the central registry on P2P transactions beginning on May 1, 2021. All information regarding P2P lending transactions will be stored and managed by KFTC. In addition, KFTC will be tasked with monitoring and managing the P2P lending and investment caps as prescribed by the Online Investment-linked Finance Act. The financial authorities will work to ensure that the central registry is ready to perform its duties as scheduled starting from May 1, 2021 and continue to closely supervise the sound development of the P2P lending sector.* Please refer to the attached PDF for details.
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Oct 21, 2020

3rd Digital Finance Meeting Unveils Ways to Advance Open Banking System

Vice Chairman Sohn Byungdoo presided over the 3rd consultative body meeting on digital finance on October 21 and introduced ways to further advance the open banking system and discussed concerns of both fintechs and big techs amid a rapidly changing digital environment.The following is a summary of Vice Chairman Sohn’s remarks.OPEN BANKINGOpen banking is an essential infrastructure in the era of digital finance. Many countries have already established the necessary legal frameworks that promote a further advancement of the open banking system. In Korea, open banking was launched in December 2019 and the number of users grew rapidly ever since with both banks and fintechs taking advantage of the vast opportunities provided by open banking to come up with new innovative solutions. As open banking has established itself as a critical digital payment infrastructure, the government will promote a further advancement of the open banking system to make it a hub of digital payment infrastructures.I. BOOST SCALABILITYThe key to open banking is opening up the traditionally exclusive accounts data and payments networks to financial enterprises and fintechs to promote the development of more innovative financial services. In this regard, the government will work to open up the open banking system to more market players beyond the banking sector and fintechs. Financial investment and mutual finance companies will be able to join open banking in December this year and credit card companies by the first half of 2021. Moreover, the government will work to allow more account types to be eligible to sign up for open banking and to connect open banking with other digital finance infrastructures such as MyData and MyPayment to promote the development of a one-stop platform offering analysis, advise and account transfer services all from the same place.II. PROMOTE RECIPROCITYIn order to promote reciprocity between incumbents and new entrants, the government will promote a more balance
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Oct 20, 2020

Vice Chairman Stresses Importance of Steady Financial Support for Small Businesses

Vice Chairman Sohn Byungdoo held the 26th financial risk assessment meeting via teleconference on October 20 to discuss the implementation status of the COVID-19 emergency financial support programs.The following is a summary of Vice Chairman Sohn’s remarks.(CURRENT ECONOMIC CONDITIONS) As some of the key economic indicators have shown signs of an improvement recently, the IMF revised up its global growth forecast from a 5.2 percent drop to 4.4 percent decline. The Korean economy also has been on a recovery path, as exports rebounded in September for the first time since the outbreak of the COVID-19. The recently adjusted social distancing rules and the government’s fiscal efforts are expected to help boost domestic demand. With a resurgence of COVID-19 being the biggest threat to economic recovery, financial institutions should closely adhere to the safety and preventive measures.(STEADY SUPPORT FOR SMALL MERCHANTS) The structural changes caused by the COVID-19 pandemic present both challenges and opportunities. Although there are positive effects, such as a transition toward a digital and green economy, heavier burdens may be placed on the vulnerable groups including small merchants as some expect to see a K-shaped recovery. Since the improvements to the second round of financial support program for small merchants became available on September 23, the provision of lending support to small merchants has continued to increase. As this program is backed by guarantees from the Korea Credit Guarantee Fund, it is essential that lending support is made available to small merchants with different credit backgrounds, including those with unfavorable credit history.With growing numbers of small merchants experiencing business closures, it is necessary to keep in place a policy that supports their comeback. Since last November, the FSC has made available a one-stop consulting program for self-employed small business owners who have experienced business closures due to t
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Oct 19, 2020

FSC Introduces Improvements to Credit Recovery Support Programs

The FSC announced ways to improve the credit recovery support system on October 16. The improved measures are expected to go into effect in November this year.The FSC has been working to improve the personal debt adjustment program run by the Credit Counseling Recovery Service (CCRS) to help reduce excessive personal debt service burdens and support quick recovery. In this year, the government introduced loan deferment programs in March and April to help relieve debt burdens of vulnerable individuals hit by the COVID-19. In order to improve the credit recovery support system, the FSC prepared the following measures.a. CCRS’s up to one-year loan deferment program currently offered to those who have seen their income drop due to COVID-19 will be extended to include those who have been laid off and/or experienced business closure.b. The age limit for CCRS’s special debt adjustment program for the unemployed youth with overdue debts of three months or more will be increased from below 30 years old currently to 34 years old and below, while extending the deferment period from maximum four years to five years.c. Improvements will be introduced that will restrict creditor institutions from denying loan deferment on non-overdue loans or activate a trigger clause for events of default just because a debtor applies for a debt adjustment.d. Improvements will be made to allow creditor institutions to cancel account seizures upon debtors’ request when entering into a debt adjustment program.e. Special exemptions for vulnerable debtors will be applied to all basic income recipients and those with severe disabilities.f. The current six-month term restriction placed before a debtor can reapply for an individual workout will be shorten to three months to help with quick recovery.g. For the portion of the principal that has been repaid, the remission rate on interest will be increased from 80 percent to 90 percent to help reduce debt servicing burden of vulnerable debtors.h. Su
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Oct 19, 2020

FSC Holds Kick-off Meeting to Root Out Unlawful Trading Activities in Stock Markets

Vice Chairman Sohn Byungdoo held a kick-off meeting of the task force on the prevention of unlawful and unfair trading activities in stock markets on October 19. The task force will operate until the end of March 2021 and regularly report its implementation status on a monthly basis.The following is a summary of Vice Chairman Sohn’s remarks.BACKGROUNDDue to the rapid spread of COVID-19 around the world, domestic stock markets plunged at the beginning of the year. However, stock prices quickly recovered to the pre-pandemic level backed by the strong fundamentals of the Korean economy, prompt implementation of the emergency financial support programs and the effective K-quarantine measures. Moreover, an upsurge in the trading volume by retail investors also contributed to the quick market recovery. The retail investors’ growing interest in stock investment is a positive sign. However, without a fair market order, investors’ trust in the market may crumble and the recent investment boom may end up as a short-lived one, preventing a further advancement of stock markets.With abundant market liquidities flowing into stock markets, it has become all the more necessary to pay attention to the growing concerns about illegal and/or unfair trading activities in the stock markets.POTENTIAL ISSUESThe recent trends in stock market activities reveal the following three potential problems. First, due to the rising market volatility, there are growing risks of unfair trading activities surrounding particular groups of stock items, such as COVID-19 and “untact” sectors. In addition, as the period of short-selling ban was extended until March 15, 2021, it has become necessary to closely monitor illegal short sale activities during this period, including naked short-selling. Second, unfair trading activities including price manipulation are being carried out in a more organized and complex manner. However, the current system from the detection to punishment stage takes a long
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Oct 15, 2020

Mobile Microloan Application to be Available for Young Adults

The FSC announced the availability of mobile microloan application system for young adults starting from October 30. Both first-time and returning applicants will be able to use the mobile application system and submit applications online via a mobile app from the Korea Inclusive Finance Agency.The “sunshine loan for youth” program was launched in January this year to provide financing support to young adults who face difficulties in accessing traditional lending institutions. Since January, it has provided KRW135.2 billion in microloans to some 38,000 young adults.With the third supplementary budget, the fiscal resources allocated for the program has been expanded from KRW100 billion to KRW200 billion. In addition, special guarantees became available for the program from August 18, which raised the maximum lending cap per application from KRW3 million to KRW5 million.The “sunshine loan for youth” program with special guarantees will continue to be offered until the end of this year with the mobile application service being available from October 30.* Please refer to the attached PDF for details.
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