The Financial Services Commission held the 13th regular meeting on July 5 and designated seven non-holding financial groups for 2023 pursuant to the Act on the Supervision of Financial Conglomerates. The designated entities are Samsung, Hanwha, Kyobo, Mirae Asset, Hyundai Motor, DB and Daou Kiwoom groups.
This is the third time the FSC is designating non-holding financial groups (financial conglomerates) since the Act on the Supervision of Financial Conglomerates became effective in June 2021. The seven entities satisfied all designation criteria.
The seven non-holding financial groups will be subject to the following rules.
a) Select a financial business entity representing the entire group after considering the investment relationship, total size of asset, capital, etc. and report their selection to the Financial Supervisory Service.
b) Periodically inspect and evaluate group-wide risks and prepare and follow their own internal control and risk management policy, and transparently disclose material information needed to ensure consumer protection and report to authorities.
c) Draw up capital adequacy ratio reflecting risk-weighted capital based on the risk assessment conducted by financial authorities.
d) Financial authorities will carry out a periodic assessment (every three years) on the risk and risk management status of non-holding financial groups.
Authorities expect that the designation will help the non-holding financial groups to more effectively monitor and manage their group-wide risks on their own.
* Please refer to the attached file for details.