The Financial Services Commission held the 13th regular meeting on July 15 and designated eight non-holding financial groups for 2026 pursuant to the Act on the Supervision of Financial Conglomerates (“the Act” hereinafter). The designated entities are Samsung, Hanwha, Mirae Asset, Kyobo, Hyundai Motor, DB, Daou Kiwoom, and Toss groups.
Toss is newly added to the list of non-holding financial groups this year as the first among big tech companies.
The designation and supervisory mechanism on non-holding financial groups aims to effectively oversee and manage risk contagion or concentration in financial groups. With the implementation of the Act from June 2021, the FSC has been designating non-holding financial groups every year. The eight selected entities for this year satisfied all designation criteria under the Act.
The selected entities 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, and so on, 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 the authorities.
c) Draw up capital adequacy ratio reflecting risk-weighted capital based on the risk assessment conducted by the financial authorities.
d) The financial authorities will carry out a periodic assessment (every three years) on the risk and risk management status of non-holding financial groups.
It is expected that the designation of non-holding financial groups for this year will help these companies to more effectively monitor and manage group-wide risks on their own and help strengthen supervision over big tech financial groups.
* Please refer to the attached PDF for details.