Press Releases - Financial Services Commission

Press Releases

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Jan 28, 2026

Revised Rules to Expand English Disclosure Requirement and Enhance Transparency in Corporate Disclosures

The Financial Services Commission approved revised rules on corporate disclosures at the regular meeting held on January 28. The rule changes are aimed at expanding the scope of listed companies being subject to the mandatory English disclosure requirement and making corporate disclosure practices more transparent regarding annual general meetings of shareholders (AGMs) and executive compensations. Key Revision Details a) Expanding mandatory English disclosure requirement (from May 2026) The FSC and the Korea Exchange (KRX) have been working on expanding the application of mandatory English disclosure requirement on listed companies in stages. In this regard, the mandatory English disclosure requirement entered into the first stage in January 2024 for listed companies with assets worth KRW10 trillion or more (and foreign ownership of 5 percent or more) or those with assets worth KRW2 trillion or more (and foreign ownership of 30 percent or more). Under the revised rules, the mandatory English disclosure requirement will be expanded to all KOSPI-listed companies with assets worth KRW2 trillion or more from May 2026. This will significantly increase the number of listed companies being subject to the mandatory English disclosure requirement from the current level of 111 companies (based on their total assets as of end-2024) to 265 companies. 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 after filing their original Korean disclosures will also be reduced. Large KOSPI-listed companies with assets worth KRW10 trillion or more will need to submit English disclosures on the same day of filing their Korean disclosures with the KRX in principle. Listed companies with assets worth KRW2 trillion or more that are newly becoming sub
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Dec 19, 2025

FSC Plans a Sweeping Overhaul of Finance to Propel a Great Takeoff of the Korean Economy

The Financial Services Commission presented its work progress and policy agendas going forward in a government work report session jointly held with the Korea Fair Trade Commission on December 19 under the theme of pursuing a sweeping overhaul of finance, fostering a fair economy, and building robust foundations to propel a great takeoff of the economy. At the work report session, Chairman Lee Eog-weon of the Financial Services Commission presented progress and achievements in 2025 and key policy agendas going forward focusing on the vision to seek a sweeping overhaul of finance to make the financial industry more productive, more inclusive, and more reliable. With the pursuit of major transformation in the financial industry, Chairman Lee pledged to help propel a great takeoff of the Korean economy. Achievements in 2025 In the past six months, the FSC has worked relentlessly to help resolve the difficulties in peoples livelihoods and to build a new framework for financial policies. First, in order to quickly facilitate a recovery in peoples livelihoods, which had faced challenges from the COVID-19 pandemic and high interest rates, the FSC took bold steps in providing strong support measures. The establishment of New Leap Fund (Oct. 1) allowed the acquisition, screening, and cancellation of long-term overdue personal debts for 1.13 million individuals without even having these debtors needing to apply for this support. With the provision of credit recovery support in the form of expungement of overdue debt history (Sep. 30), 2.862 million individuals (as of end-Nov.) were able to make a recovery and regain footing financially. The FSC also held meetings with small merchants in twelve different occasions to more closely listen to their needs on the ground and introduced a special financing support plan in the size of KRW10 trillion-plus. Next, the FSC sought to actively manage household debt and contain tariff-related risks in the market, while making all-out efforts
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Dec 15, 2025

FSC Holds Market Monitoring Meeting and Decides on Continuous Operation of Market Stabilization Programs

Chairman Lee Eog-weon of the Financial Services Commission presided over a meeting with relevant authorities, research institutions, and market experts on December 15 to review financial market conditions and risk factors going forward. A Summary of FSC Chairmans Remarks In the first half of this year, there were growing anxieties over financial markets due to the Trump administrations tariff policy and uncertainties regarding domestic politics. However, in the second half of the year, the Korean economy and market conditions recovered backed by rigorous policy efforts of the new government and improvement in corporate earnings in the semiconductor sector. Despite this overall sense of stability, there is growing vigilance over domestic financial markets with government bond yields showing an upward movement and the foreign exchange market showing an expanded level of volatility recently. Nonetheless, the Korean economy is sufficiently equipped with the resilience and the policy capacity to respond to crisis situations backed by strong fundamentals. First, domestic financial institutions have been maintaining an adequate level of soundness. Second, Koreas foreign exchange reserve is the ninth largest in the world. Third, credit default swap (CDS) premium in Korea has been brought down significantly from the beginning of this year. In addition, some of the potential risk factors and structural problems for the economy, such as household debt, real estate project finance, and the soundness of nonbank financial institutions, are also being adequately addressed and stably managed through ongoing policy measures. However, since it is possible to see growing market volatility in the future, the FSC will continue to closely work with related authorities to carefully monitor market conditions and take bold and proactive steps to employ market stabilization measures when it becomes necessary. Next year, the FSC will strive to push for major transformation in the financial in
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Dec 08, 2025

9th Regular Korea-Japan Financial Shuttle Meeting and 10th IFCF Held in Busan

The Financial Services Commission and the Financial Supervisory Service held the 9th annual shuttle meeting of financial authorities with the Financial Services Agency (FSA) of Japan in Busan on December 8. Joint Press Release of the Ninth Regular Korea-Japan Financial Shuttle Meeting (Busan, Korea, December 8, 2025) 1. In celebration of the 60th anniversary of the normalization of diplomatic relations between Korea and Japan, the Ninth Regular Korea-Japan Financial Shuttle Meeting was jointly held by the Korea Financial Services Commission (FSC), the Korea Financial Supervisory Service (FSS), and the Japan Financial Services Agency (FSA) in Busan, Korea, on December 8th. The event proceeded as follows: (i) A meeting between FSC Chairman LEE Eog-weon and FSA Commissioner ITO Yutaka; (ii) Congratulatory remarks and a Japan-Korea joint session at the International Financial Cooperation Forum (IFCF); and (iii) A meeting between FSS Governor LEE Chanjin and FSA Commissioner ITO. 2. The heads of the three authorities exchanged their views on the implications of the recent global macroeconomic and financial developments for the financial sectors of both countries. They confirmed with each other the overall direction of key policy agenda items and high-priority policy tasks that would deserve further cooperation among the three authorities. 3. Chairman LEE emphasized the importance of enhancing dialogue between FSC/FSS and FSA high-level officials to facilitate smooth and efficient policy cooperation to better respond to common challenges and opportunities in parallel with matters that would need swift action to preserve the financial stability in the region. He added that the dialogue aims to contribute to strengthening both regulators capacity to cooperate in addressing common policy tasks, including promoting capital markets, digitalizing the financial sector, and responding to aging populations. 4. Commissioner ITO mentioned that the global movement of digitalization s
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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

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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Jun 16, 2025

2025 Korea Fintech Week to be Held on Nov 26-28 Focusing on Potential of AI and Personalization of Finance

The Financial Services Commission announced that the 2025 Korea Fintech Week is scheduled to be held for three days from November 26 to 28 at aT Center in Seoul. The Korea Fintech Week is the largest fintech exhibition eventorganized by Korea offering a venue for sharing the latest fintech innovation trends on artificial intelligence (AI) and so on and providing chances to promote and attract investment. This years Korea Fintech Week will be held under the theme of Fintech x AI: The Personalization of Finance, which will help to set a stage to make this event as a truly global fintech exhibition. The seventh annual global fintech expo this year, organized in partnership with a group of related institutions and organizations, is expected to breathe in vitality to the fintech industry and speed up financial innovation. With the rapid spread of AI-based digital financial services recently, cooperation and exchange among various stakeholders have become ever more important in the fintech ecosystem. In this regard, this years Korea Fintech Week will feature an expanded scale of global fintech company booths and invite more foreign speakers to promote the sharing of global fintech insights and help to broaden the horizon for domestic fintech companies. With the participation of fintech and AI experts from at home and abroad, this years Korea Fintech Week will introduce the latest fintech innovation trends and facilitate discussions to seek opportunities for cooperation and development of the fintech industry beyond borders. At exhibition halls, there will be country-specific fintech pavilions showcasing unique fintech services and innovation of major countries and offering chances to boost cooperation and exchanges with global fintech companies. In particular, this years Korea Fintech Week will encourage participation from global fintech unicorns to gain better insights into the future of the global fintech industry and help to make the Korea Fintech Week into a truly glo
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Apr 23, 2025

FSC Chairman Visits Boston and New York to Strengthen Financial Cooperation

Chairman Kim Byoung Hwan of the Financial Services Commission visited Boston and New York, the United States on April 21-22. On April 21, Chairman Kim visited Bostons biotech cluster and held a meeting with the investment companies and Korean biotech firms operating in the U.S. to seek insights on ways to bring about regulatory improvements to promote Koreas biotech venture investment. On April 22, Chairman Kim visited New York and had meetings with Blackstone CEO Stephen Schwarzman and Korean financial companies that have established business operations in New York. Visit to Boston Visit to KHIDIs U.S. Office On April 21, Chairman Kim visited the Korea Health Industry Development Institute (KHIDI)s U.S. office in Boston to gain overall insights into the regions biotech cluster (Kendall Square, aka the most innovative square mile on the planet), which is the worlds largest biotech venture ecosystem hosting more than a thousand biotech companies, research institutions, hospitals, and universities. During his visit, Chairman Kim was also briefed about Korean biotech companies operating in the U.S. and the support made available by the KHIDI. Meeting with Venture Capital Investors Chairman Kim held a meeting with a group of Korean venture capitalists operating in Bostons biotech cluster to seek diverse opinions and gain insights on ways to cultivate a biotech venture investment ecosystem in Korea. At the meeting, Chairman Kim said that Koreas venture investment has declined after reaching a peak in 2021-2022, particularly in the biotech sector associated with high risks where long-term investments are required. Since investors may face difficulties in making an exit in the biotech industry, Chairman Kim said that there are concerns over a potential fall in the biotech venture ecosystem. In this regard, Chairman Kim sought diverse recommendations and opinions from participants that will help to foster a biotech venture ecosystem in Korea. Visit to AVEO Oncology Chairman
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Apr 09, 2025

FSC Introduces Plans to Improve Competitiveness of Corporate Financing by Securities Businesses

The Financial Services Commission announced plans to improve the competitiveness of corporate financing by securities businesses on April 9. Under the newly introduced plans, comprehensive financial investment business entities (CFIBEs hereinafter) will be subject to increased credit granting limits for corporate financing and required to supply 25 percent of capital raised from promissory notes and investment management account (IMA) for venture capital. The IMA scheme, which was first introduced in 2017 but has not been utilized since, will go through improvements. Based on the improved IMA scheme, the process for designating CFIBEs that are eligible to handle promissory notes and IMA will begin within this year. Moreover, the plans contain measures to provide incentives for overseas expansion of securities firms and regulatory reforms intended to bolster the soundness management over derivatives-linked securities (DLS) and derivatives-linked bonds (DLB). In June this year, the FSC plans to prepare and announce detailed measures to strengthen the soundness of real estate financing and liquidity management by securities firms and ways to improve rules on the soundness of CFIBEs. FSC Chairman Holds Meeting with CEOs of CFIBEs On April 9, FSC Chairman Kim Byoung Hwan held a meeting with the CEOs of ten major CFIBEs and introduced the governments plans to improve the competitiveness of corporate financing by securities firms centered on regulatory improvements for CFIBEs. At the meeting, Chairman Kim and the participants discussed future directions for securities businesses in sustaining an innovative growth of our economy and promoting value-up in capital markets. In his opening remarks, Chairman Kim underscored the important role of capital markets in making sure that our economy maintains vitality and continues to grow in the future. In this regard, Chairman Kim said that the plans being introduced today are intended to boost the role of securities businesses in co
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Mar 21, 2025

Mobile Foreigner Residence Card to be Accepted for Opening Bank Account at Six Domestic Banks from March 21

The Financial Services Commission, the Ministry of Justice, and the Ministry of the Interior and Safety announced that foreigners residing in Korea with registered IDs will be able to open bank accounts and conduct financial transactions using mobile foreigner residence cards from March 21. From January 10 this year, the Ministry of Justice began to issue mobile foreigner residence cards to those who have registered their status of residence in Korea. A mobile foreigner residence card can be obtained if the foreigner with registered status is 14 years of age or older and owns a smartphone under his or her own name. After downloading mobile ID app on their smartphones, foreign residents can obtain mobile foreigner residence cards by tagging their plastic foreign resident ID cards (integrated circuit cards) on smartphones, or by scanning the QR code with the mobile ID app. To make sure that personal ID verification is conducted safely and conveniently, the Ministry of the Interior and Safety established a blockchain-based and integrated mobile ID system and has introduced mobile IDs for drivers license (Jan. 2022), veteran ID card (Aug. 2023), and foreign resident ID card (Jan. 2025) in coordination with related ministries. The financial sector and the financial authorities have also been making relevant changes to boost the convenience and safety of consumers in their transactions with financial companies. As such, from March 21, 2025, foreign residents will be able to open bank accounts and conduct financial transactions using their mobile foreigner residence cards from six domestic banks (Shinhan, Hana, iM, Busan, Jeonbuk, and Jeju). Under the revised Immigration Act, mobile foreigner residence card is recognized as an equally valid form of ID as the original plastic ID card. The financial authorities in close coordination with the Ministry of the Interior and Safety and the banking sector have since then made changes and upgraded relevant procedures and systems to
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Feb 13, 2025

Transactions of Virtual Assets by Corporate Entities to be Allowed in Stages

Vice Chairman Kim Soyoung of the Financial Services Commission presided over the third meeting of the virtual asset committee on February 13 and held discussions with related ministry officials and private sector experts on the final policy measures aimed at allowing corporate transactions of virtual assets in the virtual asset market. At the meeting, the committee also discussed ways to bring about improvements to the best practice guidelines for listing virtual assets to help resolve the problem of listing competition among exchange service providers and reviewed the progress of regulatory reform regarding the introduction of security token offering (STO). A Roadmap for Allowing Corporate Participation in the Virtual Asset Market Background The transaction of virtual assets by corporate entities has been prohibited in principle following government regulations introduced in 2017. At the time, in comparison to transactions by individuals, the government was concerned that corporate transactions of virtual assets could pose significant threats of money laundering and market overheating. Thus, the government decided to ban corporate transactions of virtual assets to help ease the highly speculative market conditions, and as a routine practice, banks have been restricting the opening of real-name verified accounts for corporations intended for virtual asset transactions. However, with the implementation of the Virtual Asset User Protection Act from July 19, 2024, the legislative foundation has been established to provide protections for users. In addition, there have been changes in market environment with major countries around the world widely accepting corporate transactions of virtual assets and the demand for pursuing new blockchain-related business opportunities rising among domestic businesses. As such, there has been growing demand for permitting corporate entities to engage in virtual asset transactions in the domestic market. Against this backdrop, the virtu
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Feb 03, 2025

Rule Changes Proposed to Establish Legal Grounds for Fractional Investment and Allow ATS to Trade ETFs

The Financial Services Commission issued a preliminary notice of rule changes on February 3 regarding the Enforcement Decree and Enforcement Rules of the Financial Investment Services and Capital Markets Act (FSCMA) and subordinate regulations on financial investment businesses and the issuance and disclosure of securities. The rule changes being proposed address the following. First, there will be legal grounds established for fractional investment platforms issuing beneficiary certificates and securities lending intermediary platforms (both currently operate under the regulatory sandbox program). Second, trading exchange traded funds (ETFs) and exchange traded notes (ETNs) will be made possible via alternative trading system (ATS). Third, IPO bookrunners will be required to conduct due diligence and prohibited from accepting compensation outside the confines of the contract. Other rule changes include the followingmaking backdoor listing (where a larger sized non-listed firm determined by corporate value merges with a smaller sized listed firm) subject to listing review, allowing more types of foreign currency-denominated bonds (supranational bonds and Korean paper) to be included in the foreign currency repurchase agreements (repos) offered to investors, and raising the limit on retail investors over-the-counter (OTC) bond transactions in small scale, which are eligible for same-day transaction settlement (T+0), to KRW10 billion from KRW5 billion currently. The rule changes are put up for public comment until March 17 and expected to take effect from June 16 this year after going through a legislative review and a successive approval process. Establishing Legal Ground for Fractional Investment Fractional investment involves the sale of a share in underlying asset, such as real estate and intellectual property, after it has been securitized, and takes the form of public offering of securities. In general, it can take the form of issuing either non-monetary trust b
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Jan 24, 2025

Follow-Up Measures to WGBI Inclusion to Promote Global Investors' Investment in KTBs

As follow-up measures to the governments plan to revamp Korea Treasury Bonds (KTBs) and Monetary Stabilization Bonds (MSBs) Investment Frameworkannounced in December 2024 following the WGBI inclusion, the Financial Services Commission (FSC) and relevant organizations proposed revisions to the enforcement decree and supervisory rules of the Financial Investment Services and Capital Markets Act (FSCMA) and provided authoritative interpretations. The measures are intended to introduce a consolidated trading scheme for KTBs and support smooth implementation of the Global Operating Model. Introducing Omnibus Trading Accounts for KTBs The introduction of omnibus settlement accounts for KTBsin June 2024 has enabled foreign investors to settle their KTB transactions via a consolidated account, without opening individual settlement accounts with custodian banks (e.g. a Korean branch of a foreign bank). However, it still remains unclear whether foreign financial investment service providers are allowed to place consolidated orders of KTB trading on behalf of their clients such as individual funds and investors to be linked with omnibus settlement accounts for KTB transactions. To address this issue, the FSC and relevant organizations provide authoritative interpretation that foreign financial investment service providers are allowed to consolidate their clients orders to be linked with omnibus settlement accounts for consolidated settlements. To make it further clear, the FSC has proposed revisions to the Regulations on Financial Investment Business to newly introduce omnibus trading accounts for KTBs.The introduction of omnibus trading accounts will enhance the convenience for foreign investors by consolidating the overall process of KTB transactions. Under the new scheme, foreign investors will be able to place trading orders via omnibus trading accounts opened with securities firms and banks; and settle the transactions through omnibus settlement accounts opened at Korea
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Jan 21, 2025

Reform Plans for IPO and Delisting Rules

On January 21, the Financial Services Commission and related organizations including the Financial Supervisory Service (FSS), Korea Exchange (KRX), Korea Financial Investment Association (KOFIA) and Korea Capital Market Institute (KCMI) held a joint seminar on improving initial public offering (IPO) and delisting rules, as part of the governments ongoing efforts for capital market reforms. At the seminar, the FSC unveiled reform plans for IPO and delisting rules and gathered feedback from various market participants. FSC Chairman Kim Byoung Hwan delivered his congratulatory remarks outlining the background and directions of the reform plans. The Chairman said that the market structural improvement is needed to boost the overall valuation of our capital market as the government has been pushing forward capital market reform initiatives since last year. Regulatory reforms on IPO and delisting rules will be pushed forward as another major task for the value-up initiatives, he emphasized. In regard with the IPO market, Chairman Kim said that reform plans will incentivize institutional investors to hold shares for a longer period under a lock-up commitment, which will help shift the IPO market more towards investments based on corporate value. Reforms will also strengthen the roles and responsibilities of underwriters for determining appropriate IPO prices and securing mid-to-long-term investors, he added. Regarding the delisting rules, Chairman Kim explained, the authorities will strengthen the requirements for companies to remain listed and streamline delisting procedures so that companies undermining market trust can be timely removed without delay. Along with this, Chairman Kim suggested that the government will consider overhauling the stock market structure to make it more efficient and provide stronger investor protection. We will seek differentiation and linkage between market segments so that companies can raise funds in the market tailored to their growth stage
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Dec 19, 2024

FSC Chairman Holds Meeting to Review Business Financing Conditions and Discuss Response Strategies

Chairman Kim Byoung Hwan of the Financial Services Commission held a meeting to review business financing conditions and response strategies with officials from policy financial institutions and related businesses on December 19. The meeting was held to collect opinions from businesses and to preemptively respond to concerns about business financing conditions amid the continuation of foreign exchange market volatility and uncertainties at home and abroad. The following is a summary of Chairman Kims remarks. A Summary of Chairmans Remarks Despite recent political situations, business financing market situations are largely showing signs of stability. However, there exist concerns about deteriorating conditions due to various factors at home and abroad. Therefore, it is necessary that authorities come together with policy financial institutions and commercial banks to discuss ways to alleviate concerns in the market. To this end, first, the government will continue to carry out what needs to be done to address market anxiety. Authorities will postpone the introduction of stress capital buffers and improve the ways in which risk weights are calculated to help ease the banking sectors burden of their soundness management and to facilitate an expansion of business financing activities. In addition, the government will closely work with the National Assembly to ensure prompt passage of economic legislations. Authorities will also work to ensure the supply of policy financing support effectively. After taking into account opinions from related ministries, authorities will prepare plans for supplying policy funds for next year and provide adequate funding support to key strategic sectors. Authorities will also work to boost investment support for future growth sectors and businesses equipped with innovative technologies. In preparing their business plans for next year, commercial banks are asked to pay particular attention to the stabilization of the real economy. In this
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Dec 19, 2024

FSC and FSS Announce Measures to Ensure Market Stability and Bolster Support for the Real Economy

The Financial Services Commission and the Financial Supervisory Service announced on December 19 a set of measures intended to ensure financial market stability and enhance the financial sectors capacity to support domestic businesses and the real economy in preparation for a potential expansion of market volatility caused by ongoing uncertainties at home and abroad. After having a series of market monitoring and industry group meetings with financial companies, the capacity enhancement measures for financial companies soundness, liquidity, and financial conditions have been drawn up well within the scope of international standards, such as the Basel III framework. First, the stress capital buffer requirement for banks that was initially set to be introduced this year will be postponed until the second half of 2025. Authorities will reexamine the exact timeline and method for introducing stress capital buffers in the first half of 2025. Second, with regard to the foreign exchange (FX) positions of banks, the non-hedgeable types of FX positions, such as investments on overseas branches that are not significantly exposed to the risk of short-term volatility in the FX market, will not be counted toward the calculation of their FX risk exposures. Third, when insurance companies make contributions to the stock market stabilization fund through purchase of the fund, the amount being calculated toward the risk exposure of their K-ICS (Korea Insurance Capital Standard) ratios will be reduced from the entire amount to half the amount. Moreover, the following measures have been prepared to lower the burden of financial companies in issuing loans and investing in domestic companies, thereby enhancing financial companies capacity to support domestic businesses and the real economy. Fourth, changes will be made to the 400 percent risk weight currently applied across the board on new technology investment funds, venture funds, and other types of investment association funds estab
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