Press Releases - Financial Services Commission

Press Releases

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Mar 12, 2026

Revised Rules on Telecom-based Financial Fraud to Bolster Response against Vishing Scams Involving Virtual Assets

The Financial Services Commission announced that a revision bill for the Special Act on the Prevention of Loss Caused by Telecommunications-based Financial Fraud and Refund for Loss (the Act hereinafter) was passed by the National Assembly at the plenary session held on March 12. Background With vishing scams becoming more sophisticated, there is a growing number of cases in which scammers are stealing virtual assets from victims directly or using virtual assets for laundering the money stolen from victims. However, despite the fact that virtual asset exchange service providers are being exploited in such criminal activities, there was no legal foundation so far to effectively cut off the flow of criminal proceeds or provide remedies for victims. In this regard, the revised Act establishes a regulatory foundation to close the loophole for virtual asset exchange service providers and bolster remedies for vishing related loss and damage. Key Revision Details First, virtual asset exchange service providers will be required to have the same level of vishing prevention and damage and loss relief measures in place as in the case with financial companies. Unlike banks or securities companies that are required by law to regularly monitor suspicious transactions activities related to vishing scams, which allow them to take preventive measures, virtual asset exchange service providers are not obligated to follow such steps under the existing regulatory framework, which prevented them from taking swift actions in response to vishing scams. As such, the revised Act will make virtual asset exchange service providers subject to the same level of anti-vishing and damage and loss relief duty that is currently in place for financial companies. In this regard, virtual asset exchange service providers will be required to verify the purpose of virtual asset transactions, monitor suspicious transactions related to vishing scams, freeze account activities when suspected to be involved in
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Mar 11, 2026

Household Loans, February 2026

In February 2026, the outstanding balance of household loans across all financial sectors increased KRW2.9 trillion (preliminary), growing at a faster pace compared with the previous month (up KRW1.4 trillion). (By Type) Home-backed mortgage loans rose KRW4.2 trillion, growing at a faster pace compared with the previous month (up KRW3.0 trillion). Mortgage loans turned back up in the banking sector (down KRW0.6 trillion up KRW0.4 trillion) and expanded at a slightly faster pace in the nonbanking sector (up KRW3.6 trillion up KRW3.8 trillion). Other types of loans edged down KRW1.2 trillion, declining at a slower pace compared with the previous month (down KRW1.6 trillion), as credit loans dropped at a slower pace (down KRW1.1 trillion down KRW1.0 trillion). (By Sector) In February 2026, household loans in the banking sector saw a drop of KRW0.3 trillion, declining at a slower pace compared with the previous month (down KRW1.0 trillion). Banks own mortgage loan products fell at a slower pace (down KRW1.7 trillion down KRW1.1 trillion), while policy-based mortgage loans rose at a faster pace (up KRW1.1 trillion up KRW1.5 trillion). Other types of loans including credit loans declined at a faster pace (down KRW0.4 trillion down KRW0.7 trillion). In the nonbanking sector, household loans rose KRW3.3 trillion, growing at an expanded level from a month ago (up KRW2.5 trillion). Mutual finance businesses (up KRW2.3 trillion up KRW3.1 trillion) saw household loans edging up more rapidly, while insurance companies (down KRW0.2 trillion up KRW0.2 trillion) and specialized credit finance businesses (down KRW0.01 trillion up KRW0.1 trillion) saw household loans growing back up from declines seen a month ago. Savings banks (up KRW0.3 trillion down KRW0.1 trillion) saw household loans edging back down from an increase seen in the previous month. (Assessment) In February 2026, the outstanding balance of household loans edged up KRW2.9 trillion led by an expanded level of growth se
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Mar 06, 2026

FSC Provides Statutory Interpretations to Support Shareholder Activities of Institutional Investors

The Financial Services Commission provided statutory interpretations on the large shareholding reporting rule (so-called 5% rule) on March 6 to facilitate shareholder activities of institutional investors ahead of the end of March season of annual general meeting of shareholders in Korea. Background Shareholder activities of institutional investors to exercise fiduciary duties according to the stewardship code and help enhance corporate value have been growing in importance as part of bringing about further advancement to the capital market. Under the current capital market law, shareholding of 5 percent or more or a change of 1 percent or more thereafter and changes in the shareholding purpose should be reported to the FSC and the Korea Exchange (KRX) within five days of such changes taking place. However, when the purpose of shareholding is not influencing corporate management, there are eased disclosure procedures (longer deadline and abridged form for reporting) available. In this regard, there have been legal uncertainties concerning what types of shareholder activities constitute the purpose of influencing corporate management, and there have been requests from institutional investors to provide clearer interpretations on this. Key Details a) Improving the culture of general shareholder meeting A statutory interpretation is provided to clearly indicate that institutional investors shareholder activities aimed at improving the culture of general shareholder meetings, such as making a demand for early disclosure of agenda items and requesting detailed explanations on certain issues, do not constitute the purpose of influencing corporate management, insofar as the activities are not aimed at bringing about changes to the articles of incorporation. In other countries, general shareholder meetings are often used as a venue where companies provide detailed explanations on agenda items to their shareholders and have active engagement and discussions for communication
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Mar 05, 2026

Revised Rules on BDCs for Promoting Investment in Venture Businesses to Take Effect from March 17

The Financial Services Commission announced that the legislative and regulatory revisionsprocessintended to establish rules on business development companies (BDCs)has been completedon March5. Under the auspices of the Financial Investment Services and Capital Markets Act (FSCMA), the revised rules to the Enforcement Decree of the FSCMA, the supervisory regulations on financial investment business, and the KOSDAQ market regulations of the Korea Exchange (KRX) will take effect from March 17, 2026, along with the revised FSCMA. Key Revision Details Rules regarding the operation of BDCs BDCs will be required to invest at least 60 percent of total assets in their primary investment targets, such as unlisted startups or venture businesses, venture investment associations, and KONEX-listed or KOSDAQ-listed businesses. In order to promote reinvestments in the venture investment market after the recovery of initial investment, BDCs will be allowed to invest in venture associations and the KOSDAQ-listed companies that have market capitalization of up to KRW200 billion (which constitutes about 75 percent of all KOSDAQ-listed companies). However, to help prevent the potential of concentration toward certain sectors, only up to 30 percent of investments made in venture associations and KOSDAQ-listed companies each will be counted toward the calculation of the minimum investment requirement of 60 percent. Investments can take the form of either purchasing shares or lending money. Share purchases will be limited to stocks and equity-linked bonds (convertible bonds, exchangeable bonds, and bonds with warrants). The proportion of money lending to the total amount of investments on primary investment targets should be limited to maximum 40 percent. In addition, the establishment of internal control mechanisms is required to ensure the appropriateness of money lending and the assessment and management of credit risks. BDCs will be required to invest at least 10 percent of total asset
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Mar 04, 2026

FSC Launches Private-public Joint Consultative Body on Security Token and Holds Kick-off Meeting

The Financial Services Commission launched a private-public joint consultative body on security token and held a kick-off meeting on March 4. The amended legislation on security token (revisions to the Act on Electronic Registration of Stocks and Bonds and the Financial Investment Services and Capital Markets Act), which was approved by the National Assembly in January this year, is scheduled to take effect from February 4, 2027, after making updates to subordinate statutes and setting up relevant infrastructures. In this regard, the joint consultative body on security token will play a crucial role in designing an overall framework of rules and infrastructures on security token. A Summary of Remarks by FSC Chairman When considering the development of blockchain technology, security tokens should not be taken as a one-off trend but a significant pillar reinforcing the structural convergence of capital markets. In this regard, three key policy directions on security token are proposed. First, there should be an innovative digital finance ecosystem equipped with both diversity and scalability. With the emergence of non-traditional types of securities, which allow investors to invest in particular types of underlying assets and/or projects based on individual interests, such as music, art, livestock, and real estate, capital markets horizon has been expanded. With the use of blockchain-based smart contracts, security tokens are expected to more efficiently serve the demand of various types of atypical securities rights tailored for different individual needs. To facilitate the introduction of diverse and innovative types of security tokens, the joint consultative body will work on establishing relevant rules on the issuance, circulation, and disclosure of security tokens. Second, there should be an investor protection framework tailored to the specific characteristics of blockchain technology. Security tokens are by their intrinsic quality securities, and investor prot
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Mar 03, 2026

FSC Holds Meeting to Monitor Financial Market Conditions over Middle East Situation

Chairman Lee Eog-weon of the Financial Services Commission presided over a meeting with officials from related authorities and financial institutions to check financial market conditions over the Middle East situation on March 3. At the meeting, officials went over the economic and financial market conditions ahead of the market opening of the day amid expanding geopolitical uncertainty in the Middle East region. Officials also discussed ways to provide assistance to the small- and medium-sized exporters engaged in business operation in the conflict affected region. The sharp increase seen in international oil prices on the previous day appear to have subsided somewhat, and major stock markets are mostly trending lower or staying flat, while the price of gold and the value of USD are strengthening due to higher demand for safe assets. Since financial markets may experience expanded volatility depending on the developments of the Middle East situation with a potential impact on the real economy, officials shared the same view on the need to continue to stay vigilant and ensure close cooperation and concerted responses. Despite deepening uncertainty surrounding the Middle East, FSC Chairman Lee said that the Korean economy and its financial markets are equipped with strong fundamentals and that the government has sufficient policy capacity to deal with external uncertainties. In this regard, Chairman Lee said that it is important for market participants to remain confident and avoid hasty decisions or movements. Since ensuring stability in the economy and financial markets is a top priority, the government, the Bank of Korea, and the Financial Supervisory Service will maintain close coordination to monitor market situations and ensure prompt implementation of contingency plans (market stabilization programs worth KRW100 trillion-plus) when it becomes necessary. Additionally, to prevent a potential of unfair trading activities spreading on heightened market uncertainti
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Feb 25, 2026

FSC Abolishes Caps on Whistleblower Rewards for Market Manipulation and Accounting Fraud

The Financial Services Commission (FSC) will overhaul its whistleblower reward program to strengthen incentives for insiders to report unfair trading and accounting fraud. Under the current framework, payouts are capped at KRW 3 billion for unfair trading and KRW 1 billion for accounting fraud levels widely viewed as insufficient to encourage insiders to come forward. In addition, rewards are unavailable if reports are filed with other enforcement authorities, such as the National Police Agency. To sharpen incentives, the FSC will: (i) abolish all caps on whistleblower rewards; (ii) provide rewards of up to 30% of recovered illicit gains or penalties; and (iii) make whistleblowers eligible for rewards regardless of which government agency first receives the report. Key Measures 1. Uncapped Whistleblower Rewards for Market Manipulation and Accounting Fraud Under the current framework, even when a tip leads to the recovery of billions of won in illicit gains, rewards remain subject to fixed caps. Given that sophisticated offenses such as market manipulation and accounting fraud are often difficult to detect without insider information, the existing limits fail to adequately compensate informants for the risks involved, thereby weakening reporting incentives. The FSC will therefore abolish reward caps through amendments to the Enforcement Decrees under the Financial Investment Services and Capital Markets Act (FSCMA) and the External Audit Act. The revisions reaffirm the governments commitment to ensuring that market manipulation and accounting fraud are detected without exception and subject to severe sanctions. 2. Rewards of Up to 30% of Recovered Gains or Penalties The current reward formula is complex, making it difficult for potential whistleblowers to estimate in advance how much they may receive. In addition, the bracket-based structure has resulted in reward payments that are not commensurate with the amount of recovered illicit gains. The revised framework wi
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Feb 24, 2026

Revised Rule to Require High Dividend Companies to Disclose Their Qualifications through Corporate Value-up Plans

With the revised Act on Restriction on Special Cases Concerning Taxation (the Act hereinafter) taking effect from January 1, 2026, a separate taxation rule has been adopted on income generated from stock dividends. Under the revised Act, high dividend companies will need to disclose the information demonstrating that they have satisfied all the requirements prescribed under the revised Act to qualify for special cases in a manner specified by a presidential decree. In this regard, a revision bill to the Enforcement Decree of the Act was approved by the government at the cabinet meeting held on February 24, 2026, stipulating that high dividend companies should follow the rules concerning the disclosure of corporate value-up plans. Method of Disclosure and Provision of Assistance At the end of each fiscal year-end closing, high dividend companies will need to file disclosures of corporate value-up plans with the Korea Exchange (KRX) with contents detailing that they have satisfied all the requirementsto qualify for special cases concerning taxation under the Act until one day after the day that dividends are declared at the annual general meeting of shareholders (AGM). Since the disclosure of corporate value-up plan is prepared by companies on their own based on the individual characteristics of each listed company, specific disclosure contentsother than the required fields on dividends, as well as the decision regarding which criteria to incorporate and in what length will be left up to companies in principle. In particular, considering that this is the first year wherein high dividend companies will be filing disclosures of corporate value-up plans for indicating their qualifications for special cases concerning taxation, an abridged form of disclosure will be permitted containing only key disclosure contents, such as qualifications for special cases concerning taxation, return on equity (ROE), dividend payout ratio target, and capital expenditure (CapEx) target. To
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Feb 23, 2026

FSC Introduces Measures to Promote Sound Development of Mutual Savings Banks

Chairman Lee Eog-weon of the Financial Services Commission held a meeting with the CEOs of twelve mutual savings banks and related organizations and discussed ways to promote sound development of mutual savings banks on February 23. A Summary of Remarks by FSC Chairman Amid an enduring risk of default originating from real estate market volatility, digital transition in the financial industry, and a polarization in the savings banks sector, it is now crucial to have a structural transformation in the industry for the survival and growth of savings banks. Against this backdrop, the FSC has prepared a set of measures to promote sound development of savings banks to facilitate their transition away from the short-term profit driven and community-centered operational model toward a more real economy-oriented and nationwide operational approach. In this regard, the financial intermediary function of savings banks should move away from real estate and collateral operations toward the real economy sector, such as SMEs, MMEs, and small merchants, in a more balanced way. To help savings banks retain their competitiveness amid changing business environment, the FSC will seek to overhaul relevant regulations pertaining to their operating practices. In order to propel a transition toward productive finance and remove regulatory hurdles for savings banks, a condition of sound management practices should be met. Therefore, the FSC also plans to carry out regulatory reforms regarding the soundness and governance structure of savings banks commensurate with the size and role of savings banks. Key Measures a) Promoting a transition toward productive finance and upgrading rules on operating practices to make them more reasonable The FSC will seek to overhaul regulations to make the financial intermediary function of savings banks more balanced across the real economy, transitioning away from the real estate sector toward SMEs, MMEs, and small merchants. To this end, the FSC will seek
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Feb 12, 2026

FSC Announces Measures to Strengthen Delisting Rules to Facilitate Effective Removal of Unviable Companies

The Financial Services Commission and the Korea Exchange announced plans to strengthen delisting rules intended to facilitate the exit of unviable companies in a more swift and strict manner. Background The government has been making necessary upgrades to the KOSDAQ market to transform it into an engine of productive finance and a platform for growth for innovative companies. In December last year, the government introduced measures to boost confidence and innovation in the KOSDAQ market consisting of the following key policy initiatives(a) strengthening the independence, autonomy, and competitiveness of the KOSDAQ market division, (b) redesigning the listing/delisting system to make the KODSAQ market more dynamic with easy entry and exit, (c) fostering stable conditions for institutional investors to enter the market, and (d) strengthening protection for investors to bolster market confidence. An upgrade to the delisting rules being introduced today is aimed at boosting dynamism in the KOSDAQ market by facilitating a seamless entry of innovative companies and ensuring a swift and strict removal of unviable companies. In this regard, the KOSDAQ delisting process has been made more efficient last year with the streamlining of the delisting review process from the three-tier review system with two years of improvement period previously to the two-tier review system with one and a half year improvement period. Last year, the market capitalization and revenue thresholds for delisting were also proposed to be adjusted upward in stages. In 2025, the number of delisting decisions increased to thirty-eight, rising significantly from eight in 2023 and twenty in 2024. Nonetheless, there continue to exist problems regarding underperforming and unviable companies (so-called zombie companies). In effect, over the past twenty years, a total of 1,353 companies entered the KOSDAQ market, but only 415 companies were removed from the market. During this period, KOSDAQ market cap rose
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Feb 11, 2026

Household Loans, January 2026

In January 2026, the outstanding balance of household loans across all financial sectors increased KRW1.4 trillion (preliminary), turning back up from the decline of KRW1.2 trillion in the previous month. (By Type) Home-backed mortgage loans increased KRW3.0 trillion, growing at a faster rate compared with the previous month (up KRW2.3 trillion). Mortgage loans dropped at a slightly faster rate in the banking sector (down KRW0.5 trillion down KRW0.6 trillion), but rose at a faster rate in the nonbanking sector (up KRW2.8 trillion up KRW3.6 trillion). Other types of loans edged down KRW1.7 trillion, declining at a slower rate compared with the previous month (down KRW3.6 trillion), as credit loans dropped at a slower pace (down KRW2.5 trillion down KRW1.0 trillion). (By Sector) In January 2026, household loans in the banking sector saw a drop of KRW1.0 trillion, declining at a slower rate compared with the previous month (down KRW2.0 trillion). Banks own mortgage loan products fell at a faster rate (down KRW1.4 trillion down KRW1.7 trillion), while policy-based mortgage loans rose at a slightly faster rate (up KRW0.9 trillion up KRW1.1 trillion). Other types of loans including credit loans declined at a slower rate (down KRW1.5 trillion down KRW0.4 trillion). In the nonbanking sector, household loans rose KRW2.4 trillion, growing at an expanded level from a month ago (up KRW0.8 trillion). Mutual finance businesses (up KRW2.0 trillion up KRW2.3 trillion) saw household loans edging up more rapidly, while insurance companies (down KRW0.02 trillion down KRW0.2 trillion) saw household loans declining at a faster rate. Specialized credit finance businesses (down KRW0.8 trillion down KRW0.02 trillion) saw household loans declining at a slower rate, while savings banks (down KRW0.5 trillion up KRW0.3 trillion) saw household loans shifting back up from a decline seen in the previous month. (Assessment) In January 2026, the outstanding balance of household loans edged up KRW1.
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Feb 08, 2026

FSC Holds Meeting to Review Situations over Bithumb's Erroneous Payouts and Discuss Improvement Measures

Chairman Lee Eog-weon of the Financial Services Commission convened a meeting with officials from the Korea Financial Intelligence Unit (KoFIU) and the Financial Supervisory Service (FSS) on February 8 to review situations concerning erroneous payouts of bitcoins (BTC) by Bithumb, which took place on the evening of February 6, and to discuss measures to strengthen the internal control system of virtual asset exchange service providers. Current Situation In the wake of accidental payouts of bitcoins (BTC) by Bithumb, which took place around 19:00 on February 6, an emergency meeting was held where the authorities discussed the issue of providing compensations for users following a sharp drop seen in the price of bitcoin (BTC). In this regard, Bithumb announced its own plans to offer compensations for its platform users whose sell transactions were affected by the accident and to make sure that its BTC users ledger is being maintained accurately. At todays meeting, FSC Chairman Lee instructed officials to check whether there are any further damages to users and to continue to monitor the progress of on-site inspections performed by the FSS and any significant movements in the virtual asset market. Government Response In response to Bithumbs erroneous payouts, an emergency response unit was set up at yesterdays meeting, consisting of officials from the FSC, KoFIU, FSS, and DAXA (Digital Asset Exchange Alliance), to make sure that necessary steps are taken to protect the users of virtual assets. As such, at todays meeting, the authorities discussed ways bring about regulatory and structural improvements to strengthen the reliability and transparency of virtual asset exchange service providers. In response to the recently exposed vulnerability in the internal control system of virtual asset exchange service providers, FSC Chairman Lee instructed officials to conduct inspections on Bithumb and all other virtual asset exchange service providers and to make sure that they ar
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Feb 05, 2026

KoFIU Announces AML/CFT Policy Agendas for 2026

The Korea Financial Intelligence Unit (KoFIU) held a policy advisory committee meeting on anti-money laundering and countering the financing of terrorism (AML/CFT) and announced key policy agendas for 2026 on February 5. At the committee meeting, KoFIU Commissioner Lee Hyung Ju said that it has been 25 years since the AML framework was first introduced in Korea pursuant to the Act on Reporting and Using Specified Financial Transaction Information (the Act hereinafter). In this regard, Commissioner Lee talked about the need to strengthen AML response capacity against newly emerging types of fraudulent activities, especially with regard to transborder crimes. To this end, the KoFIU plans to pursue four major policy agendas as follows(a) strengthening the capacity to respond to serious public livelihood infringement crimes and transborder crimes, (b) bolstering the AML framework in the virtual asset industry, (c) improving financial companies AML capacity, and (d) enhancing regulatory consistency with global standards. Background Since its establishment in 2001, the KoFIU has been examining and analyzing specified financial transaction information to be provided to law enforcement agencies and supervising and overseeing the AML duty of financial companies. Over the past 25 years, the volume of both suspicious transaction reports (STRs) and analysis of information being shared with law enforcement agencies has increased significantly. In 2023-2024, the use of KoFIUs analysis data led to the uncovering of major tax and customs violations cases. In 2021, the KoFIU adopted a registration system for virtual asset service providers (VASPs) and made them subject to the AML duty, thereby employing inspections and sanctions tools to help strengthen the AML capacity of VASPs. The KoFIU was the first in the world to adopt the travel rule for VASPs, requiring them to transmit and hold originator and beneficiary information in virtual asset transactions. Nonetheless, the Korean soc
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Feb 05, 2026

FSC Introduces Measures to Strengthen Income Benefit and Enhance Convenience for Reverse Mortgage Subscribers

The Financial Services Commission announced measures to strengthen income benefits and enhance convenience for reverse mortgage subscribers on February 5. Background The reverse mortgage program in Korea allows subscribers to take out reverse mortgage loans (monthly payments) using their houses as collateral in their lifetime, guaranteeing senior citizens a certain level of monthly income while continuing to live in their homes in retirement. Since the reverse mortgage program was first introduced in Korea back in 2007, there have been continuous efforts to expand the eligibility requirement regarding the age of subscribers and the price of houses.As a result, some 150,000 households were found to have subscribed to reverse mortgages in cumulative terms as of the end of 2025 (2% subscription rate). However, given the tendency of heavily concentrated wealth in real estate among senior citizensand rapidly aging populationin Korea, it remains necessary to further promote the use of the reverse mortgage program. In this regard, the following measures have been prepared to make reverse mortgage loans as a more mainstream source of retirement income generation for the elderly. Key Measures a) Increasing reverse mortgage payments Through a redesigning of the actuarial model used in the reverse mortgage program, subscribers will be able to receive increased payments. For an average subscriber (aged 72 with home value of KRW400 million), his or her monthly payments will increase by about 3.13 percent from KRW1,297,000 previously to KRW1,338,000. Over an entire subscription period (17.4 years for 72 y/o), the total amount of payments is forecast to be increased by about KRW8,490,000. This change will take effect for new subscribers from after March 1, 2026. In addition, there will be expanded support for low-priced homeowners residing in houses valued below a certain level. Currently, there is extra payment benefit provided to the subscribers who meet certain conditions (reci
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Feb 02, 2026

AI-driven Stock Market Monitoring System Adopted to Boost Early Response Capacity against Unfair Trading Activities

The Financial Services Commission announced that the Korea Exchange (KRX) will begin to operate an AI-driven market monitoring system from February 3 to bolster its early response capacity against market manipulation and other unfair trading activities. Despite recent increases in the number of attempts to unfairly influence and manipulate stock prices through dissemination of false information online, it remained difficult for authorities to verify the vast volume of data circulating in the cyberspace. Against this backdrop, as a follow-up to the comprehensive measures to stamp out unfair trading activities in stock markets (jointly announced by the FSC, FSS and KRX in July 2025), the KRX has developed an AI-driven monitoring system to more quickly and accurately detect and analyze relevant information circulating in the cyberspace. The newly launched AI-driven market monitoring system has been developed based on the training and analysis of online posts, reported cases of spam text messages, YouTube videos, and relevant data on stock price movements on the stock items that have been previously identified as potential targets of unfair transactions. Based on a set of objective indicators that the AI has learned from the training, the system has been designed to monitor trends of cyber information, assign scores on individual stock items, and automatically detect the items showing a high probability for unfair transactions activities. The findings will assist authorities to look into whether there are actually suspicious transactions activities involving certain stock items and help them to conduct more in-depth examinations if deemed necessary. With the AI-driven market monitoring system in place, authorities will be able to more quickly respond to suspicious transactions activities. The types of cyber information being monitored on a real-time basis will be expanded with an enhanced level of efficiency in sorting out high-risk stock items. The AI-based automated d
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Jan 30, 2026

Capital Market Rules Change Proposed to Upgrade Regulations on Domestic Exchange-traded Fund Market

The Financial Services Commission proposed capital market rules change to upgrade regulations on the domestic exchange-traded fund (ETF) market and help close the regulatory gap existing between domestically listed ETFs and overseas listed ETFs. The revision proposal for the Enforcement Decree of the Financial Investment Services and Capital Markets Act (FSCMA) and the regulation on financial investment businesses will enter a 40-day comment period from January 30 to March 11, 2026. Due to the presence of regulatory gap existing between domestically listed ETFs and overseas listed ETFs (with overseas ETFs being subject to eased regulations in their jurisdictions), it has been pointed out that the domestic ETF market has not been able to sufficiently absorb the demand of investors for diverse types of ETFs. In this regard, an upgrade to relevant regulations is proposed to improve regulatory consistency with global standards and boost the competitiveness of domestic capital markets, while ensuring stronger protection and greater convenience for investors to encourage investments in the domestic market. Key Revision Details a) Introducing single-stock ETFs (same rules to be applied on ETNs) In major overseas markets, such as the U.S. and Hong Kong, there are single-stock ETFs available for domestic investors to trade using mobile applications of domestic securities firms. However, in Korea, it is currently not possible to launch single-stock ETFs or single-stock ETNs due to the dispersed investment rule requiring ETFs to have at least ten (five for ETNs) underlying items with maximum 30 percent limit on each item. In this regard, the FSC will seek to amend relevant rules to allow the listing of single-stock ETFs tracking blue-chip stocks in the domestic market. The revised rules will also apply to exchange-traded notes (ETNs) through an update to the Korea Exchange (KRX) rules. Considering the need for investor protection and also overseas cases, leveraged ETFs and ETN
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Jan 29, 2026

Legislative Ground Established to Check Criminal Record on Major Shareholders of Virtual Asset Service Providers

The Financial Services Commission announced that a revision bill for the Act on Reporting and Using Specified Financial Transaction Information (the Act hereinafter) passed the plenary session of the National Assembly on January 29. The revision is intended to strengthen entry rules for virtual asset service providers and allow the notification of sanctions imposed on former (retired) employees of financial companies. Key Revision Details a) Strengthening of entry rules for virtual asset service providers With the revised law in place, the rules concerning the market entry of virtual asset service providers have been strengthened. More specifically, the revised law authorizes the Korea Financial Intelligence Unit (KoFIU) to check criminal record on major shareholders when screening for the registration of a virtual asset service provider. Previously, only the chief executive and other executive officers were subject to criminal background check. Under the revised law, the scope of laws under which previous rule-breaking activities are screened for will also be broadened to include violations regarding illegal narcotics trafficking, fair trade, tax offenses, specific economic crimes, virtual asset user protection, etc. Additionally, the revised law will enable the KoFIU to examine financial conditions and social credibility of virtual asset service providers and whether they are equipped with appropriate levels of organizational, human resources, computer network, and internal control capacities for complying with relevant regulations. Moreover, even after granting an approval of business registration, the revised law establishes a ground for the KoFIU to impose certain conditions for the purpose of ensuring anti-money laundering, user protection, etc. b) Notification of sanctions imposed on retired employees of financial companies The revised law also includes a provision authorizing the KoFIU to notify financial companies about the issuance of sanctions imposed on
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Jan 28, 2026

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

The Financial Services Commission approved revised rules on corporate disclosures at the regular meeting held on January 28. The rule changes are aimed at expanding the scope of listed companies being subject to the mandatory English disclosure requirement and making corporate disclosure practices more transparent regarding annual general meetings of shareholders (AGMs) and executive compensations. Key Revision Details a) Expanding mandatory English disclosure requirement (from May 2026) The FSC and the Korea Exchange (KRX) have been working on expanding the application of mandatory English disclosure requirement on listed companies in stages. In this regard, the mandatory English disclosure requirement entered into the first stage in January 2024 for listed companies with assets worth KRW10 trillion or more (and foreign ownership of 5 percent or more) or those with assets worth KRW2 trillion or more (and foreign ownership of 30 percent or more). Under the revised rules, the mandatory English disclosure requirement will be expanded to all KOSPI-listed companies with assets worth KRW2 trillion or more from May 2026. This will significantly increase the number of listed companies being subject to the mandatory English disclosure requirement from the current level of 111 companies (based on their total assets as of end-2024) to 265 companies. The disclosure items subject to the mandatory English disclosure will also be expanded to all disclosure items required by KRX rules, including material information in its entirety (55 items), fair disclosure, and inquired disclosure. The time required for companies to submit English disclosures after filing their original Korean disclosures will also be reduced. Large KOSPI-listed companies with assets worth KRW10 trillion or more will need to submit English disclosures on the same day of filing their Korean disclosures with the KRX in principle. Listed companies with assets worth KRW2 trillion or more that are newly becoming sub
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Jan 21, 2026

Rule Change Proposed on Loan-to-deposit Ratio for Banks to Promote Supply of Funds to Regional Economies

The Financial Services Commission issued a preliminary notice of rule change regarding the supervisory regulation on banking business on January 21. The proposed rule change will ease the standard for calculating loan-to-deposit ratios for banks to encourage them to supply more loans to companies and individual business owners operating outside the Seoul metropolitan area. The proposed rule change will be put up for public comment from January 22 until February 11, 2026 and go through an approval process before taking effect in the first quarter of this year. The proposed rule change is part of a broader policy initiative intended to boost the supply of funds to regional economies. In this regard, the proportion of policy funds being supplied to non-Seoul metropolitan regions will be increased from about 40 percent in 2025 to about 45 percent by 2028. This will push up the annual volume of policy funds being supplied to regional economies by about KRW25 trillion to a total of KRW120 trillion in 2028. To promote a well-balanced growth across regions, National Growth Fund, which will make investments in high-tech and future growth industries, will also allocate about 40 percent of its total investments to regions outside the Seoul metropolitan area. There will also be efforts to boost the supply of funds to regions from private financial companies. The FSC plans to upgrade rules and provide incentives to improve the competitiveness of regional banks and strengthen the function of savings banks and mutual finance businesses in providing regional finance. In this regard, the proposed rule change on banks loan-to-deposit ratio is intended to provide incentive for banks to supply more funds to regional economies. Under the current system, banks issuance of loans to companies, individual business owners, and households are weighted 85 percent, 100 percent, and 115 percent, respectively. However, with the rule change in place, the weight applied for calculating banks loan-t
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Jan 19, 2026

Network Separation Rule to be Eased in Financial Industry to Facilitate Use of Cloud-based Software as a Service

The Financial Services Commission issued a preliminary notice of rule change regarding the supervisory regulation on electronic financial services on January 19. The proposed rule change will grant financial companies an exemption from the network separation rule for making use of a cloud-based Software as a Service (SaaS) program in their internal network with a condition that they demonstrate a certain level of capacity to comply with network security protocols. The rule change proposal will be put up for public comment from January 20 until February 9, 2026. With the upgraded rule in place, financial companies will be able to adopt and make use of various SaaS programs for their administrative and back office operations without having to go through an approval process under the financial regulatory sandbox program. Background In August 2024, the FSC introduced a roadmap for making improvements to the network separation rule in the financial industry, allowing the use of SaaS for financial companies on a temporary basis under the financial regulatory sandbox program if they have established adequate network security measures. Under the announced policy roadmap, the FSC also had plans for granting exemption on a more permanent basis in the future once there accumulates an ample volume of cases of SaaS program usage by financial companies. In this regard, since September 2023, a total of 32 financial companies have been permitted to operate 85 different SaaS programs under the financial regulatory sandbox program thus far, which demonstrates a level of stability and the volume of accumulated usage cases sufficient for financial authorities to grant exemption from the network separation rule on a permanent basis through a revision of relevant regulation. Key Revision Details First, SaaS programs specified under the Enforcement Decree of the Act on the Development of Cloud Computing and Protection of Its Users will be exempted from the network separation rule pursuant
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