-
Sep 04, 2025
- FSC Plans to Issue New License for Fractional Investment Trading Platform Services
- The Financial Services Commission announced plans to issue new license for fractional investment trading platform services on September 4. The government has been working to establish a new licensing unit to authorize the operation of over-the-counter (OTC) trading services (distribution platforms) regarding fractional investment securities, which offer a fraction of ownership right for various underlying assets (e.g. real estate, music copyright, etc.) to multiple investors. Thus far, fractional investment trading service has been operating under the regulatory exemption program (financial regulatory sandbox). However, as the revision of the Financial Investment Services and Capital Markets Act (FSCMA) and its subordinate regulations is expected to be completed by the end of September, this will establish a legislative foundation authorizing the operation of fractional investment trading platform services. This follows the earlier capital market rule change in June authorizing the issuance (primary market) of fractional investment securities. By the end of September, necessary rule changes will have been completed for authorizing the distribution (secondary market) of fractional investment securities. As such, the issuer of fractional investment securities (e.g. a fintech business with necessary securities and investment licenses) will seek to securitize various types of underlying assets to solicit investors, and factional investment securities will be listed on trading platforms for transactions between multiple buyers and sellers. Plans for Granting New License New license will be granted to maximum two applicants Considering that the fractional investment market is still at an early stage and given the need to ensure market efficiency and investor protection through concentration of liquidity, the number of licenses granted this time will be maximum two. If the number of qualified entities is less than two, the final number of entities granted with the new lice
-
Aug 28, 2025
- FSC Introduces Measures to Strengthen Anti-vishing Capabilities in Financial Sector
- The Financial Services Commission introduced a set of measures intended to strengthen anti-vishing capabilities in the financial sector on August 28. The measures are part of the governments comprehensive plan to root out vishing scams announced earlier on the same day. Key Measures I. Introduce Liability of Compensation and Strengthen Response Capabilities The government plans to introduce liability of compensation in legislation for the loss incurred in part or in whole resulting from a vishing scam for those entities that bear the responsibility of preventing vishing scams, such as financial companies. With the advent of AI technologies in crimes and the use of stolen personal data in highly manipulative and psychologically domineering ways, the methods used by vishing perpetrators these days show that they are advancing evermore rapidly. In this regard, practice of caution by individuals alone cannot effectively prevent damages, and that it is now time to more systematically and proactively respond to vishing scams through strengthening the responsibility of financial companies that are equipped with the needed expertise and infrastructure, such as fraud detection system (FDS). Earlier in January 2024, financial companies had adopted standards for providing compensation for loss incurred in online or mobile financial frauds on a voluntary basis. However, compensations were provided only under specific conditions (e.g. use of fraudulent passwords) on a restricted basis, which had limited impact on the overall improvement of anti-vishing efforts across the financial industry. Thus, once the liability of compensation clause is put into legislation, victims of vishing scams will be able to receive at least a certain level of compensation from financial companies even if the transfer of money which led to financial loss was carried out by the victim him/herself under duplicitous circumstances. Making financial companies liable to compensation will also provide them w
-
Aug 25, 2025
- Financial Authorities of Korea and Vietnam Meet to Discuss Strengthening Cooperation on Capital Markets
- Vice Chairman Kwon Dae-young of the Financial Services Commission met with Vietnams Deputy Minister of Finance Nguyen Duc Chi at his office in Seoul Government Complex on August 25 as a follow-up to the bilateral summit meeting held between Korea and Vietnam on August 11, 2025. The meeting was also joined by Standing Commissioner Rhee Yunsu of the SFC (Securities and Futures Commission), a sub-commission within the FSC, Chairwoman Vu Thi Chan Phuong of Vietnams SSC (State Securities Commission), and the heads of VNX (Vietnam Exchange), HOSE (Ho Chi Minh City Stock Exchange), HNX (Hanoi Stock Exchange), and VSDC (Vietnam Securities Depository and Clearing Corporation). At the meeting, the authorities discussed ways to strengthen bilateral cooperation on capital markets. Vietnams Deputy Finance Minister Chi expressed appreciation while saying that KRX (Korea Exchange)s trading system, which was first introduced to Vietnam nine years ago but just became operational from May 5 this year, has been running stably. Based on this, the Deputy Finance Minister expressed the willingness to bolster policy support to leap forward as a highly dependable emerging market through stability in trading system and global competitiveness. In addition, SSC Chairwoman Phuong suggested the two countries to continue to work toward deepening cooperation in the areas of capital market supervision based on the upgraded trading system and virtual asset regulatory framework through sharing of policy experience and know-hows. FSC Vice Chairman Kwon congratulated Vietnams successful operation of upgraded trading infrastructure and its stock markets 25-year anniversary on July 28. Prior to that, in May this year, Vice Chairman Kwon said that the State Bank of Vietnam (SBV) issued confirmation letters permitting the Industrial Bank of Korea (IBK) and Korea Development Bank (KDB) to set up local operations in Vietnam after about six to eight years of wait. In this regard, Vice Chairman Kwon said that
-
Aug 13, 2025
- Household Loans, July 2025
- In July 2025, the outstanding balance of household loans across all financial sectors increased KRW2.2 trillion (preliminary), rising at a significantly slower pace compared with the previous month (up KRW6.5 trillion), with the volume of growth falling to the lowest level since March this year. (By Type) Home-backed mortgage loans increased KRW4.1 trillion, growing at a slower pace compared with the previous month (up KRW6.1 trillion). Banks (up KRW5.1 trillion up KRW3.4 trillion) and nonbanks (up KRW1.1 trillion up KRW0.7 trillion) both saw the pace of growth decelerating. Other types of loans decreased KRW1.9 trillion, edging back lower from the growth of KRW0.3 trillion in the previous month as credit loans, which has shown an upward movement recently, turned back lower (up KRW0.7 trillion down KRW1.1 trillion). (By Sector) In July, household loans in the banking sector rose KRW2.8 trillion, which has fallen significantly from the growth of KRW6.2 trillion a month ago. Banks own mortgage loan products (up KRW3.8 trillion up KRW2.2 trillion) and policy-based loans (up KRW1.3 trillion up KRW1.2 trillion) both expanded at slower paces. Other types of loans (up KRW1.1 trillion down KRW0.6 trillion) in the banking sector turned back lower from the growth a month ago. In the nonbanking sector, household loans went down KRW0.6 trillion, shifting back down from the growth of KRW0.3 trillion in the previous month. Mutual finance businesses (up KRW1.2 trillion up KRW0.3 trillion) saw the pace of growth slowing, while savings banks (down KRW0.04 trillion down KRW0.3 trillion) and insurance companies (down KRW0.3 trillion down KRW0.4 trillion) saw the pace of decline expanding. Specialized credit finance businesses (down KRW0.6 trillion down KRW0.2 trillion) saw the pace of decline decelerating from the previous month. (Assessment) Household loans in July this year grew at a notably slower pace both on-month and on-year basis due to the effects of the strengthened household
-
Aug 11, 2025
- Credit Recovery Support Available for Delinquent Debtors Who Make Diligent Efforts to Fully Pay Off Overdue Debt
- The Financial Services Commission announced a plan to make available credit recovery support in the form of expungement of overdue debt history for delinquent debtors on August 11. Individuals and individual business owners who have accrued overdue debts of up to KRW50 million (between January 2020 and August 2025) but have or will have fully paid off their overdue debts by the end of December 2025 will be eligible to receive this credit recovery support. For these individuals making diligent efforts to fully pay off their overdue debts, starting from September 30, 2025 (tentative schedule), financial companies and credit information services will suspend the practice of sharing and making use of past delinquent debt history to facilitate their prompt recovery and return to normal economic activities. Among some 3.24 million individuals and individual business owners who have accrued overdue debts worth KRW50 million or less between January 1, 2020 and June 30, 2025, as of now, there are about 2.72 million individuals who have already completed making overdue payments in full and are eligible to receive credit recovery support. The rest or the other 520,000 individuals and individual business owners can also gain eligibility if they successfully pay off overdue debts in full by December 31, 2025. With the credit recovery support in place, those making diligent efforts to pay off overdue debts in full will see a boost to their credit scores, no longer having to face disadvantages in terms of interest rate, maximum loan amount, and access to new loan. * Please refer to the attached PDF for details.
-
Jul 30, 2025
- FSC-FSS-KRX Launch Joint Response Team to Root Out Stock Market Manipulation
- The Financial Services Commission, the Financial Supervisory Service, and the Korea Exchange launched a joint response team on stock market manipulation and held the newly created teams signboard unveiling ceremony on July 30. The joint response team is a collaborative operation of the three organizations set up at the KRX, and it aims to bolster the initial response function of KRXs market surveillance committee. Prior to the signboard unveiling event, Chairman Kwon Dae-young of the Securities and Futures Commission (SFC) held talks with the staff of the newly created team and reaffirmed the importance of stamping out unfair trading activities in capital markets. A Summary of Opening Remarks by SFC Chairman Putting an end to stock market manipulation can be seen as a start of building confidence in the market. Stock manipulation should be caught at any cost, and when detected, the violator should be subject to economic sanctions surpassing the level of unfairly gained profits, and the manipulator should not be able to engage in securities transactions or serve as an executive of a listed company. Simply put, the violator should be effectively barred from capital markets. With the establishment of a joint response team, the physical, informational, and jurisdictional separation and division previously existing between the three organizations have been effectively removed. The planned introduction of AI technology and upgrading KRXs market surveillance system to make surveillance more individual-focused rather than account-based will also help the operation of the joint response team. The financial authorities will also seek to enhance cooperation with investigative authorities to make sure that follow-up criminal investigations take place more swiftly and effectively. With regard to the recent cases involving employees of financial companies, authorities will make sure to bring severe punishment against them. At the same time, financial companies should strengthen s
-
Jul 28, 2025
- Authorities Propose Plans to Set Up Anti-vishing Platform Using Artificial Intelligence Analytics
- The Financial Services Commission held a meeting with related authorities, private sector experts, and financial industry associations on July 28 and introduced measures to step up anti-vishing response efforts and set up a comprehensive anti-vishing platform using artificial intelligence (AI) analytics. Anti-vishing AI Platform Currently, individual financial companies are able to take appropriate anti-vishing measures on suspicious account activities based on the operation of their own fraud detection systems (FDS). However, the current response system faces hurdles in its capacity in that individual financial companies have experience with only limited numbers of prior vishing cases and carry out surveillance only based on their own analysis of scam patterns. Moreover, even when they detect an account used for vishing scam, there is no instant information sharing between financial companies, so that they lack sufficient information about the newly emerging types and patterns in vishing scams individually. This has also created significant divergence between financial companies in their anti-vishing response capacities and has not helped to speed up the process of suspending problematic accounts used in criminal activities. In this regard, the anti-vishing AI platform is a digital data infrastructure that will help the authorities to tackle these limitations in the current anti-vishing response system. The platform will gather information and data on suspicious accounts from across all financial sectors, telecom service providers, and investigative authorities and will operate two different types of information categoriesthose required for immediate sharing and those analyzed by AI. The types of information categorized as requiring immediate sharing will be instantly disseminated and shared with financial companies and related organizations to facilitate immediate suspension of account activities. This will help to quickly freeze multiple financial accounts used i
-
Jul 23, 2025
-
Jul 23, 2025
- FSC Identifies D-SIBs and D-SIFIs for 2026
- The Financial Services Commission identified five bank holding companies (BHCs) and five banks as domestic systemically important banks (D-SIBs) and domestic systemically important financial institutions (D-SIFIs) for 2026 at the 14th regular meeting held on July 23. Those selected for 2026 are same as the previous years list of selectionShinhan Financial Group, KB Financial Group, Hana Financial Group, Woori Financial Group, NH Financial Group, Shinhan Bank, Woori Bank, KB Kookmin Bank, KEB Hana Bank, and NH Bank. Those identified as D-SIBs are required to set aside an additional common equity capital of 1.0 percent. The FSC identifies D-SIBs every year in accordance with assessment criteria recommended by the Basel Committee on Banking Supervision (BCBS). Meanwhile, the FSC also identifies D-SIBs as domestic systemically important financial institutions (D-SIFIs) under the amended Act on the Structural Improvement of the Financial Industry. D-SIFIs are required to prepare and submit their own recovery plans to the Financial Supervisory Service (FSS) within three months from the day of being designated as a D-SIFI. Since the D-SIBs selected for 2026 are the same as the previous year, there will be no actual increase in capital ratio required from them. * Please refer to the attached PDF for details.
-
Jul 23, 2025
- Capital Market Rule Changes Proposed to Strengthen Response against Unfair Trading Activities
- The Financial Services Commission issued a preliminary notice of regulatory changes on July 23 regarding the Enforcement Decree of the Financial Investment Services and Capital Markets Act (FSCMA) and subordinate rules to strengthen early response and bring more stern measures against unfair trading activities. Key Revision Details I. Establish a regulatory ground to upgrade KRXs surveillance system to make it more individually-focused (from account-based system currently) Under the current system, the KRX performs surveillance based on accountsand not based on individualsas it is not authorized to make use of investors personal information. As such, surveillance targets remain too broad and it is difficult to identify activities connected to the same entity. Thus, the revision proposal 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. II. Strengthen the criteria for imposing penalty surcharges and introduce aggravated sanctions criteria a) Penalty surcharge for unfair trading activities Under the current penalty surcharge standards, unfair trading activities can be subject to penalty surcharges amounting to either 50 percent to 200 percent of the amount of unfairly gained profits (for use of undisclosed material information, price manipulation, or unfair transaction) or 50 per
-
Jul 22, 2025
- Maximum Deposit Protection Coverage of KRW100 Million Scheduled to Take Effect from September 1
- The Financial Services Commission announced that the government approved a set of legislative revision bills raising the maximum deposit protection coverage to KRW100 million from KRW50 million previously at the cabinet meeting held on July 22. The increased deposit protection coverage will take effect from September 1, 2025. Since the Depositor Protection Act was revised on January 21 this year raising the minimum deposit protection level to KRW100 million, the FSC and related ministrieshad worked on amendments to six Enforcement Decrees, which were approved at the cabinet meeting today. Therefore, starting from September 1 this year, the maximum deposit protection coverage in the case of a financial company turning insolvent will be raised to KRW100 million for banks, savings banks, insurance companies, and financial investment businesses that are covered by the Korea Deposit Insurance Corporation (KDIC) under the Depositor Protection Act. Moreover, mutual finance businessescredit unions, agricultural cooperatives, fisheries cooperatives, forestry cooperatives, and community credit cooperativesthat are covered by their own federation funds will also be subject to the increased deposit protection limit of KRW100 million. Principal-protected savings and installment savings products will be covered up to KRW100 million regardless of when the account was opened. However, investment products such as funds that are linked to the performance of fund management will not be covered. In addition, retirement pension plans, pension savings, and accident insurance payments that are handled separately within the same financial company will also be subject to the increased deposit protection coverage. Since the increase in deposit protection coverage will take effect for the first time in 24 years since 2001, it is expected that depositors will be entitled to enhanced protection of their savings and there will increased credibility over financial market stability. Moreover, cons
-
Jul 09, 2025
-
Jul 09, 2025
- FSC Announces Designation of Seven Non-holding Financial Groups for 2025
- The Financial Services Commission held the 13th regular meeting on July 9 and designated seven non-holding financial groups for 2025 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 and Daou Kiwoom groups. The designation and supervisory system 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 seven selected entities 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 will help these companies to more effectively monitor and manage group-wide risks on their own. * Please refer to the attached PDF for details.
-
Jul 09, 2025
- Household Loans, June 2025
- In June 2025, the outstanding balance of household loans across all financial sectors increased KRW6.5 trillion (preliminary), rising at a faster pace compared with the previous month (up KRW5.9 trillion). (By Type) Home-backed mortgage loans rose KRW6.2 trillion, growing at a faster pace compared with the previous month (up KRW5.6 trillion). Banks saw an expanded pace of growth in mortgage loans (up KRW4.1 trillion up KRW5.1 trillion), while nonbanks saw a somewhat slower pace of growth from the previous month (up KRW1.5 trillion up KRW1.1 trillion). Other types of loans went up KRW0.3 trillion, growing at a slightly slower pace compared with the previous month (up KRW0.4 trillion), with credit loans rising at a slower pace (up KRW0.8 trillion up KRW0.7 trillion). (By Sector) In June, household loans in the banking sector rose at a faster pace compared with the previous month (up KRW5.2 trillion up KRW6.2 trillion). Banks own mortgage loan products grew at an expanded pace (up KRW2.5 trillion up KRW3.8 trillion), while policy-based loans grew at a slightly slower pace (up KRW1.6 trillion up KRW1.3 trillion). Other types of loans in the banking sector rose at a similar pace compared with a month ago (up KRW1.1 trillion up KRW1.1 trillion). In the nonbanking sector, household loans increased KRW0.3 trillion, rising at a slower pace compared with the previous month (up KRW0.7 trillion). Mutual finance businesses (up KRW0.8 trillion up KRW1.1 trillion) saw an expanded pace of growth, while savings banks (up KRW0.3 trillion down KRW0.04 trillion) saw the growth trend shifting back down. Insurance companies (down KRW0.3 trillion down KRW0.2 trillion) saw a somewhat slower pace of decline, while specialized credit finance businesses (down KRW0.1 trillion down KRW0.6 trillion) saw a faster pace of decline compared with the previous month. (Assessment) The expanded pace of household loan growth in June can be seen as a consequence of increased housing transactions from Febr
-
Jul 09, 2025
- Authorities Lay Out Plans to Stamp Out Unfair Trading Activities in Stock Markets
- The Financial Services Commission, the Financial Supervisory Service, and the Korea Exchange introduced joint measures to stamp out unfair trading activities in stock markets on July 9. The financial authorities have held a series of meetings and discussions in the past month to seek ways to strengthen initial response and ensure strict punishment on unfair trading activities (price manipulation, etc.). The following measures have been prepared based on these discussions. Key Measures I. Establish a Joint Response Team to Root Out Stock Price Manipulation Under the current response system for unfair trading activities, the examination (KRX) and investigation (FSC FSS) functions are dispersed across different organizations, and they each have different levels of authority, for instance, to check financial (securities or bank) accounts or force investigation. This led to the problem of delay in responding to cases which required urgent actions from the authorities. Thus, in order to boost the efficiency in examination and investigation, the FSC, the FSS, and the KRX plan to establish a joint response team to root out stock price manipulation. The joint response team, a collaborative operation among the FSC, the FSS, and the KRX, will be set up at the KRX with an aim to bolster the initial response function of KRXs market surveillance committee. The joint response team will work under the same workspace and perform investigations on important cases that require urgent response together from the early stage. In the process, each organization (FSC, FSS, and KRX) will make utmost use of its investigative authority to promptly carry out investigations on cases associated with (a) frequent rule-breakers, (b) largest shareholder or company executives, (c) use of false information on social media, etc. II. Upgrade KRXs Surveillance System to Make It More Individually-focused (from account-based system currently) and Adopt AI Technology in Market Surveillance Under the current
-
Jun 27, 2025
- Authorities Introduce Measures to Strengthen Household Debt Management Centered on Seoul Metropolitan Area
- The Financial Services Commission held a meeting on household debt on June 27 with officials from related government ministries, industry groups, and housing loan and guarantee institutions. At the meeting, officials discussed the expanding trend of household debt triggered by mortgage loans in the Seoul metropolitan area and announced a set of measures that will help to strengthen the management of household debt especially in the Seoul metropolitan area. Household Loans In recent months, the outstanding balance of household loans has been growing since April due to the rising volume of housing transactions in the wake of temporary lifting of the land transaction permit scheme in Seoul and expectation for rate cut, and this trend has continued into June. With the rise in the volume of housing transactions in the Seoul metropolitan area,mortgage loans in this region has grown rapidly in particular. Key Measures I. Bolstering Total Management Target Considering the economys nominal GDP growth forecast and the recent trend of household debt growth, the annual target volume of household loanswhich include both financial companies own loan products and government-sponsored policy loanswill be revised down from the current level. For financial companies own loan products across all financial sectors, the total annual target volume will be reduced to 50 percent of the previous level effective from the second half of this year. For policy loans, the annual supply plan will be 25 percent less than the previously set level. II. Applying Banks Self-regulatory Measures in All Other Financial Sectors The implementation of self-regulatory household debt management measures taken up by banks on a voluntary basis will be expanded to all other financial sectors. First, in the Seoul metropolitan area and/or speculation regulated zones,current homeowners (multiple-house owners or single-house owners without the intention to sell currently owned house) will not be allowed to purchase
-
Jun 16, 2025
-
Jun 11, 2025
- Household Loans, May 2025
- In May 2025, the outstanding balance of household loans across all financial sectors rose KRW6.0 trillion (preliminary), growing at a faster pace compared with the previous month (up KRW5.3 trillion). (By Type) Home-backed mortgage loans increased KRW5.6 trillion, rising at a faster pace compared with a month ago (up KRW4.8 trillion). The faster pace of growth was seen in both the banking (up KRW3.7 trillion up KRW4.2 trillion) and nonbanking (up KRW1.1 trillion up KRW1.5 trillion) sectors. Other types of loans increased KRW0.4 trillion, rising at a slightly slower pace compared with the previous month (up KRW0.5 trillion), as credit loans expanded at a slower rate (up KRW1.2 trillion up KRW0.8 trillion). (By Sector) In May, household loans in the banking sector rose at a faster pace compared with the previous month (up KRW4.7 trillion up KRW5.2 trillion). Banks own mortgage loans grew at an expanded level (up KRW1.9 trillion up KRW2.5 trillion), while policy-based loans grew at a slightly slower pace (up KRW1.8 trillion up KRW1.6 trillion). Other types of loans in the banking sector rose at a similar pace compared with a month ago (up KRW1.0 trillion up KRW1.0 trillion). In the nonbanking sector, household loans edged up KRW0.8 trillion, rising at a faster pace compared with the previous month (up KRW0.5 trillion). Mutual finance businesses (up KRW0.3 trillion up KRW0.8 trillion) saw a faster pace of growth, while savings banks (up KRW0.4 trillion up KRW0.3 trillion) saw a slower pace of growth. Insurance companies (up KRW0.01 trillion down KRW0.3 trillion) saw household loan growth shifting back lower, while specialized credit finance businesses (down KRW0.1 trillion down KRW0.1 trillion) maintained the same level of decline compared with a month ago. (Assessment) The expanded pace of household loan growth in May can be seen as a consequence of the increase in housing transactions from February this year. As the volume of housing transactions continues to rise, it
-
May 20, 2025
- KoFIU Unveils H2 2024 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) July 1, 2024 to December 31, 2024 Key Survey Findings for H2 2024 The price increase in virtual assets and expansion of market size observed from the second half of 2023 in the domestic virtual asset market accelerated in the second half of 2024. Compared with the first half of the same year, average daily trading volume (up KRW1.3 trillion or 22%), total operating profits (up KRW160.2 billion or 28%), and the number of users eligible to trade (up 1.92 million or 25%) all went up. In particular, market capitalization (up KRW51.2 trillion or 91%) and total amount of deposits (up KRW5.7 trillion or 114%) rose significantly. However, during the same period, the coin-only exchange market experienced declines in average daily trading volume (down KRW 660 million or 81%), market capitalization (down KRW 27.6 billion or 19%), and total operating profits (down KRW 1.1 billion or 8%) due to significant concentration in the KRW-based exchange service providers and termination of business operation of certain coin-only exchange service providers. External transfers of virtual assets to the registered entities under the travel rule grew somewhat (up 4%), while those transferred to the whitelisted overseas entities and personal digital wallets saw a notable increase (up 38%). The total size of virtual assets in custody, wallet, and staking services (down KRW 12.3 trillion or 89%) and their number of users (down 196,000 or 99%) both declined significantly as more service providers terminated business operation and the base price of certain custody service providers went down. * Please re
-
May 20, 2025
- FSC Announces Plan to Implement Third-stage Stressed DSR Rule as Scheduled from July 1
- The Financial Services Commission held a meeting on household debt with officials from related government ministries, industry groups, and five major banks on May 20. At the meeting, officials reviewed recent household debt situation and risk factors and discussed detailed measures for implementing the third-stage stressed debt service ratio (DSR) rule as scheduled from July 1, 2025. Moreover, the financial authorities, officials from related ministries, and financial industry groups vowed to more closely communicate and cooperate to ensure stable management of household debt. Household Loans In 2025, the trend of household loan growth remained stabled in the first quarter. However, in April, the outstanding balance of household loans across all financial sectors increased KRW5.3 trillion from the previous month (up KRW0.7 trillion), growing at a notably faster pace. In April, home mortgage loans grew at a faster pace (up KRW3.7 trillion up KRW4.8 trillion), and other types of loans including credit loans shifted back up from the decline seen a month ago (down KRW3.0 trillion up KRW0.5 trillion). This pattern of growth appears to be continuing in May. At the meeting, officials assessed that the overall growth of household loans in April was mainly due to the recent rise in housing transactions pushing up mortgage loans and the low base effect from the previous month where sales or cancellation of nonperforming debt took place at the end of the first quarter. Considering the expectation of interest rate cuts in the future and the effects of the scheduled increase in deposit insurance coverage from September 1 this year on nonbank financial institutions, officials emphasized the need to ensure a preemptive management over household debt. Implementation of Third-stage Stressed DSR Rule After coordinating with related authorities, the FSC decided to implement the third-stage stressed DSR rule* as scheduled from July 1, 2025. * The stressed DSR rule imposes a certain lev
