Financial stability is a prerequisite to innovation and inclusive finance policies. FSC maintains close market monitoring for any signs of market volatility and works to ensure stability in the financial markets. There are risk factors originating from abroad and from within. FSC focuses on making our economy more resilient from external shocks, such as a disruption in the global supply chain, and supporting Korea’s material, component and equipment industries to help boost their global competitiveness. Internally, FSC is closely monitoring the trends in household debt and seeking reforms to corporate restructuring in order to prevent domestic risk factors from turning into systemic risks. Policies aimed at increasing financial stability also include enhancing fairness in the financial markets by introducing a comprehensive legal framework for the supervision of financial conglomerates, improving market discipline and promoting transparency in corporate disclosure and accounting practices.
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Mar 13, 2020
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Mar 12, 2020
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Mar 12, 2020
- Vice Chairman Holds Meeting to Assess Progress of COVID-19 Financing Support
- FSC Vice Chairman Sohn Byungdoo convened a meeting on March 12, 2020 to assess the implementation of the financing support for the SMEs and small merchants hit by the COVID-19 outbreak.PROGRESSBetween February 7 and March 10, a total of KRW4.6346 trillion (60,813 individual cases) in loans and guarantees as well as loan and guarantee extensions were provided to the SMEs, small merchants and self-employed business owners whose businesses have been hit by the spread of COVID-19► Financing by type: KRW 2.0633 trillion (32,309 cases) in new loans, KRW 2.406 trillion (25,393 cases) in maturity extensions and deferred payments, and KRW 165.3 billion (3,111 cases) in export-import credit finance, discounted interest rates and late fees and deferment of interest payment► Financing by industry: KRW703.9 billion to wholesale businesses, KRW499.8 billion to restaurant businesses and KRW485.3 billion to retail businesses► Financing by provider: KRW2.7892 trillion (42,693 cases) by policy banks, KRW1.8454 trillion (18,120 cases) by private financial institutions FURTHER PLANSThe FSC will work to maintain stability in the financial system amid the spread of COVID-19. As for call centers, the group training will be refrained. While continuing to improve the business continuity plans, the government will encourage financial institutions to draw up additional response plans to help contain the spread of COVID-19.* Please refer to the attached PDF for details.
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Mar 10, 2020
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Mar 10, 2020
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Mar 05, 2020
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Mar 03, 2020
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Feb 28, 2020
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Feb 28, 2020
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Feb 27, 2020
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Feb 21, 2020
- Government to Closely Monitor Business Needs amid COVID-19 Outbreak
- FSC Vice Chairman Sohn Byungdoo convened a meeting on February 21, 2020 to assess the implementation of the financing support intended to help SMEs and small merchants amid the COVID-19 outbreak.PROGRESSBetween February 7 and 18, a total of KRW322.8 billion (5,683 individual cases) in loans and guarantees as well as loan and guarantee extensions were provided to the SMEs, small merchants and self-employed business owners whose businesses have been hit by the spread of COVID-19.► SME financing by policy banks: KRW16.2 billion in new loans, KRW31.96 billion in loan extensions, KRW25.48 billion in new guarantees and KRW62.1 billion in guarantee extensions► Small merchant financing by policy banks: KRW1.34 billion in new loans, KRW1.53 billion in new guarantees and KRW91.6 in guarantee extensions► Local banks provided KRW86.45 billion (179 cases) in total: KRW17.14 billion in new loans and KRW42.88 billion in maturity extensions and deferred payments► For small businesses, credit card companies also provided about KRW4.47 billion in discounted interest rates and late fees, and about KRW380 million in deferred payment plans.FURTHER PLANSThe government will continue to review how the COVID-19 financing support measures are being provided to the businesses in need and ensure a prompt delivery to the affected companies.While closely monitoring the business needs, the government will draw up additional measures when necessary.* Please refer to the attached PDF for details.
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Feb 14, 2020
- Measures to Improve Regulatory Framework on Hedge Funds
- The Financial Services Commission and the Financial Supervisory Service unveiled on February 14, 2020 an evaluation of hedge fund market and the measures to improve its regulatory framework. The measures are intended to ensure the autonomy of private fund management while addressing regulatory inadequacy and vulnerabilities found in the assessment by introducing a minimum necessary level of regulations.BACKGROUNDHedge funds play an important role in providing venture capital in startup investment ecosystem from business setup to scale-up to exit. However, the recent misselling, inadequate liquidity management and unlawful and/or unfair activities in the market have shown the necessity to improve the regulatory framework.Against this backdrop, the government unveiled on November 14 last year the Measures to Strengthen Investor Protection with High-risk Investment Products, which a) prevented sales of public offering funds in the form of private funds, b) placed stronger investor protection for ‘highly complex investment products,’ c) raised entry requirements for retail investors from KRW100 million to KRW300 million, and d) tightened regulation standards for financial companies selling OEM funds.From November 2019 to January 2020, the government conducted a review on the hedge fund market to assess potential risks and vulnerabilities. The assessment was made on 52 asset management companies and 1,786 private funds worth KRW 22.7 trillion. Most hedge funds did not show risky operation methods or investment structures unlike the large scale suspension of redemption cases surfaced recently.Based on this market review, the government has prepared the following measures in order to strengthen investor protection and ensure credibility in the market.KEY MEASURESI. ENHANCE RISK MANAGEMENT BASED ON MARKET DISCIPLINESThe government will work to establish a foundation in which different market participants and players can provide a supervisory role and “checks and balan
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Feb 13, 2020
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Feb 07, 2020
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Feb 03, 2020
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Jan 28, 2020
- Government Bolsters Market Monitoring amid Coronavirus Outbreak
- FSC Vice Chairman Sohn Byungdoo convened a meeting on January 28, 2020 to assess the impact of the spread of coronavirus on the domestic and global financial markets. Amid rising concerns over economic and financial markets at home and abroad, the Korean government has put in place a response system, working on preventive measures and monitoring its impact on our economy.The following is a summary of Vice Chairman Sohn’s remarks:The financial markets in Korea remained stable until mid-January following the conclusion of the first phase deal between the US and China over their trade conflicts and due to eased tension in the Middle East. However, with the spread of the new coronavirus, volatility increased last week.Today, KOSPI fell 3.1 percent while the won-dollar exchange rate rose 0.7 percent (up 8.0 won).Based on our past experiences with the SARS (severe acute respiratory syndrome) outbreak in 2003, the avian influenza in 2009, and the Middle East respiratory syndrome (MERS) in 2015, the impact of the new coronavirus outbreak on domestic financial markets will depend on how extensive it spreads in Korea.The Korean financial markets may experience rising volatilities for a while due to increased appetite for risk-free assets.However, Korea’s external soundness remains solid as its foreign exchange reserves (USD408.8 billion by the end of 2019) and net foreign assets in debt instruments (USD479.8 billion by end of Q3 2019) increased to record high levels.In order to stabilize financial markets, the government should bolster the 24-hour market monitoring system and be prepared for any volatility. The government should also work to provide financial assistance to the industries that may be heavily affected by the epidemic, such as the tourism industry.* Please refer to the attached PDF for details.
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Jan 21, 2020
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Jan 20, 2020
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Jan 08, 2020
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Dec 16, 2019
