Press Releases - Financial Services Commission

Press Releases

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Dec 07, 2023

FSC Proposes Rules Change to Establish Reasonable Standards for Calculating Data Transfer Fees in MyData

The Financial Services Commission issued a preliminary notice of rules change regarding the supervisory regulation on credit information businesses on December 7, with aims to continue to seek innovation in financial MyData services. The revision proposal has been prepared after having taskforce meetings and discussions with MyData service providers and data specializing institutions. First, to ensure a sustainable operating environment for MyData services, the revision proposal establishes reasonable standards for pricing data transfer costs. Since the onset of MyData services in January 2022, MyData service providers have been receiving and gathering information transferred from a variety of data providers, such as financial institutions, telecommunications service providers and payment gateways. In this regard, this revision proposal provides reasonable grounds for pricing the cost of transferring data for MyData service providers. More specifically, a standard cost approach will be used to calculate data transfer costs, and the standard cost will be calculated based on the costs required to set up and operate a relevant data transfer system. On a need-to-need basis, a cost discount can be provided to MyData service providers based on individual business circumstances. To ensure fairness and transparency, specific procedures for pricing data transfer costs will be determined by Korea Credit Information Services (KCIS), which will set up a consultative body made up of various stakeholders. The pricing standards will be applied from 2023 and payable in installments from 2024. The Korea Financial Telecommunications Clearings Institute (KFTC) will set up an integrated payment system for data providing entities and MyData service providers. Second, the revision proposal will allow data specializing institutions to provide consulting in the areas of data convergence and pseudonymization, especially to small- and medium-sized fintech businesses, which often lack profess
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Dec 06, 2023

FSC and FSS Hold Meeting with Insurance Businesses

Chairman Kim Joo-hyun of the Financial Services Commission met with the CEOs of major insurance businesses along with Governor Lee Bok-hyun of the Financial Supervisory Service on December 6 as part of a series of meetings scheduled with financial sectors to ensure close communication and mutual understanding with the industry. In his opening remarks, Chairman Kim first talked about the importance of corporate social responsibility among insurance businesses. As consumers are currently facing difficult financial situations due to high interest rates and inflation, Chairman Kim said that insurance businesses could place more efforts to help alleviate the difficulties experienced by their customers. Second, Chairman Kim talked about changes taking place in the insurance sector with the adoption of IFRS 17changes not only in accounting practices but also in their product development, asset and liability management and sales strategies. In this regard, Chairman Kim said that insurance businesses should work to ensure that these changing practices are not solely focused on boosting their financial performance, but instead, insurance companies should also work on building long-term trust with their customers. Lastly, Chairman Kim talked about the importance of finding new ways to ensure growth amid low birth and aging population and digital transformation. In this regard, Chairman Kim said that the government will provide support for innovation and growth of the insurance industry through regulatory improvements. At the meeting, insurance businesses and the industry groups shared the same view about the need to strengthen corporate social responsibility and said that the insurance sector will work to introduce specific measures after having an industry-wide coordination. * Please refer to the attached file for details.
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Nov 29, 2023

FSC Proposes Measures to Improve the Early Loan Repayment Charge System in the Banking Sector

The Financial Services Commission announced a plan to improve the early loan repayment charge system in the banking sector on November 29 after having a series of consultation with banks between October and November. The proposed measures intend to make banks early repayment fees more reasonable and transparent for consumers. Currently, under the Act on the Protection of Financial Consumers, it is prohibited in principle for banks to impose early repayment charges on loans, although the law allows them to charge early repayment fees if the borrower make repayments within three years from the date of loan issuance. In this regard, banks charge early repayment fees to make up for the loss expected from interest profits and to compensate for relevant administrative costs. On average, the volume of early repayment fees received by banks amount to about KRW300 billion every year. However, there have been complaints about the fact that the banks early repayment fee system is being operated in a uniform way and that it fails to take into account the actual costs incurred by individual banks in a realistic way. For instance, the early repayment fee rates charged on home mortgage loans by five major banks are currently 1.4 percent for fixed interest rate loans and 1.2 percent for variable interest rate loans across the board. On the contrary, examples from overseas cases show that banks early repayment charges can be operated in various ways while taking into account the actual cost and particular operational needs of banks. Therefore, the authorities plan to revise the relevant supervisory rules and best practice guidelines and strengthen disclosures to make the current early repayment charge system more reasonable and transparent. First, a set of guidelines will be established to ensure that banks charge early repayment fees reflecting only the necessary costs actually incurred in the process of handling loan products. For instance, the guidelines will reflect the cost dif
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Nov 27, 2023

Authorities Meet with the Banking Sector and Hold Talks on Boosting Integrity, Social Responsibility and Innovation

Chairman Kim Joo-hyun of the Financial Services Commission met with the heads of major banks along with Governor Lee Bok-hyun of the Financial Supervisory Service on November 27 as part of a series of meetings scheduled with financial sectors until the end of this year. In his opening remarks, Chairman Kim talked about boosting integrity, social responsibility and innovation in the banking sector, emphasizing that the public needs to be able to trust bank employees, believe that financial services from banks are available for them in times of difficulty, and see that banking services are adopting high-tech and innovative technologies. With regard to the revision bill of the Act on Corporate Governance of Financial Companies currently moving through the National Assemblys legislative process, Chairman Kim said that this revision will help to establish an awareness among bank employees about the need to attend to their business more ethically. On the issue of household debt, Chairman Kim said that, from the standpoint of ensuring a sustainable growth in the economy, the role of the banking sector is important to effectively manage household debt growth. The seventeen domestic banks attending the meeting today are planning to draw up specific measures to help reduce the interest payment burden of small businesses and the self-employed. The banking sector also pledged to make efforts to establish appropriate internal control practices expected from them in preparation for the implementation of the revised Act on Corporate Governance of Financial Companies. The FSC and the FSS plan to hold subsequent meetings with nonbank financial institutions to ensure close communication and mutual understanding with the industry. * Please refer to the attached file for details.
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Nov 23, 2023

Authorities Decide to Extend the Period of Operating Market Stabilization Programs and Eased Regulations

Vice Chairman Kim So-young of the Financial Services Commission presided over a meeting with officials from the Financial Supervisory Service, Korea Development Bank, Korea Credit Guarantee Fund and other market experts on November 23 to check condition of the current bond and short-term money markets and discuss plans for various market stabilization programs and eased regulatory measures. Market stabilization programs At the meeting, the authorities decided to extend the period of operating the bond market and short-term money market stabilization programs, which began to operate since last year. Although the demand for these support programs this year has been considerably lower than the previous year, the authorities decided to extend the period of operation for one year for the programs that are set to expire soon. As such, the operation of the bond market stabilization fund and the corporate bond and CP (commercial paper) purchase program will be extended until the end of December 2024, and the availability of the PF-ABCP purchase program for PF-ABCPs issued by securities firms will be extended until the end of February 2025. The primary collateral bond obligation (P-CBO) support program run by the Korea Credit Guarantee Fund and intended to support bond market stabilization will continue to operate as planned until the end of 2024. Eased regulatory measures The authorities also discussed extending the period of operating eased financial regulatory measures which are set to expire at the end of this year. Although the current liquidity and soundness indicators show that financial institutions are capable of maintaining regulatory ratios without the support form eased regulations, considering the possibility of abrupt changes in market situations, the authorities decided to extend the availability of eased regulations until the end of June 2024. The eased regulatory measures subject to the period extension include the following. a) Banks: Temporary easing of li
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Nov 21, 2023

KoFIU Advises VASPs to Inform Customers about Business Closure One Month before Expected Termination Date

The Korea Financial Intelligence Unit (KoFIU) issued recommendations for virtual asset service providers on November 21 that those expected to terminate their business operation should inform their customers about the business closure plan at least one month prior to the expected termination date. More specifically, when deciding to terminate their business operation, VASPs are first advised to establish an internal process to minimize potential damage or loss to virtual asset users, addressing issues such as the issuance of advance notice to their customers, provision of support for deposit/asset withdrawal, handling of user data and remaining user assets, etc. Second, when a business closure is in sight, VASPs are recommended to notify their business termination plan at least one month before the expected termination date communicated via website and to the users individually. After notifying, they should immediately halt signing up new users or accepting deposits. In addition, they should set up a plan and allow a sufficient timeframe (for instance, for at least three months) for their customers to withdraw deposits (in cash or virtual asset). Third, the VASPs facing business termination should handle their customers user data and other relevant data as required by related laws. Fourth, virtual asset users are advised to check the operating status of their service providers to avoid any loss or damage. If they find that their service providers are no longer in operation, they should check their assets in custody and seek immediate redemption. The KoFIU will closely monitor VASPs to ensure that their business termination does not cause damage to users and carry out site inspections when deemed necessary. The authorities will also thoroughly check whether the VASPs facing business termination are faithfully carrying out measures to ensure user protection. * Please refer to the attached file for details.
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Nov 20, 2023

FSC and FSS Meet with Financial Holding Companies

Chairman Kim Joo-hyun of the Financial Services Commission met with the heads of major financial holding companies along with Governor Lee Bok-hyun of the Financial Supervisory Service on November 20 and held talks on ways to help reduce the interest payment burden of small businesses and the self-employed. In his opening remarks, Chairman Kim talked about the challenges facing small businesses due to the abruptly increased interest payment burden within a short period of time. Due to high interest rates, Chairman Kim pointed out that financial institutions have been able to make high interest profits at levels unseen in the past, and that this means heavier payment burden on borrowers. Given this situation, Chairman Kim urged financial holding companies to come up with ways to help reduce the heightened burden of interest payments in the post-pandemic period inasmuch as their prudential management capacity allows. The eight major financial holding companies and the Korea Federation of Banks attending the meeting today decided to collectively expand their social responsibility by actively looking into ways to reduce the interest burden of small businesses and the self-employed. The financial holding companies and the banking sector are expected to engage in further discussions to come up with a specific support plan for announcement within this year. Beginning with todays meeting, the FSC and the FSS plan to hold subsequent meetings with each individual financial sector, such as the banking, financial investment and insurance sectors, to foster mutual understanding and engagement on a continuing basis. * Please refer to the attached file for details.
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Nov 16, 2023

Authorities Discuss Stock Short Sale Reform Measures

Vice Chairman Kim So-young of the Financial Services Commission attended a meeting on short selling reform measures which brought together authorities from the private sector, the ruling party of the National Assembly and the government on November 16. At the meeting, the authorities discussed a direction for making improvements to the short selling system. The reform measures discussed at todays meeting are not finalized measures for implementation but a set of proposals laying out a direction for further discussions and refinement at the National Assembly and with the public. Overall, the proposed measures are aimed at (a) leveling the playing field between institutional and retail investors, (b) preventing naked short sales in advance, (c) strengthening the detection and punishment of illegal short selling activities, and (d) expanding short sale disclosure. Stock Short Sale Reform Proposal I. Leveling the playing field Currently, the stock borrowing conditions for short selling remain unequal between institutional investors and retail investors, although the gap has been narrowed considerably through past reform measures for retail investors, extending the stock repayment period from 60 days previously to 90 days and lowering the margin requirement from 140 percent previously to 120 percent. However, the discrepancies in stock lending still exist and this has been raised as a problem of unleveled playing field for retail investors vis--vis institutional investors. As a way to resolve this problem, the authorities propose making the stock repayment period and margin requirement same for both institutional investors and retail investors. More specifically, first, the stock repayment period for institutional investorscurrently unrestricted and determined on a contract-by-contract basiswill be set as 90 days, same as that for retail investors. The Korea Securities Depository, which handles stock lending to institutional investors, should check the repayment period o
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Nov 13, 2023

Campaign to Return KRW17.9 Trillion in Unclaimed Financial Assets Begins

The Financial Services Commission announced that a campaign to return unclaimed or dormant financial assets worth about KRW17.9 trillion to financial consumers will begin on November 13 for six weeks until December 22 with participation from all financial sectors. Unclaimed financial assets, such as dormant financial accounts, inactive financial accounts (for more than 3 years) and card points (cash back rewards, etc.), amounted to KRW1.6 trillion, KRW13.6 trillion and KRW2.6 trillion, respectively, for a total of KRW17.9 trillion as of the end of June 2023. In this year, the number of financial institutions participating in the campaign has been expanded as the mutual finance sector will also join the joint campaign effort. In addition, this year, consumers will be able to see if there are any remaining balances on their securities investment accounts alongside other types of unclaimed financial assets from checking and savings accounts, insurance benefits or card points. Access to unclaimed financial assets is available on the internet (fine.fss.or.kr) or on the Account Info mobile app. The financial authorities will continue to upgrade the dormant financial account management system to help consumers to more easily and conveniently search and claim their dormant assets. * Please refer to the attached file for details.
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Nov 08, 2023

Government and Related Authorities Hold Meeting on Household Debt Situation

The Financial Services Commission held a meeting with officials from the relevant government ministries and organizations on November 8 and discussed the current household debt situation and various measures to ensure effective management. Regarding the October household loans data announced earlier today, the participants had a positive assessment about the slowing trend of mortgage loans, despite an overall increase in the size of household loans from the previous month. To continue to ensure a stable management of household loans, the authorities agreed on the need to strengthen relevant measures as follows. First, the authorities will bolster rules on debt service ratio (DSR) by closely reviewing the areas that are currently being exempted from DSR regulation and look into ways to gradually expand the application of DSR rule. The stressed DSR limit that is currently being reviewed for application on variable interest rate loans is expected to be announced in December this year with specific details. Second, the authorities will come up with stronger incentive structures that can reward banks to more actively and voluntarily introduce long-term, fixed interest rate mortgage loans by overhauling a relevant administrative guidance. The authorities will also seek to provide more incentives for covered bonds, which serve as a mechanism for banks to fund long-term, fixed rate loans. Third, the authorities will continue to keep close tabs on the trends of household loan growth across all financial sectors. Fourth, the authorities will work with financial sectors to come up with various ways to help reduce the burden of repayment and high interest rate for borrowers, for instance, by offering a temporary exemption from early repayment charges. At the meeting, FSC Secretary General Lee Se-hoon said that as it is difficult to achieve short-term results when it comes to containing household debt, the government will make efforts with a long-term perspective to build an inc
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Nov 08, 2023

Household Loans, October 2023

The outstanding balance of household loans across all financial sectors increased KRW6.3 trillion in October 2023 (preliminary), rising at a faster rate compared to the previous month. * Change (%, y-o-y): +0.1 (Apr 2023), +2.6 (May), +3.2 (Jun), +5.2 (Jul), +6.1 (Aug), +2.4 (Sep), +6.3 (Oct) (By Type) Mortgage loans grew at a somewhat slower rate while other types of loans expanded at a faster pace. Home-backed mortgage loans rose KRW5.2 trillion as nonbanks saw a drop of KRW0.6 trillion and the pace of growth in the banking sector also declined from KRW6.1 trillion a month ago to KRW5.8 trillion. Other types of loans rose KRW1.1 trillion with a low base effect from the previous month (down KRW3.3 trillion). (By Sector) Household loans expanded more rapidly in the banking sector while the pace of decline in the nonbanking sector slowed from a month ago. Banks saw an increase of KRW6.8 trillion of household loans in October, going up from KRW4.8 trillion a month ago. Mortgage loans went up KRW5.8 trillion in the banking sector, mainly led by policy mortgage loans. Other types of loans rose KRW1.0 trillion in the banking sector with credit loans edging up KRW1.2 trillion from a drop of KRW1.3 trillion in the previous month due to seasonal factors such as moving season and demand for IPO subscription. In the nonbanking sector, household loans dropped KRW0.5 trillion overall, showing a slowing pace of decline from the previous month (down KRW2.5 trillion). Specialized credit finance businesses (up KRW0.7 trillion), insurance companies (up KRW0.4 trillion) and savings banks (up KRW0.1 trillion) saw household loans going up, while mutual finance businesses continued to see a decline (down KRW1.7 trillion). Although the accelerated pace of household loan growth in October appears to be caused by a low base effect from a month ago, the financial authorities will continue to closely monitor trends and ensure close management of the growth level. Meanwhile, the authorities p
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Nov 06, 2023

FSC Selects 10 Outstanding Fintech Firms for 'K-Fintech 30'

The Financial Services Commission announced on November 6 that the authorities have selected 10 innovative fintech businesses as the first batch of the K-Fintech 30 program, which aims to provide comprehensive funding and consulting support to a total of 30 outstanding fintech firms selected until 2025. For this round, the selected fintech businesses are Moin, Village Baby, SentBe, CTech, Akros Technologies, Aizen Global, Aims, Fount, Fin2B and Hanpass. At this round of selection for ten businesses, a total of 52 promising fintech firms competed to secure a spot, and the selection results have been drawn from a thorough review on the innovativeness and growth potential of their business models assessed by an expert committee. On average, the selected fintech firms were found to be in operation for 6.6 years, had annual earnings of about KRW5.55 billion, employed 57.1 persons and secured KRW18.0 billion in investment (as of July 2023). The selected fintech businesses will be able to benefit from a series of scale-up assistance programs, including various policy funding support opportunities, relevant financing services offered by individual financial companies, greater opportunities to secure investments and pitch their business ideas through IR events, fintech-focused counseling and support for overseas business expansion. More specifically, they will be eligible to receive various preferential lending benefits offered by policy financial institutions, such as reductions in interest rates and guarantee fees. Individual financial companies are also planning to provide support packages linked with their own fintech lab programs. The Korea Growth Investment Corporation and D-Camp will provide assistance to match innovative fintech businesses with investors and help them with IR opportunities. Lastly, the 10 selected fintech firms can also take advantage of other supports made available, such as consulting support for those applying for the financial sandbox program, as
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Nov 05, 2023

FSC Decides to Ban Stock Short Selling Until June 2024 and Seek Measures to Improve the System

The Financial Services Commission held a meeting on November 5 where the authorities decided to ban all stock short selling in domestic markets (all KOSPI, KOSDAQ and KONEX listed items) effective from Monday, November 6, 2023 until the end of June 2024. With the continuation of high interest rate environment and stagnant growth in the global economy, coupled with geopolitical risks such as the armed conflict between Israel and Hamas, there are growing uncertainties for the Korean economy. In particular, during the second half of this year, stock market volatility in domestic stock markets has risen to much higher levels compared to other major markets overseas,which caused anxiety in the market. Despite a series of measures introduced in the past,recently, the authorities have discovered a number of illegal naked short selling practices conducted by foreign and institutional investors, raising concerns about the fair pricing function of domestic stock markets. Recently, a large-scale naked short selling case involving global investment banks was detected, and an investigation is currently taking place with discovery of additional unlawful activities. As such, the FSC finds that the situation with illegal short selling is very dire as it can erode the fair pricing function of the market and degrade confidence in the market. Therefore, considering the need to preemptively respond to the rising market uncertainties and address concerns about the potential weakening of the markets fair pricing function, and with the practice of illegal naked short selling taking place in a more routine way, the FSC decided to ban short selling on all domestic stock items until the end of June next year. Meanwhile, during the period of banning short selling, the government will work on proactive measures to improve the system in a way that will help to root out illegal short selling activities when short selling resumes thereafter. In this regard, first, the authorities will work on mea
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Nov 01, 2023

FSC Approves Rules Change Intended to Boost Loss Absorbing Capacity of Banks

The Financial Services Commission approved a partial revision bill of the supervisory regulation on banking business at the 19th regular meeting held on November 1. Under the revised rules, the financial regulators will be authorized to ask banks to set aside special reserve for credit loss. The revision also establishes a process of inspecting banks own estimated loss forecasting models. This is a follow-up to the previously announced plan to revamp prudential regulations in the banking sector. First, the rules change will establish a regulatory ground authorizing the financial regulators to ask banks to set aside additional loss reserve when their accumulated level of loan loss provision and loss reserve are deemed to be inadequate. With the lack of regulatory grounds allowing the authorities to make such a request from banks, the Financial Supervisory Service (FSS) had to seek cooperation from banks to bolster their loss provisioning on a voluntary basis so far. However, from now on, the FSC will have an authority to demand banks to set aside additional loss reserve when deemed necessary. Making an actual request from banks to bolster special loss reserve will be carried out through an FSCs formal deliberation process. Second, the rules change will establish a process whereby the authorities are able to inspect banks models for forecasting their estimated loss, so that the authorities can verify the appropriateness of loss provisions prepared by individual banks and have them prepare loss provisions at levels suitable to their estimated future losses. Currently, banks loss provisions are prepared based on their own estimated loss forecasting models. However, the banks own estimates raised concerns about the appropriateness of their estimated losses in the post-pandemic period as their loss calculation was based on the low interest rate environment where delinquency ratio also stayed low. Therefore, from now on, banks will carry out self-inspection on the appropri
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Oct 31, 2023

FSC Proposes Rules Change on the Maximum Level of Credit Extension Allowed for Foreign Subsidiaries

The Financial Services Commission proposed a revision to the supervisory regulation on financial holding companies on October 31, which will be open for public comment from October 31 to November 10, as a follow-up to the previously announced plan to ease rules on overseas subsidiary ownership of financial companies. Under the current rule, financial companies within a holding group are allowed to extend credit to their own subsidiaries at the maximum level of 10 percent of equity capital to each individual subsidiary. The total sum of credit extended to subsidiaries should not exceed 20 percent of equity capital. However, for financial holding companies overseas subsidiaries, which often face challenges in raising funds at an early stage due to low credit background and lack of collateral, this rule on credit extension between financial companies within a holding group has placed restrictions on their ability to raise funds even from their domestic affiliates. Therefore, this revision proposal will increase the maximum level of credit extension allowed by a financial company to its foreign subsidiary within additional 10 percentage points from the current level for a period of maximum three years from the time the foreign subsidiary becomes a part of the holding group. This revision proposal will be available for public comment from October 31 to November 10 and go into effect from January 1, 2024 after a deliberation by the FSC. * Please refer to the attached file for details.
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Oct 19, 2023

Revised Guidelines on Corporate Governance Disclosure

I. Overview and Progress of the System Corporate governance disclosure was introduced to encourage listed companies to voluntarily enhance their corporate transparency. Companies are required to disclose their compliance with the core principles of corporate governance and explain* the reasons for non-compliance based on a Comply or Explain approach. * The guidelines present a generally recommended corporate governance structure, such as those in the G20/OECD Corporate Governance Principles, allowing companies the discretion to select a governance structure that suits them, while requiring them to provide explanations for non-compliance (10 core principles, 28 detailed principles). Corporate governance disclosure was voluntary when it was first introduced in Korea by the Korea Exchange (KRX) in 2017. In 2019, it became mandatory for KOSPI-listed companies with total assets of KRW2 trillion or more, and in 2022, the scope of companies subject to mandatory filing was expanded to KOSPI-listed companies with total assets of KRW1 trillion or more. * A review at the end of 2022 showed that the average compliance rate for key indicators among companies with assets of KRW2 trillion or more significantly improved from 63.5% in 2021 to 66.7% in 2022. This was evaluated as a positive contribution to enhancing corporate transparency. ** [Schedule] (2019) Total assets of KRW2 trillion or more (2022) KRW1 trillion or more (2024) KRW500 billion or more (2026) All KOSPI-listed companies In 2019, the KRX established the guidelines on corporate governance disclosure, providing core principles of corporate governance and detailed reporting standards to ensure that companies provide faithful and comparable information in their disclosures. The guidelines were revised in 2020 and 2022 to reflect market conditions. II. Background and Key Details of the Revision The revision of the guidelines incorporates feedback received during the implementation of corporate governance disclosure in li
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Oct 18, 2023

FSC Holds Meeting to Check Financial Market Situation

The Financial Services Commission held a meeting with the Financial Supervisory Service and industry representatives on October 18 to review financial market situations, potential risk factors and ways to handle them, chaired by FSC Vice Chairman Kim So-young. At the meeting, the authorities shared the same view that there are ongoing risk factors in financial markets due to the possibility of continuing high interest rates caused by a prolonged policy tightening in the U.S. and uncertainties surrounding the Israel-Hamas conflict. Therefore, the FSC, the FSS and financial industry groups agreed to maintain strong communication and cooperation. Despite these downside external risks, Vice Chairman Kim said that the domestic financial market conditions appear to be stable and that it is very unlikely that market situation will abruptly turn unstable as in the previous year since there are less uncertainties about the interest rate expectation in major economies and the financial institutions liquidity and risk management conditions have been improved compared to a year ago. However, as it is always possible that an external shocksuch as the one caused by the Israel-Hamas warcan deepen market anxiety when combined with vulnerabilities in domestic markets, Vice Chairman Kim said that it is necessary to continue to proactively deal with the vulnerable areas in domestic financial markets. With regard to the uncertainties surrounding the Israel-Hamas conflict, Vice Chairman Kim urged financial institutions to stay vigilant and secure a sufficient level of foreign currency liquidity to be adequately prepared. At the meeting, the authorities also discussed ways to avert excessive money moves in the financial sectors in the final three months of the year as competition to win over more deposits toward the end of the year led to market instability last year. In this regard, from September this year, the FSC and the FSS held a series of meetings with the financial sectors to che
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Oct 16, 2023

Taskforce on ESG Finance Holds Meeting to Discuss Ways to Introduce ESG Disclosure System

The Financial Services Commission held the third meeting of the taskforce on promoting ESG finance on October 16. Set up in February this year, the taskforce on ESG finance consists of representatives from businesses, investors, academia, experts and relevant institutions, and is aimed at exploring various policy tasks on the issues encompassing ESG disclosure, assessment and investment. At todays taskforce meeting, the authorities discussed the roadmap for introducing an ESG disclosure system in domestic market. In opening remarks, FSC Vice Chairman Kim So-young spoke about the significance and the underlying principle of introducing an ESG disclosure system in Korea. The following is a summary of Vice Chairman Kims remarks. First, introducing an ESG disclosure system in domestic market is important as this will help to improve domestic firms ability to adapt to the strengthened ESG regulatory environment overseas. As domestic firms are both directly and indirectly affected by global value chains, it is necessary to lay a regulatory foundation to help them adjust to the strengthening of relevant regulations in major overseas markets. Second, introducing an ESG disclosure system can make contributions for a sustainable growth of our economy and industries. This will also help our economy make a transition from the one centered on quantitative growth to the one driven by qualitative growth. Third, introducing an ESG disclosure system will induce domestic firms to seek more technological innovation in line with the shifting global paradigm toward digital transformation and low carbon society. In this regard, establishing rules on ESG disclosure will take into account the standards set forth by major economies and international organizations and give ample considerations for particular characteristics of domestic market and businesses. Second, applying the ESG disclosure rules on businesses will take place in phases, starting with large listed companies first and then
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Oct 16, 2023

Authorities Propose Measures to Improve Pet Insurance Services

The Financial Services Commission introduced a set of proposed measures that will help bring about improvements to pet insurance services on October 16, announced jointly with the relevant government ministries. The measures to improve pet insurance services are intended to address the following(a) ensuring stable operation of pet insurance services based on a reasonable veterinary fee rates system; (b) creating a one-stop service enabling pet owners to sign up for pet insurance, file for insurance claims; manage health conditions of their pets and register their pets all from a single place; (c) improving the structure of pet insurance products and developing new products tailored to the needs of pets and their owners; and (d) allowing insurers specializing in pet insurance to operate in the market. The FSC and the Ministry of Agriculture, Food and Rural Affairs will continue to maintain close communication with the relevant authorities and industries to ensure effective implementation of the proposed measures. In this process, the authorities will particularly work on boosting cooperation between the veterinary and insurance industries in order to bring about improvements and reduce inconveniences in the provision of veterinary and pet insurance services to consumers. * Please refer to the attached file for details.
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Oct 12, 2023

FSC Undertakes Organizational Reshuffle to Bolster Financial Data Security

The Financial Services Commission announced that an internal organizational adjustment creating a division (Cyber and Information Security Division) tasked with overseeing financial data security and information protection will take effect from October 13. Amid an accelerated pace of digital financial innovation taking place with the introduction of advanced technology such as artificial intelligence in financial services, diversification of payment methods and increased utilization of data, there are growing needs for the authorities to strengthen the function of data security and information protection. Thus, the FSC will reorganize the current Electronic Finance Division into Cyber and Information Security Division in order to bolster the management of risks related to financial data security and strengthen financial data protection. The Cyber and Information Security Division will be in charge of overseeing tasks related to electronic finance security, responding to electronic finance-related accidents, preventing fraudulent activities such as vishing, making policies on financial data privacy and protection of personal credit data, and establishing measures for ensuring stability and security in digital finance infrastructures. The task of managing and overseeing electronic financial businessesfor instance, granting approval and registrationthat was previously handled by the Electronic Finance Division will be transferred to and carried out by the Financial Data Policy Division. In seeking to promote digital financial innovation, the FSC expects that this organizational reshuffle creating the Cyber and Information Security Division will help the authorities to more effectively and thoroughly deal with the issues related to ensuring the system stability of digital finance and strengthening financial data protection. * Please refer to the attached file for details.
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