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May 27, 2024
- FSC Announces Measures to Support Covered Bond Market to Facilitate Supply of Long-term, Fixed Rate Mortgages
- The Financial Services Commission announced that an agreement signing event was held between Korea Housing Finance Corporation (HF) and five major commercial banks to facilitate payment guarantees on covered bonds on May 27. In accordance with this agreement, HF will begin to provide payment guarantee service on covered bonds issued by banks starting from May 27. This is part of the broader set of government plans intended to support the covered bond market with aims to increase the supply of long-term, fixed interest rate mortgage products by commercial banks. Through HFs payment guarantee service, commercial banks are able to issue covered bonds at lower interest rates and investors are able to invest in safe, long-term assets, which require relatively little capital costs. For instance, with HFs payment guarantee service, covered bonds issued by banks with an AAA rating will have 5 to 21 basis points lower interest rates for issuance, when compared to typical bank bonds with same maturities. Therefore, if banks are incentivized in this way to reduce funding costs, this will encourage them to provide more long-term, fixed interest rate mortgage products at lower interest rates. HF also plans to seek re-securitization of covered bonds. Under this program, HF will purchase 10-yr covered bonds issued by banks, for instance, and through a settlor-trustee trust, issue asset-backed securities and sell them. This program will facilitate the issuance and purchase of long-term covered bonds in the market, and the supply of long-term funds raised this way can be put to use in providing long-term, fixed interest rate mortgages for houses valued more than KRW600 million, which is currently unavailable under the policy mortgage loan program. In line with the introduction of HFs payment guarantee service, there will be other types of incentives for banks and financial institutions. First, when issuing covered bonds with 10-yr or longer maturities, banks will be allowed to use (
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May 21, 2024
- Authorities Meet to Discuss Progress and Plan for Temporarily Eased Financial Regulatory Measures
- The Financial Services Commission held a meeting with related authorities and industry associations to check progress and discuss further plans for the temporarily eased financial regulatory measures on May 21. At todays meeting, authorities reviewed the prudential management and liquidity situation in each sectorbanks, financial investment companies, specialized credit finance businesses, and savings banksand discussed further plans for extending the availability of eased regulatory measures that are scheduled to expire at the end of June this year. At the meeting, participants assessed that considering current market conditions showing signs of stability and financial sectors response capacity, financial companies are expected to be able to maintain regulatory ratios even with the termination of the eased regulatory measures. However, given the potential of growing uncertainties in the future, participants agreed that some of the eased regulatory measures need to be made available on an extended basis. In this regard, first, the authorities discussed the need to gradually roll back the easing of liquidity coverage ratio (LCR) in the banking sector, which was first introduced in April 2020 in the wake of the COVID-19 pandemic, by raising banks LCR requirement from the current level of 95 percent to 97.5 percent for the second half of 2024. Most banks are currently operating with their LCRs exceeding 100 percent. Although the level of bank bonds issuance has been rising somewhat, considering bond market conditions and expectations for future demand for funds, the recent rise in bank bonds issuance is not expected to have a significant impact on the flow of funds. The banks LCR requirement, in this regard, is scheduled to be raised by 2.5 percentage points every six months, while the authorities will need to review market conditions in the fourth quarter of 2024 to decide further plans from January 2025 and thereafter. Second, the authorities discussed and decided to
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May 20, 2024
- FSC Proposes Rule Changes to Ensure Steady Supply of Funds for Microfinance Assistance
- The Financial Services Commission proposed rule changes in the Enforcement Decree of the Microfinance Support Act to ensure the provision of steady supply of funds for microfinance assistance on May 20. The Korea Inclusive Finance Agency (KINFA) has been expanding the level of microfinance support being provided to vulnerable individuals in recent years against the backdrop of the COVID-19 pandemic, continuation of high interest rates and high prices, and the growing need to protect vulnerable borrowers and prevent damages caused by illegal private lending activities. With interest rates and prices expected to stay higher for longer, there is a continuing need to bolster the provision of microfinance assistance to help vulnerable individuals. In this regard, the FSC is announcing a revision proposal for the Enforcement Decree of the Microfinance Support Act, which will temporarily increase the rate of contributions financial companies make in relation to the size of their handling of household loans, while providing a temporary reduction in the required amount of contributions for financial companies that are actively supplying policy-based microloan products. First, the rate of contributions financial companies make in relation to the size of their household loans will increase by 0.005 percentage points in the banking sector to 0.035 percent and by 0.015 percentage points for insurance companies, mutual finance businesses, specialized credit finance businesses, and savings banks to 0.045 percent. Currently, all financial companies are subject to the same contribution rate of 0.03 percent. The increased contribution rates will be in place until December 31, 2025. Second, a reduction of 0.5 percentage points in contribution amounts will be granted to the financial companies making active efforts in handling policy-based microloan products until December 31, 2025. KINFA will evaluate the performance of financial companies in supplying policy-based microloan products.
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May 16, 2024
- FSC Approves DGB Daegu Bank's Transition from Regional Bank to Nationwide Operator
- The Financial Services Commission decided to approve DGB Daegu Banks application to make a transition from a region-specific operator to a nationwide commercial bank at the 9th regular meeting held on May 16. The FSCs approval will introduce a new nationwide commercial bank for the first time in 32 years since 1992, bringing the total number of nationwide banks to seven. On July 5, 2023, the government announced plans to allow regional banks transition to become nationwide banking business operators as part of its broader policy to promote fair and effective competition in the banking sector. As a follow-up measure, on January 31, 2024, the FSC and the FSS introduced specific method and procedures for authorizing a regional banks transition to operate as a nationwide bank. Following this, on February 7, 2024, DGB Daegu Bank applied for the modification of conditions specified under the Article 8 of the Banking Act. Upon receiving the application, the FSC and the FSS then went through a careful review process by having an external review committee and reached a decision that DGB Daegu Bank meets all the regulatory requirements necessary to be authorized to operate as a nationwide commercial bank. With DGB Daegu Bank making a transition to operate as a nationwide operator, the authorities expect that there will be enhanced competition between banks with increased benefits and convenience afforded to consumers. DGB Daegu Bank plans to open 14 new branches in the Seoul metropolitan area and across regions spanning from Chungcheong-do and Gangwon-do, which will help to boost the level of access to financial services for consumers residing in these regions. In addition, DGB Daegu Bank plans to improve customers access to financial services through advancement of its own service application and expanded partnership with third-party platforms, so as to help reduce costs and offer low interest rate products to consumers. DGB Daegu Bank will also expand credit supply to the s
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May 16, 2024
- FSC Chairman Holds Meeting on Promoting Investment for Startups and Venture Businesses
- Chairman Kim Joo-hyun of the Financial Services Commission held a meeting on promoting investment for startups and venture businesses on May 16. At the meeting, participants went over the progress of policy measures implemented since April last year, which were intended to boost funding support for innovative startups and venture businesses and bolster their competitiveness amid the investment crunch experienced by startup businesses. Backed by the active role of policy funds, experts at the meeting assessed that the investment situation shows signs of recovery and that the situation in domestic market appears to be faring better than those seen in overseas markets. A group of businesses that have benefited from particular policy measures also attended the meeting to share their experiences in (a) expanding business operation through MA, (b) taking advantage of the program intended to assist businesses operating outside the Seoul metropolitan area, and (c) going overseas or attracting investment from overseas. These businesses requested that these policy support measures made available on an ongoing and expanded basis. After reviewing the status of funding support made available for startups and venture businesses by Korea Development Bank, Industrial Bank of Korea, Korea Credit Guarantee Fund, and Korea Growth Investment Corporation, Chairman Kim outlined plans for this years startup and venture investment support. First, a total of KRW15.4 trillion in policy funds will be supplied, an increase of about 30 percent from the previous year, to ensure the provision of seamless funding support for up-and-coming startups equipped with technological prowess. Through IBKs venture investment program, some KRW500 billion or more in funding support will be provided to early-state startups. In addition, KDB-IBKs secondary fund worth KRW1.2 trillion has already begun with its investment projects in May this year to facilitate functions and improve conditions in the secondary ma
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May 16, 2024
- KoFIU Unveils H2 2023 Survey Results on Virtual Asset Service Providers
- The Korea Financial Intelligence Unit (KoFIU) conducted a survey on the twenty-nine registered virtual asset service providers (VASPs) to see the current state of the domestic virtual asset market and keep relevant statistics up to date. Survey Overview (Respondents) 29 VASPs(22 exchange service providers and 7 wallet and custodian service providers) (Survey Method) Data collected from VASPs (Period Covered) July 1, 2023 to December 31, 2023 Key Survey Findings for H2 2023 The domestic market for virtual assets in H2 2023 saw increases in terms of average daily trading volume (up 24%), market capitalization (up 53%), total operating profits (up 18%), and total volume of deposits in KRW (up 21%), as virtual asset prices increased and investment sentiment recovered. The total number of users eligible to trade (up 6%) also turned back up from the decline seen in the first half of 2023. When compared with the survey results of H1 2023, in the latter half of the year, the KRW-based exchange service providers saw a notable increase in new listings (up 70%), while the coin-only exchange service providers experienced a significant number of delistings (down 82%), which brought down the total number of virtual asset types available for trade (down 3.5%). Especially, the number of exclusively listed virtual assetsthose tradable via single VASP in domestic marketdropped considerably (down 9.3%). Maximum drawdown, or price volatility, still remained high at 61.5 percent (62.4% in H1 2023). External transfers of virtual assets by exchange service providers also increased considerably (up KRW8.4 trillion, or 28%). Among them, those transferred to the registered entities under the travel rule rose rapidly (up KRW3.8 trillion, or 57%). As of the end of December 2023, there were two coin-only exchange service providers and two wallet and custodian service providers that announced plans to terminate their business operations. As there are growing numbers of VASPs closing down their b
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May 16, 2024
- 2024 Korea Fintech Week Scheduled for Aug 27-29
- The Financial Services Commission announced that this years global fintech expo, 2024 Korea Fintech Week, is scheduled to be held for three days from August 27 to August 29 at Dongdaemun Design Plaza (DDP) in Seoul. Last year, Korea Fintech Week attracted some 11,000 visitors and provided fintech businesses with diverse opportunities to pitch new fintech business ideas and attract investments. The sixth annual fintech expo this year, which will be organized jointly with related organizations, agencies, and industry groups, will offer a venue for invigorating the fintech industry and accelerating innovation in financial services. Since the adoption and use of generative AI across different fields is taken as a key to boosting innovation and productivity these days, this years Korea Fintech Week will be held under the theme of Beyond Boundaries: Fintech and AI Redefining Finance to more closely highlight the effects of AI on the fintech and financial sectors. Exhibition halls will be prepared, inviting fintech businesses and financial companies to set up booths for promoting and demonstrating their latest and innovative financial technologies that will help to boost user convenience. A series of fintech theme-based seminars are scheduled to be made available throughout the three-day period, which will provide participants and visitors with opportunities to share global trends and insights and have in-depth discussions on diverse topics, such as the adoption and use of new AI technology, cyber and information security, ESG, insurtech, and so on. A mobile business meeting platform is planned to be introduced this year to support networking among fintech industry officials and to give chances to more effectively pitch new business ideas and secure investments. The IR Open Stage and the Networking Lounge will be operated on an expanded basis. In addition, there will be much enhanced investment promotion programs for up-and-coming fintech businesses via Korea Development B
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May 13, 2024
- Household Loans, April 2024
- In April 2024, the outstanding balance of household loans across all financial sectors rose KRW4.1 trillion (preliminary) from the previous month. When compared with the end of 2023, the household loan balance dropped KRW1.8 trillion, which shows that the growth trend remains on a stable course. * Change (in trillion KRW, m-o-m): +2.6 (Nov 2023), +0.1 (Dec), +0.9 (Jan 2024), -1.9 (Feb), -4.9 (Mar), +4.1 (Apr)p (By Type) Home-backed mortgage loans increased KRW4.1 trillion as the banking sector saw a significant growth in mortgage loans (up KRW0.5 trillion up KRW4.5 trillion). Other types of loans went up KRW0.03 trillion from a month ago (down KRW5.0 trillion) as the banking sector saw an increase of KRW0.6 trillion, while the nonbanking sector saw a slower pace of decline (down KRW2.8 trillion down KRW0.6 trillion). (By Sector) Household loans edged back up in the banking sector while declining at a slower pace in the nonbanking sector. Banks saw a rise of KRW5.1 trillion in household loans compared with the previous month as relevant statistics on household loan data began to incorporate certain types of housing loans previously excluded from household loan statistics but classified instead as policy funds. Banks issuance of new mortgage loans also expanded from a month ago (up KRW2.0 trillion up KRW3.6 trillion). A series of initial public offerings scheduled in April-May also pushed up the volume of credit loans temporarily. In the nonbanking sector, household loans fell KRW1.0 trillion. Although the pace of the decline slowed compared with the previous month (down KRW3.3 trillion), the overall trend since the second half of 2022 has steadily shown a slowing trend. Mutual finance businesses continued to see a decline (down KRW2.1 trillion) in household loans, while specialized credit finance companies (up KRW0.6 trillion), savings banks (up KRW0.5 trillion), and insurance companies (up KRW0.01 trillion) all saw growth led by increase in credit loans. (Assessment
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May 13, 2024
- FSC and FSS Announce Measures to Seek an Orderly Soft-landing in the Real Estate Project Finance Market
- The Financial Services Commission and the Financial Supervisory Service announced measures to seek an orderly soft-landing in the real estate project finance market on May 13, expanding upon the series of previously introduced measures aimed at stabilizing the market. Background Since the second half of 2022, the government has been working to facilitate an orderly soft-landing in the real estate project finance market through various market stabilization programs designed to stabilize financial markets, such as the PF-ABCP (project finance asset-backed commercial paper) market and bond market, and by providing funding support to the development projects that are considered to be financially viable, while encouraging restructuring or liquidation of projects that are deemed to be unviable. Corporate bond spreads, which stood at 109 bps at the end of September 2022, rose quickly to 177.2 bps on December 1, 2022 due to market anxieties about PF-ABCPs. However, as the government and the private sector actively took steps to respond in a timely manner, by introducing the corporate bond market stabilization fund and the PF-ABCP purchase program, bond market conditions began to stabilize since after January 2023, and corporate bond spreads as of the end of April 2024 stood at 46.6 bps. Spreads on commercial paper (CP) also spiked to 240 bps on November 23, 2022, but have come down to the recent level of 68 bps, showing signs that financial market conditions have returned to stability. To facilitate funding of the development projects that are operating on solid financial grounds, the government introduced a project finance guarantee program worth KRW30 trillion in October 2022, from which about KRW18 trillion has been implemented thus far in support for projects making a transition from bridge loans to project finance loans. Along this line, in September 2023, various lending support programs were also introduced to assist construction companies via policy financial instit
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May 09, 2024
- Authorities Introduce ATS Operation Plan to Promote Improvement in Capital Market Infrastructure
- The Financial Services Commission announced that Koreas first alternative trading system (ATS), Nextrade, will begin to operate in domestic market starting in the first half of next year. This will mark the operation of a multiple and competition-based stock trading system in Koreas capital market as in the case with those found in major overseas economies. Introducing an ATS has been a key part of the governments capital market reform initiative, and it is intended to make domestic capital market more accessible for investors with enhanced convenience for transactions. With the operation of an ATS, stock trading hours will be extended to twelve hours a day from 08:00 am to 08:00 pm. Also, as more order types will become available for investors with enhanced competition to help lower fees, transaction costs will be reduced and trading convenience improved for investors. Seminar on ATS Operation Plan The FSC held a seminar on the measures for operating ATS with the Korea Financial Investment Association, Korea Exchange (KRX), and Nextrade on May 9. As the preliminary approval for operating an ATS was granted to Nextrade in July 2023, the FSC and related organizations have since worked on the measures for ATS operation and plans for ensuring effective market oversight in a comprehensive and integrated manner. At todays seminar, the authorities unveiled the measures and held discussions with market participants. FSC Vice Chairman Kim Soyoung delivered congratulatory remarks at the beginning of the seminar and emphasized the importance of ensuring stability and fairness in market management. Vice Chairman Kim also asked participants to thoroughly prepare for the official launch of an ATS and to ensure that investors are kept posted with relevant information. In addition, Vice Chairman Kim said that the financial authorities will work to prepare guidelines and revise relevant rules and regulations necessary for the operation of an ATS. A New Stock Trading Experience With
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May 02, 2024
- Guidelines on Corporate Value-up Plan Unveiled to Support Listed Companies' Voluntary Efforts to Boost Corporate Value
- The Financial Services Commission (FSC), the Korea Exchange (KRX), Korea Capital Market Institute (KCMI) and relevant organizations held the second seminar on the Corporate Value-up Support Plan on Thursday, May 2. At todays seminar, the draft Guidelines for Corporate Value-up Plan, one of key pillars of the Corporate Value-up Program, was unveiled to gather opinions from various stakeholders. Congratulatory Remarks by FSC Vice Chairman FSC Vice Chairman Soyoung Kim delivered congratulatory remarks reaffirming the governments strong will towards capital market reforms. In addition to regulatory reform initiativesin our capital markets that the government has made over the past two years, listed companies value enhancement efforts will help Koreas stock market tackle Korea discount and rise steadily over mid-to long-term, Vice Chairman said. Regarding the draft Guidelines on Corporate Value-up Plan unveiled today, Vice Chairman emphasized the importance of such plans, saying that corporate value-up plans will enable listed companies to communicate with shareholders and market participants about a comprehensive picture over the companies future, and allow investors to better understand companies in which they are going to invest in and make well-informed decision, thereby listed companies will be able to get proper market valuation for their true intrinsic value or expected value. He added that the corporate value-up program shall be deemed as a long-term initiative. In this regard, the guidelines unveiled today are not the end, but the beginning of our long-term plan, Vice Chairman said. Various incentives and support measures including guidelines, consulting, training, etc, will be provided to encourage active participation of listed companies, and then investors will properly evaluate companies value enhancement efforts and reflect them into their investment decision. The government and relevant organizations will continue to support companies corporate value-up ef
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Apr 30, 2024
- FSC to Promote Investment in Climate Technology Sector
- Chairman Kim Joo-hyun of the Financial Services Commission attended the technology fund agreement ceremony on April 30. This agreement ceremony is a second follow-up measure for expanded financial support measures for climate crisis response after its first follow-up measure the ceremony for the establishment of the Future Energy Fund, which supplies venture capital for the expansion of renewable energy facilities, including offshore wind power. The FSC plans to invest a total amount of KRW9 trillion in the climate technology sector through its various funds like Innovation Growth Fund and Growth Ladder Fund. Among those funds stands the Climate Technology Fund, which Industrial Bank of Korea and five major commercial banks are to commit a total of KRW1.05 trillion into its master fund by 2023, and invest KRW3 trillion in climate technology companies through private capital matching. The master fund is managed by Korea Growth Finance. Chairman Kim stated, Climate technology is both a means to achieve carbon neutrality and a future source of sustenance."He added, "The government and private sector together have come up with the plan for investing a total of KRW9 trillion in the climate technology sector by sector by 2030, including the Climate Technology Fund." Chairman Kim also emphasized that the Climate Technology Fund will be mandated to put a certain ratio of its investments into SMEs and venture companies possessing climate technology to ensure that funds are appropriately allocated. He also urged the Climate Technology Fund to actively seek out investment opportunities and serve as patient capital to support the growth of the climate technology sector, which faces significant uncertainties and challenges in achieving short-term results. The Climate Technology Fund plans to establish the master fund during the first half of the year, select the managers for the feeder funds, and complete the formation of these funds by early next year to commence investment. *
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Apr 22, 2024
- Taskforce on ESG Finance Holds Meeting and Discusses Key Details of ESG Disclosure Standards
- The Financial Services Commission held the 4th taskforce meeting on ESG (environmental, social and governance) finance with related ministries, industry groups, investors, and experts on April 22 to have discussions on details of an open draft on domestic ESG disclosure standards. FSC Vice Chairman Kim Soyoung presided over the meeting and outlined basic principles and key details of the draft standards. A Summary of Vice Chairmans Remarks First, this open draft on domestic ESG disclosure standards is consistent with global standards as it amply takes into account cases from overseas. In this regard, the draft standards have been formulated to ensure interoperability with the ESG disclosure standards of other major countries to minimize the burden of redundant disclosure duties for domestic businesses. In addition, the draft standards will mandate climate-related disclosures first, while keeping the disclosure of information on other non-climate-related ESG elements on a voluntary basis. Second, the draft standards have been prepared to provide quality information to investors. Instead of simply requiring businesses to list up relevant data on climate risks and opportunities, the draft standards will actually promote behavioral change from businesses through a more systematic provision of information disclosures based on important categories, such as governance structure, strategy, risk management process, and so on. Third, the draft standards also take into account the needs of enterprises and ensure that there is no excessive burden placed on them. Considering domestic firms capabilities and level of preparedness, authorities will provide detailed guidelines and allow companies to disclose qualitative informationinstead of quantitative datafor certain types of indicators prone to a large degree of subjectivity in their measurement. This open draft on ESG disclosure standards also takes into consideration the need for our economy to address some of the newly emergi
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Apr 11, 2024
- Household Loans, March 2024
- In March 2024, the outstanding balance of household loans across all financial sectors fell KRW4.9 trillion (preliminary), declining at a faster pace compared to the previous month (down KRW1.9 trillion). * Change (in trillion KRW, y-o-y): +6.2 (Oct 2023), +2.6 (Nov), +0.1 (Dec), +0.9 (Jan 2024), -1.9 (Feb), -4.9 (Mar)p (By Type) Home mortgage loans increased KRW0.05 trillion, growing at a much slower pace compared to the previous month (up KRW3.7 trillion), due to a substantial drop in the banking sector (up KRW4.7 trillion up KRW0.5 trillion). Other types of loans declined KRW4.9 trillion, with drops seen in both the banking (down KRW2.8 trillion down KRW2.1 trillion) and nonbanking (down KRW2.7 trillion down KRW2.8 trillion) sectors. (By Sector) Household loans turned lower in the banking sector, while the pace of decline moderated in the nonbanking sector. In March, banks saw a decline of KRW1.6 trillion in household loans, which shifted down from the growth of KRW1.9 trillion a month ago, with the implementation of the stressed debt service ratio (DSR) rules. Other types of loans from banks also continued to decline (down KRW2.8 trillion down KRW2.1 trillion), led by credit loans. In the nonbanking sector, household loans fell KRW3.3 trillion. Mutual finance businesses (down KRW2.4 trillion) and insurance companies (down KRW0.2 trillion) saw slower paces of decline from a month ago, while specialized credit finance companies (down KRW0.4 trillion) and savings banks (down KRW0.3 trillion) saw faster paces of decline. (Assessment) The continued decline in household loans appears to be caused by the prolonged high interest rates and delayed recovery in housing market transactions. The financial authorities will continue to closely monitor situations regarding the housing market and interest rates to make sure that household debt growth is stably managed with a long-term perspective. * Please refer to the attached PDF for details.
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Apr 09, 2024
- Fintech Innovation Fund Worth KRW500 Billion Planned for 2024-2027
- The Financial Services Commission held a meeting with fintech businesses, venture investors, and related industry groups on April 9 and held talks on ways to promote investment and boost support for the fintech industry. FSC Vice Chairman Kim Soyoung presided over the meeting and spoke about the importance of todays meeting in his opening remarks. Vice Chairman Kim said that a continuation of high interest rates and economic uncertainties has pushed down investments for startup businesses and the fintech industry around the world. To help improve the competitiveness of our financial industry, Vice Chairman Kim added that it is crucial to make policy efforts to revitalize the fintech industry and its investment ecosystem. In this regard, Vice Chairman Kim said that the government will (a) expand the operation of fintech innovation funds to continue to make investment in promising fintech businesses, (b) upgrade the financial regulatory sandbox program, and (c) support overseas expansion of fintech businesses and expand the supply of related policy funds. As a part of the governments plan to continue to promote investment in the fintech industry, the FSC and related organizations discussed and announced a plan to set up a second batch of fintech innovation funds worth KRW500 billion for operation for four years between 2024 and 2027. The first batch of fintech innovation funds was in operation between 2020 and 2023, during which it raised a total of KRW513.3 billion and supplied KRW282.4 billion in investment to some 85 fintech startups. Thus, the size of fintech innovation funds will grow to a total of KRW1 trillion for eight years between 2020 and 2027. For creating the second batch of fintech innovation funds, big tech platform companies will newly make contributions following an agreement signed at last years Korea Fintech Week. In addition, Korea Growth Investment Corporation will support business-to-business (B2B) collaboration and partnership between fintech b
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Apr 04, 2024
- FSC Introduces a Plan for MyData 2.0 in Financial Services
- The Financial Services Commission held a meeting with financial MyData service providers and related organizations and announced a plan for MyData 2.0 in financial services on April 4. The measures included in the plan for MyData 2.0 have been drawn up after having a series of taskforce meetings with experts and industry groups. Since MyData in financial services first became available in January 2022, there are now 69 MyData service providers with more than 117.8 million subscribers in cumulative terms (as of the end of February 2024). With its successful launch and widespread usage, MyData in financial services has become a crucial part of everyday life for consumers, boosting convenience and improving access to financial services. However, during the past two years of operation, suggestions have been raised to improve service usability. Thus, the FSC has drawn up a plan for MyData 2.0 in financial services, taking into account these suggestions and opinions from users, with aims to expand data availability, promote usage, boost user convenience, and ensure data protection. First, the service availability will be expanded to the digitally vulnerable groups, such as the elderly and individuals with visual impairment. For these individuals, visiting bank branches to apply for and use MyData service on-site will be made possible. In addition, teens aged 14 year-old or older will be able to sign up for financial MyData services without having to present consent from a parent or legal guardian. Second, more detailed information about consumers spending records and payment history, including names of sellers, purchased items, and so on, will be made available to MyData service providers to help them better analyze each individual consumers spending pattern for the provision of more individually tailored asset management service. In addition, the scope of data opened up for financial MyData service will be expanded to include data from the public sector MyData service. T
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Apr 02, 2024
- Future Finance Taskforce Kick-off Ceremony Takes Place
- The Financial Services Commission held a kick-off ceremony for future finance taskforce on April 2, together with relevant agencies, thinktanks, and academia. In accordance with the 2024 financial policy agendas, a taskforce on future finance has been organized with the aim of finding ways to tackle various challenges, such as climate crisis, population decline, and digital transformation. At the meeting, participants freely discussed about challenges and opportunities in the financial sector brought by demographic shift, climate change, and technological advancement. In his opening remarks, FSC Vice Chairman Kim Soyoung said that we are in the midst of mega trends, such as rapid change in population structure, climate change, and technological innovation. In this regard, Vice Chairman Kim said that these challenges constitute the known unknowns and that they demand systematic analysis and measured responses from both the public and private sectors. The future finance taskforce will be organized into three working groupspopulation, climate, and technology. First, the population working group aims to identify demographic factors that will have impact on the real economy and financial markets. It will also seek to explore ways to more effectively provide financial support measures to help young adults and newlyweds. Second, the climate working group aims to seek ways to reach the 2050 carbon neutral goal and enhance corporate climate adaptation capacity with a long-term perspective. It will also explore various ways to promote climate financing in low-carbon transition, renewable energy, and so on. Third, the technology working group aims to promote the use of advanced digital technology, such as blockchain and artificial intelligence, in financial services to boost user convenience and enhance the competitiveness of financial companies. It will also explore ways to more effectively regulate the use of new technologies and ensure financial stability and consumer prote
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Apr 02, 2024
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Apr 01, 2024
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Apr 01, 2024
- KRW11 Trillion-plus in Corporate Financing Support from the Banking Sector to be Provided to MMEs and SMEs
- The Financial Services Commission announced that corporate financing support programs for middle market enterprises (MMEs) and small and medium-sized enterprises (SMEs) will begin to be provided from the banking sector from April 1. This is a part of the total KRW76 trillion-plus corporate financing measures announced in last February, made available by close cooperation between policy financial institutions and five major commercial banks. First, the Korea Development Bank (KDB) and five major commercial banks will provide KRW6 trillion in low interest rate loans exclusively for MMEs that are attempting to enter into new growth sectors and expand their business operation. Qualified MMEs are eligible to receive up to KRW150 billion per business for facilities investment, funding for research and development, and operating costs with the benefit of 1%p reduction in interest rates. Qualified MMEs should meet the industry and/or production requirement specified by the common criteria for innovative growth, which lay out specific industry areas and products qualified for policy funding support for innovative growth. Second, the Industrial Bank of Korea (IBK) and five major commercial banks will provide about KRW5 trillion in interest support program for SMEs that are operating on a normal financial condition but are having difficulties with heavy interest burdens. In this regard, qualified SMEsthose with loans with interest rates of more than 5.0 percentare eligible to receive up to 5 percent reduction in interest rates for one year. When qualified SMEs apply for this interest support program with their lenders, their qualification will be verified by the lender, and they can choose to receive the interest reduction benefit for one year either immediately or from the time of refinancing. Third, the prompt liquidity support program made available for SMEs from the banking sector will be operated on an expanded basis. The liquidity support program was first introduced by
