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Apr 10, 2025
- Household Loans, March 2025
- In March 2025, the outstanding balance of household loans across all financial sectors edged up KRW0.4 trillion (preliminary), growing at a slower rate compared with the previous month (up KRW4.2 trillion). (By Type) Home mortgage loans increased KRW3.4 trillion, as the pace of growth decelerated in both the banking (up KRW3.4 trillion up KRW2.2 trillion) and nonbanking (up KRW1.5 trillion up KRW1.1 trillion) sectors from a month ago. Other types of loans dropped KRW3.0 trillion, declining at a faster rate compared with the previous month (down KRW0.7 trillion) as credit loans shifted back lower from a month ago (up KRW0.1 trillion down KRW1.2 trillion). (By Sector) Household loans in the banking sector (up KRW3.3 trillion up KRW1.4 trillion) grew at a slower rate, while shifting back lower in the nonbanking sector (up KRW0.9 trillion down KRW1.0 trillion). In the banking sector, policy-based loans rose at a slower rate compared with the previous month (up KRW2.8 trillion up KRW1.5 trillion), while banks own mortgage loans increased at a slightly faster rate (up KRW0.6 trillion up KRW0.7 trillion). Other types of loans including credit loans dropped at a faster rate from a month ago (down KRW0.2 trillion down KRW0.9 trillion). In the nonbanking sector, household loans grew at a slower rate in the mutual finance sector (up KRW0.8 trillion up KRW0.3 trillion), while declining at a faster rate in the savings banks sector (down KRW0.03 trillion down KRW0.2 trillion). Specialized credit finance businesses saw household loan growth turning back down (up KRW0.3 trillion down KRW0.9 trillion), while insurance companies saw a similar level of drop from the previous month (down KRW0.1 trillion down KRW0.1 trillion). (Assessment) The outstanding balance of household loans in March 2025 rose KRW0.4 trillion, edging up at a slower rate compared with the previous month (up KRW4.2 trillion), which shows a stable trend in the pace of growth. However, the high volume of housing mark
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Mar 27, 2025
- FSC Introduces Plan to Facilitate Entrustment of Banking Services to Improve Consumer Access to Financial Services
- The Financial Services Commission announced a plan to facilitate the entrustment of banking services to improve consumer access to financial services on March 27. Under the plan, the FSC plans to (a) establish a legislative ground for introducing bank agency services and (b) facilitate the use of jointly shared automated teller machines (ATMs) in the banking sector and the small-sum deposit and withdrawal services at convenience stores. With digital transformation rapidly taking place in the financial industry, the number of physical bank branches has been continuously declining.This declining trend has been evident not only in Korea but across the globe as it has become inevitable that online (non-face-to-face) work processes have picked up in a digital era. However, this declining trend in the number of bank branches may restrict financial access to digitally vulnerable consumer groups, such as the elderly. Thus, the proposed plan to facilitate the entrustment of banking services is expected to help address this problem and improve consumer access to financial services. Introducing Bank Agency Services Under the bank agency framework, third-party entities are authorized to provide intrinsic banking services specified under the Banking Act (deposit-taking, lending, money transfer, etc.). This allows consumers to conduct face-to-face banking businesses on-site at locations that are not bank branches. Bank agencies do not engage in all types of banking functions but instead only perform certain types of services requiring face-to-face interactions with customers on behalf of banks, such as consulting, receiving application forms, signing an agreement, etc. Other types of banking functions, such as the screening and approval of applications which require decision-making but no interaction with customers, are still directly performed by banks. Since bank agencies will perform intrinsic banking services, there will be entry restrictions, and only authorized entities wil
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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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Mar 12, 2025
- Household Loans, February 2025
- In February 2025, the outstanding balance of household loans across all financial sectors increased KRW4.3 trillion (preliminary), shifting back up from the drop of KRW0.9 trillion in the previous month. (By Type) Home mortgage loans increased KRW5.0 trillion, growing at a faster rate compared with the previous month (up KRW3.2 trillion). Mortgage loans expanded at a faster rate in the banking sector (up KRW1.7 trillion up KRW3.5 trillion), while growing at a similar level in the nonbanking sector (up KRW1.5 trillion up KRW1.5 trillion). Other types of loans dropped KRW0.6 trillion, declining at a slower rate compared with the previous month (down KRW4.1 trillion), as credit loans shifted back up from a month ago (down KRW1.5 trillion up KRW0.1 trillion). (By Sector) Household loans in the banking sector rose KRW3.3 trillion, turning back up from the decline of KRW0.5 trillion a month ago. Policy-based loans grew at a faster rate (up KRW2.2 trillion up KRW2.9 trillion), while banks own mortgage loans edged up from the decline in the previous month (down KRW0.6 trillion up KRW0.6 trillion). Other types of loans including credit loans declined at a slower rate compared with the previous month (down KRW2.1 trillion down KRW0.2 trillion). In the nonbanking sector, household loans rose KRW1.0 trillion, turning back up from the decline of KRW0.5 trillion a month ago. Mutual finance businesses (down KRW0.1 trillion up KRW0.8 trillion) and specialized credit finance businesses (down KRW0.1 trillion up KRW0.3 trillion) saw household loans shifting back up from the previous month. Savings banks saw a drop of KRW0.02 trillion from the growth of KRW0.2 trillion a month ago. Household loans in the insurance sector dropped at a slower rate compared with the previous month (down KRW0.5 trillion down KRW0.1 trillion). (Assessment) The outstanding balance of household loans across all financial sectors edged up somewhat considerably in February as financial companies have begun to i
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Mar 06, 2025
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Feb 18, 2025
- Revised Rules under FSCMA Pave Way for Resumption of Short Sale Transactions on Schedule from March 31
- The Financial Services Commission announced that 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 February 18. This revision is aimed at upgrading rules on short sale practices. Imposing a Limit on Institutional Investors Stock Repayment Period (Article 208-6) The stock repayment period for institutional investors, which shall be determined by an agreement from both lender and borrower, should not exceed 12 months in total with maximum repayment periods of 90 days for renewal each time. However, in the case of delisting of stocks or suspended trading on the final day of repayment, or when an account-to-account transfer is being restricted, the final day of repayment will be moved to three business days from the day in which the cause of the payment delay is lifted. Introducing Measures Intended to Prevent Naked Short Sale Activities (Article 208-7) Corporate entities that have plans to engage in short sales of listed stocks and securities companies that receive and place short sale orders will be obligated to comply with a set of naked short sale prevention measures. Corporate entities with a net short position balance of 0.01 percent of total issuance volume (excluding net short position balance of less than KRW100 million) or KRW1 billion or more as well as market makers and liquidity providers (institutional investors) will be subject to the following rules. First, they will be required to set up and operate electronic net short position balance management systems to facilitate item-by-item short position balance management and prevent naked short sale activities. Second, they will be required to prepare internal control standards, which should specify details about the role and responsibility of employees, short position balance management system, the recording and bookkeeping of short sale transactions details for at least five years, and the
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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 12, 2025
- Household Loans, January 2025
- In January 2025, the outstanding balance of household loans across all financial sectors declined KRW0.9 trillion (preliminary), turning back down from the growth of KRW2.0 trillion in the previous month. (By Type) Home mortgage loans increased KRW3.3 trillion, growing at a slightly slower rate from the previous month (up KRW3.4 trillion). Mortgage loans expanded at a faster rate in the banking sector (up KRW0.8 trillion up KRW1.7 trillion) but at a slower rate in the nonbanking sector (up KRW2.6 trillion up KRW1.6 trillion). Other types of loans fell KRW4.2 trillion, declining at a faster rate compared with the previous month (down KRW1.4 trillion), as the pace of decline expanded significantly in the nonbanking sector (down KRW0.3 trillion down KRW2.0 trillion). (By Sector) Household loans in the banking sector saw a similar level of decline from the previous month but shifted back down in the nonbanking sector. In January 2025, banks saw a drop of KRW0.4 trillion in household loans, showing a similar level of growth from a month ago (down KRW0.4 trillion). Government-backed policy loans increased at a slower rate (up KRW2.5 trillion up KRW2.3 trillion), while banks own mortgage loans declined at a slower rate (down KRW1.7 trillion down KRW0.6 trillion). Other types of loans including credit loans dropped at a faster rate compared with the previous month (down KRW1.1 trillion down KRW2.1 trillion). In the nonbanking sector, household loans fell KRW0.5 trillion, shifting back down from the growth of KRW2.4 trillion a month ago. Mutual finance businesses (up KRW2.2 trillion down KRW0.2 trillion) and insurance companies (up KRW0.3 trillion down KRW0.5 trillion) saw household loans edging down from increases in the previous month. Specialized credit finance businesses experienced a slower pace of decline (down KRW0.3 trillion down KRW0.01 trillion) and savings banks saw a faster rate of growth (up KRW0.1 trillion up KRW0.2 trillion). (Assessment) The outstanding balan
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Feb 05, 2025
- FSC Grants Final Approval to Nextrade for Operation of ATS Scheduled to be Launched on March 4
- The Financial Services Commission held a regular meeting on February 5 and granted final approval to Nextrade for operating an alternative trading system (ATS). The introduction of an ATS in domestic stock market will officially set off a multiple-exchange and competition-based stock trading system in Korea. As part of capital market reform efforts, the government first established legislative grounds for ATS in 2013 with aims to make capital market more accessible through diversification of stock market infrastructures and improvement in transaction convenience for investors. After granting preliminary approval to Nextrade in July 2023, the FSC and related organizations held a seminar on May 9, 2024 where the authorities introduced a set of measures on ATS operation and integrated market management and oversight plans. Based on diverse opinions discussed at this seminar, Nextrade took steps needed to prepare its organization and set up a trading operation and filed an application to the FSC on November 29, 2024 to obtain final approval for operating ATS. After having an external review conducted by a committee of private sector experts and going through a screening of qualifications by the Financial Supervisory Service (FSS), the FSC decided to grant final approval to Nextrade for the operation of ATS. Expected Changes in Trading Experience with Nextrade Nextrade plans to begin operating from March 4, 2025. Nextrades launch is expected to bring about increased benefits to investors, such as extended trading hours, availability of more diverse order types, and reduction in transaction costs resulting from competition over fees. The market oversight and supervisory framework will also shift to an integrated system to ensure investor protections. I. A new stock trading experience Aside from regular trading hours, which will be identically operated by both the Korea Exchange (KRX) and Nextrade, the ATS will operate pre-market (between 08:00 and 08:50) and after-market
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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 15, 2025
- Household Loans, December 2024
- Household Loans in 2024 In 2024, the outstanding balance of household loans across all financial sectors went up KRW41.6 trillion (preliminary), growing at a faster rate compared with the end of the previous year (up 2.6 percent). * Change (in trillion KRW, y-o-y): +112.3 (2020), +107.5 (2021), -8.8 (2022), +10.1 (2023), +41.6 (2024P) (By Type) Mortgage loans increased at a faster rate compared with the previous year (up KRW45.1 trillion up KRW57.1) led by the banking sector. Other types of loans fell at a slower rate over the same period (down KRW35.0 trillion down KRW15.5). (By Sector) Household loans grew at a faster rate in the banking sector compared with the previous year (up KRW37.1 trillion up KRW46.2 trillion), while declining at a slower rate in the nonbanking sector (down KRW27.0 trillion down KRW4.6 trillion). Mortgage loan growth from banks stayed at a similar level from a year ago (up KRW51.6 trillion up KRW52.1 trillion). Other types of loans from banks continued to decline but at a slower rate compared with the previous year (down KRW14.5 trillion down KRW5.9 trillion). Household loans in the nonbanking sector rose in the specialized credit finance (up KRW3.2 trillion), savings banks (up KRW1.5 trillion), and insurance (up KRW0.5 trillion) sectors, but declined in the mutual finance (down KRW9.8 trillion) sector. Household Loans in December 2024 In December 2024, the outstanding balance of household loans across all financial sectors rose KRW2.0 trillion (preliminary), growing at a slower rate compared with the previous month (up KRW5.0 trillion). (By Type) In December, mortgage loans from banks rose at a slower rate compared with the previous month (up KRW4.0 trillion up KRW3.4 trillion). Other types of loans turned back down from the growth a month ago (up KRW1.0 trillion down KRW1.4 trillion). (By Sector) Household loans shifted back lower in the banking sector from the growth in the previous month (up KRW1.9 trillion down KRW0.4 trillion), but in
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Dec 17, 2024
- Revised Rules on Credit Information Businesses to Lower Entry Barrier
- The Financial Services Commission announced that a partial revision bill for the Credit Information Use and Protection Act has been approved by the government at the cabinet meeting held on December 17. The revision makes the entry barrier more reasonable for business credit rating service providers, improves the quality of business credit evaluation models by making them subject to a periodic review by an external verification committee, and incorporates into the law the current preliminary approval system for credit information businesses, which has been operating as part of a subordinate regulation. First, the revision bill abolishes the current investment requirement for financial companies toward business credit rating service providers. Currently, corporate entities that have secured at least 50 percent of investment from financial companies were allowed to apply for licenses to operate as business credit rating service providers. However, considering the need to promote the entry of more businesses that are equipped with various types of business data into the business credit rating service sector, stock companies established as prescribed under the Commercial Act will be newly authorized to operate as business credit rating service providers. Second, the revision bill will make business credit evaluation models subject to a periodic review by an external verification committee to regularly check their appropriateness and improve quality management. Under the current system, credit evaluation models for individuals and sole proprietors are subject to a periodic review performed by the verification committee operated by Korea Credit Information Services. However, an external review mechanism has been lacking for business credit evaluation models. Thus, this revision bill makes them subject to an external review, which will help to improve the quality management over credit evaluation models. Third, the revision bill brings into the law the current preliminary
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Dec 16, 2024
- Financial Authorities of Korea and Japan Hold 8th Shuttle Meeting
- The Financial Services Commission and the Financial Supervisory Service announced that the 8thKorea-Japan shuttle meeting of financial authorities of Korea and Japan is held on December 16-17 in Tokyo, Japan. Joint Press Release of the Eighth Korea-Japan Shuttle Meeting of Financial Services Commission and Financial Supervisory Service of the Republic of Korea and Financial Services Agency of Japan (Tokyo, Japan, September 16, 2024) 1. The Eighth Japan-Korea Shuttle Meeting was held by the Financial Services Commission (FSC) and the Financial Supervisory Service (FSS) of the Republic of Korea and the Financial Services Agency (FSA) of Japan in Tokyo, Japan, on December 16. 2. At the Shuttle Meeting, Mr. LEE Bokhyun, Governor of the FSS of the Republic of Korea and Mr. ITO Hideki, Commissioner of the FSA of Japan exchanged views on the global economic and financial situation and its impact on Korean and Japanese financial institutions. They also exchanged views on the recent developments in their respective markets. 3. Commissioner Ito welcomed Governor Lees visit to Japan, recognizing the importance of maintaining timely and close communication between the financial authorities of Japan and Korea for the stability of the financial market in the East Asian region. 4. Governor Lee reaffirmed the importance of both countries cooperation and coordination in enhancing financial stability in the region, introducing the Korean authorities measures to stabilize the financial markets in the wake of the recent market fluctuations, as well as their next steps to address them going forward. 5. In view of the coming 60th anniversary of the normalization of relations between the Republic of Korea and Japan in 2025, they reaffirmed that the authorities of both countries will continue to work together to respond effectively to common opportunities and challenges in the financial sector, anticipating that this shuttle meeting will continue to provide an important platform for this e
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Dec 12, 2024
- Authorities Introduce Administrative Guidelines on Green Finance for Application on K-taxonomy
- The Financial Services Commission, the Ministry of Environment, and the Financial Supervisory Service announced on December 12 the establishment of administrative guidelines on green finance for application on the green economic activities specified by K-taxonomy. In 2021, the Ministry of Environment established K-taxonomy to provide clear standards on eco-friendly and green economic activities, and in 2022, the Financial Services Commission and the environment ministry introduced the guidelines on green bonds to facilitate the application of K-taxonomy in the financial sector. In this regard, the administrative guidelines on green finance being introduced today provide specific criteria for determining the appropriateness of financing green economic activities for financial companies, thereby creating conditions to promote green financing. In preparing for the administrative guidelines, financial authorities examined overseas cases, sought consultations from experts, collected opinions from taskforce meetings on climate finance, and conducted pilot tests. The administrative guidelines contain specific criteria for determining green economic activities when financial companies provide green finance to businesses, and address issues regarding the prevention of greenwashing and internal control of financial companies. Key details of the administrative guidelines are as follows. First, a clear definition on green finance has been established. Under the administrative guidelines, green finance refers to the financing of an economic activity that meets the standards specified by K-taxonomy with appropriate internal control procedures. This clarification will help to resolve uncertainties regarding greenwashing for financial companies and encourage them to more actively provide green finance. Second, internal control standards have been established for financial companies regarding their handling of green finance related works, detailing who should be in charge of determi
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Dec 11, 2024
- Household Loans, November 2024
- In November 2024, the outstanding balance of household loans across all financial sectors rose KRW5.1 trillion (preliminary), growing at a slower pace compared with the previous month (up KRW6.5 trillion). (By Type) Home-backed mortgage loans grew KRW4.1 trillion across all financial sectors, rising at a slower pace compared with the previous month (up KRW5.5 trillion). Mortgage loans in the banking sector continued to grow at a slow pace (up KRW3.6 trillion up KRW1.5 trillion). Other types of loans increased KRW1.1 trillion overall, keeping the same level of growth from a month ago. Banks saw a small increase in unsecured loans (up KRW0.3 trillion up KRW0.4 trillion), while nonbanks saw a slight decline (up KRW0.8 trillion up KRW0.6 trillion). (By Sector) The pace of household loan growth slowed down in the banking sector while expanding in the nonbanking sector month-on-month. In November, banks saw an increase of KRW1.9 trillion in household loans, a drop from the increase of KRW3.8 trillion a month ago. The growth of policy-based loans expanded (up KRW2.0 trillion up KRW2.3 trillion) due to continuing demand for government-backed mortgage loans, but the issuance of banks own mortgage loans shifted down (up KRW1.5 trillion down KRW0.8 trillion). Other types of loans including credit loans in the banking sector rose at a slightly faster pace (up KRW0.3 trillion up KRW0.4 trillion) compared with the previous month. Nonbanks saw an increase of KRW3.2 trillion in household loans, growing at a faster pace from the previous month (up KRW2.7 trillion). Mortgage loans from nonbanks expanded at a faster pace (up KRW1.9 trillion up KRW2.6 trillion), but the pace of grow decelerated for other types of loans (up KRW0.8 trillion up KRW0.6 trillion). Mutual finance businesses (up KRW1.6 trillion), insurance companies (up KRW0.6 trillion), specialized credit finance businesses (up KRW0.6 trillion), and savings banks (up KRW0.4 trillion) all saw increases in household loans. (As
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Dec 03, 2024
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Nov 19, 2024
- Rule Changes on Corporate Mergers and Acquisitions Approved by the Government
- The Financial Services Commission announced that a revision bill for the Enforcement Decree of the Financial Investment Services and Capital Markets Act (FSCMA) intended to upgrade rules on corporate mergers and acquisitions (MAs) was approved by the government at the cabinet meeting held on November 19. The revised Enforcement Decree addresses the following(a) improving rules on determining merger prices when MAs take place between nonaffiliated business entities, (b) strengthening disclosure duties, and (c) revamping rules on the external evaluation process. First, the revised Enforcement Decree will improve rules on calculating and determining merger prices when MAs take place between nonaffiliated business entities. Previously, the Enforcement Decree had a provision directly regulating specific methods for calculating merger prices for MAs taking place between both affiliated companies and nonaffiliated companies. This rule may have acted as a barrier for companies when seeking corporate restructuring based on free negotiations. Therefore, the revised Enforcement Decree will remove the calculation method for merger prices for MAs taking place between nonaffiliated business entities, which will also help to enhance regulatory consistency with global standards. Second, the revised Enforcement Decree will bring about improvements to the external evaluation system by obligating companies to go through an external evaluation process when MAs take place between nonaffiliated business entities. For MAs between affiliated entities, companies will need to obtain consent from auditors (or audit committees) when selecting an external evaluation agency. In addition, the revised rules establish a code of conduct on quality management for external evaluation agencies to guarantee the maintenance of autonomy, objectivity, and fairness in performing functions related to MAs and address issues related to conflicts of interest. The revised Enforcement Decree will also require eva
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Nov 13, 2024
- Korea-Poland MOU on Banking Supervision Signed to Promote Overseas Expansion of Korean Financial Services
- Chairman Kim Byoung Hwan of the Financial Services Commission met with Jacek Jastrzebski, Chair of the Board of the Polish Financial Supervision Authority (KNF) at his office in Seoul Government Complex on November 13 where the two sides signed a memorandum of understanding (MOU) on banking supervision. This marks the first such visit to Korea by Chair of the Board of the Polish Financial Supervision Authority (KNF). Since the establishment of diplomatic ties in 1989, Korean companies have continued to expand their business presence in Poland. As of 2023, the number of Korean companies operating in Poland reached about 370 with the volume of investment standing at about KRW6 billion in cumulative terms and that of annual trade reaching about KRW9 billion. However, there still exist no Korean financial companies operating in Poland. As the financing needs and demand from Korean companies have been growing in local market, there has been growing interest among Korean financial companies to expand their presence in the Polish market. Following the previously held summit meetings between Korea and Poland (in July 2023 and October 2024), bilateral cooperation has been strengthened in the areas of defense industry, nuclear power, infrastructure, and advanced technologies, and it is highly anticipated that mutual exchange in economic and financial sectors will also accelerate. Against this backdrop, the visit by the Polish Financial Supervision Authority (KNF) along with the Polish banking sector delegation lays a foundation to boost bilateral exchange of banking businesses. Korea-Poland MOU on banking supervision At the meeting with Chair Jacek Jastrzebski of the Polish Financial Supervision Authority (KNF), FSC Chairman Kim Byoung Hwan showed strong commitment to boost cooperation going forward and talked about the significance of the progress made this year in enhancing financial cooperation between the two countries with the shuttle meetings held between chief financia
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Nov 11, 2024
- Household Loans, October 2024
- In October 2024, the outstanding balance of household loans across all financial sectors rose KRW6.6 trillion (preliminary), growing at a faster pace compared with the previous month (up KRW5.3 trillion). (By Type) Home-backed mortgage loans rose KRW5.5 trillion across all financial sectors, increasing at a slower pace compared with the previous month (up KRW6.8 trillion). Mortgage loans in the banking sector continued to rise at a slower pace (up KRW6.1 trillion up KRW3.6 trillion). Other types of loans increased KRW1.1 trillion overall, edging back up in both the banking (down KRW0.5 trillion up KRW0.3 trillion) and nonbanking (down KRW0.1 trillion up KRW0.8 trillion) sectors. (By Sector) The pace of household loan growth compared with the previous month decelerated in the banking sector while shifting back up in the nonbanking sector. In October, banks saw an increase of KRW3.9 trillion in household loans, a slowdown from the increase of KRW5.6 trillion a month ago. The growth of policy-based loans stayed at a similar level (up KRW2.1 trillion), but banks own mortgage loan issuance grew at a slower pace (up KRW4.0 trillion up KRW1.5 trillion) due to the self-regulatory move to tighten household loan issuance in the banking sector. Other types of loans including credit loans turned back up from a month ago (down KRW0.5 trillion up KRW0.3 trillion) due to the effects of demand for IPO subscriptions. The nonbanking sector saw an increase of KRW2.7 trillion in household loans, which expanded at a faster pace compared with the previous month (down KRW0.3 trillion). Mortgage loans in the nonbanking sector went up KRW1.9 trillion from the rise of KRW0.7 trillion a month ago led by group lending for new apartment subscriptions. Other types of loans increased KRW0.8 trillion from the decline of KRW1.0 trillion a month ago led by credit card and insurance policy-based loans. Mutual finance businesses (up KRW0.9 trillion), specialized credit finance businesses (up KRW0.9 tr
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Oct 31, 2024
- FSC Vice Chairman Visits Germany and Lithuania to Support Overseas Expansion of Korean Financial Services
- Vice Chairman Kim Soyoung of the Financial Services Commission visited Frankfurt, Germany and Vilnius, Lithuania from October 28 to November 1 in order to seek stronger financial cooperation with the European countries following bilateral summit meetings held in 2023. Meeting with ECB Supervisory Board Member On October 29, Vice Chairman Kim met with the European Central Bank (ECB)s supervisory board member Patrick Montagner to elicit consensus on the scope of cooperation prescribed in the draft memorandum of understanding (MOU) on banking supervision, which is expected to be signed by the end of this year. The agreed upon draft MOU contains provisions detailing cooperation and information exchange on banking supervision between the FSC and the FSS (Financial Supervisory Service) of Korea and the ECB regarding financial companies license application, appointment of directors, sanctions, and recovery and resolution plans (RRPs) upon request by the counterparty. This MOU is expected to help improve the crisis response capacity of both parties and enhance banking supervision through RRPs. After the fine-tuning of the draft MOU, Vice Chairman Kim and Mr. Montagner held talks on policy issues regarding sustainable finance and the introduction of artificial intelligence (AI) in the financial industry. On sustainable finance, both sides had opportunities to share their policy response and how they are dealing with the issue, for instance through climate risk stress test, etc. With regard to the advent of AI technology and its convergence with financial services, both sides agreed on the importance of international cooperation to build a regulatory framework that can help to maximize opportunities while minimizing risks presented by advance technologies. Meeting with Korean financial companies operating in Germany Vice Chairman Kim also held a meeting with a group of Korean financial companies doing business in Germany and had talks on local industry trend, operating condit
