-
Apr 02, 2024
- Future Finance Taskforce Kick-off Ceremony Takes Place
- The Financial Services Commission held a kick-off ceremony for future finance taskforce on April 2, together with relevant agencies, thinktanks, and academia. In accordance with the 2024 financial policy agendas, a taskforce on future finance has been organized with the aim of finding ways to tackle various challenges, such as climate crisis, population decline, and digital transformation. At the meeting, participants freely discussed about challenges and opportunities in the financial sector brought by demographic shift, climate change, and technological advancement. In his opening remarks, FSC Vice Chairman Kim Soyoung said that we are in the midst of mega trends, such as rapid change in population structure, climate change, and technological innovation. In this regard, Vice Chairman Kim said that these challenges constitute the known unknowns and that they demand systematic analysis and measured responses from both the public and private sectors. The future finance taskforce will be organized into three working groupspopulation, climate, and technology. First, the population working group aims to identify demographic factors that will have impact on the real economy and financial markets. It will also seek to explore ways to more effectively provide financial support measures to help young adults and newlyweds. Second, the climate working group aims to seek ways to reach the 2050 carbon neutral goal and enhance corporate climate adaptation capacity with a long-term perspective. It will also explore various ways to promote climate financing in low-carbon transition, renewable energy, and so on. Third, the technology working group aims to promote the use of advanced digital technology, such as blockchain and artificial intelligence, in financial services to boost user convenience and enhance the competitiveness of financial companies. It will also explore ways to more effectively regulate the use of new technologies and ensure financial stability and consumer prote
-
Mar 28, 2024
- FSC Chairman's Visit to Poland Helped to Strengthen Foundation for Bilateral Financial Cooperation
- Chairman Kim Joo-hyun of the Financial Services Commission visited Warsaw, Poland and the United Nations Industrial Development Organization (UNIDO) in Vienna, Austria from March 24 to 28. Korea-Poland Bank Federations MOU and Joint Seminar Chairman Kim attended the Korea-Poland banking associations memorandum of understanding (MOU) signing ceremony and joint seminar event held on March 25 and delivered congratulatory remarks. In his speech, Chairman Kim said that enhanced partnership between the banking groups of the two countries will help to propel economic cooperation between the two countries and expressed strong support for this partnership. Meeting with Chair of the Polish Financial Supervision Authority On March 25, Chairman Kim met with Jacek Jastrzebski, Chair of the Polish Financial Supervision Authority. This marked the first meeting between chief financial authorities of two countries. At the meeting, both sides shared a common view on the significance of strengthening financial cooperation between the two countries against the backdrop of deepening economic cooperation and trade relations in the defense materials and nuclear plant sectors. The two leaders also discussed ways to facilitate Korean banks to gain authorization to operate in Poland and agreed to work for a prompt conclusion of an MOU on supervisory cooperation. Both sides also agreed to strengthen cooperation in extending support for SMEs and startup businesses. Chairman Kim invited Chair Jacek to Seoul for the signing of the MOU, and Chair Jacek responded favorably to his invitation. Meeting with Korean Companies Doing Business in Poland On March 26, Chairman Kim met with a group of Korean enterprises doing business in Poland in the defense materials, battery, and auto parts industries and held talks on their local operating conditions and financing difficulties. At the meeting, Chairman Kim said that providing export financing support is one of the governments key policy agendas and that
-
Mar 25, 2024
- FSC to Bolster the Role and Function of the Council on International Financial Cooperation
- The Financial Services Commission and the Council on International Financial Cooperation announced measures to bolster the role and function of the CIFC for 2024 on March 25. The CIFC was launched in 2013 with aims to support domestic financial institutions business expansion overseas and facilitate their sharing of experience and know-how with other countries. Financial institutions from the public and private sectors as well as financial industry associations are members to the CIFC, which is currently run by the Korea Institute of Finance. Since its establishment, domestic financial institutions demand for overseas business expansion has grown. In order to meet this demand and more systematically support domestic financial companies overseas business expansion, the FSC has prepared the following measures to bolster the role and function of the CIFC. First, the networking program including forums and seminars will be held more frequently and more in association with other relevant programs made available by international organizations, for instance. Second, an integrated database system will be set up to facilitate information sharing and exchange between members. Third, the training program will be overhauled to provide more effective vocational training courses on a longer-term basis. Fourth, a visiting scholars program will be newly introduced to invite senior officers from overseas financial regulatory agencies for joint research projects and collaboration. In 2024, this research program will begin with Indonesia and then be expanded to Vietnam. In 2024, the CIFC plans to hold financial cooperation forums twice to provide more opportunities for networking. The CIFC has plans to offer long-term training courses to foreign government officials from Laos, Thailand, Cambodia, and Malaysia. With its organizational capacity expected to grow beginning from this year, the CIFCs role of serving as a control tower for domestic financial sectors business expansion overse
-
Mar 25, 2024
- FSC Chairman to Visit Poland to Strengthen Bilateral Cooperation in Financial Sector
- Chairman Kim Joo-hyun of the Financial Services Commission will travel to Poland from March 24 to 27. The visit will mark the first such trip to Poland by an FSC Chairman and underscore increased demand for cooperation in the financial sector since a bilateral summit took place between the two countries in July last year. In the wake of the Korea-Poland summit held in July last year, domestic banks have shown growing interest in expanding business to the Central European country, since Koreas exports to Poland in defense materials, nuclear plants, and infrastructure are expected to rise in the future. In this regard, on Monday, March 25, FSC Chairman Kim Joo-hyun will meet with the Chair of the Polish Financial Supervision Authority and express the Korean government and financial sectors strong commitment to ensure seamless financing for various cooperation projects. At the meeting, Chairman Kim will also seek active cooperation from his Polish counterpart to facilitate Korean banks business operation there. In Poland, Chairman Kim also plans to meet with Korean companies doing business in Poland in defense, battery, and auto parts sectors and hold talks on local market conditions and ways to help resolve their difficulties. Chairman Kim will also attend seminars organized by both countries financial and fintech industry groups and demonstrate support. The FSC expects that Chairman Kims Poland visit will help to expand the horizon of bilateral cooperation to the financial sector and make great contributions to large-scale cooperation projects and trades between the two countries. On a second leg of his trip, Chairman Kim will travel to Austria to meet with officials from the United Nations Industrial Development Organization (UNIDO) and sign an MOU (memorandum of understanding) aimed at strengthening cooperation to promote Korean financial and fintech companies business expansion and operation in developing countries. * Please refer to the attached PDF for details.
-
Mar 18, 2024
- OECD-FSC-KIF Roundtable on Digital Finance in ASEAN Held on March 18-19
- The Financial Services Commission held a joint roundtable meeting on digital finance in ASEAN with the Organization for Economic Cooperation and Development (OECD) and Korea Institute of Finance (KIF) for two days on March 18-19. The roundtable was organized around the topic of digital finance, offering officials a chance to share relevant policy trends and to discuss ways to address newly emerging risks arising from digital transformation in the financial sector. The two-day roundtable meeting will be participated by many officials and experts from Asia and OECD member economies. The roundtable meeting will deal with the following topics(a) digital assets, CBDCs and tokenization, (b) DeFi and crypto-assets in ASEAN and beyond, (c) cyber-security in the financial sector, (d) artificial intelligence in finance, and (e) generative AI in finance in Asia and ASEAN. During the opening session, FSC Vice Chairman Kim Soyoung delivered opening remarks where he said that financial innovation based on digital technologies hasbeen making positive impact on boosting the level of productivity in the financial industry. However, Vice Chairman Kim stressed the need to establish appropriate rules and ensure protection for consumers in response to newly emerging risks. Moreover, as there are increasing international exchanges taking place in the financial industry, Vice Chairman Kim said that Korea will seek to strengthen cooperation with international organizations and ASEAN economies to share the latest financial industry trends and ensure regulatory consistency with global standards. The FSC will take into account the global trends and key issues dealt by the roundtable meeting for future policy reference. The FSC will continue to work on strengthening financial cooperation with other countries and international organizations. * Please refer to the attached PDF for details.
-
Mar 13, 2024
- Household Loans, February 2024
- In February 2024, the outstanding balance of household loans across all financial sectors fell KRW1.8 trillion (preliminary), declining for the first time since March 2023. * Change (in trillion KRW, y-o-y): +2.4 (Sep 2023), +6.2 (Oct), +2.6 (Nov), +0.1 (Dec), +0.9 (Jan 2024), -1.8 (Feb)p (By Type) Home mortgage loans increased KRW3.7 trillion, edging up at a slightly slower pace compared with the previous month (up KRW4.1 trillion). Mortgage loans from banks went up KRW4.7 trillion, showing a similar pace of growth from the previous month (up KRW4.9 trillion). Mortgage loans from nonbanks fell at a faster rate (from down KRW0.8 trillion a month before to down KRW1.0 trillion in February 2024). Other types of loans declined KRW5.5 trillion with drops seen in the banking and nonbanking sectors. (By Sector) Household loans grew in the banking sector at a slower pace while expanding at a faster pace in the nonbanking sector. Banks saw an increase of KRW2.0 trillion in household loans in February, a drop from an increase of KRW3.4 trillion in the previous month. Mortgage loans from banks fell somewhat from the previous month due to significant declines in policy mortgage loans and group lending for new apartment subscriptions. Other types of loans fell at a faster pace (from down KRW1.5 trillion to down KRW2.7 trillion) led by credit loans. In the nonbanking sector, household loans declined KRW3.8 trillion, falling at a faster pace compared with the previous month (down KRW2.5 trillion). Mutual finance businesses (down KRW3.0 trillion) and insurance companies (down KRW0.6 trillion) saw continuing declines in household loans, and savings banks (down KRW0.1 trillion) and specialized credit finance companies (down KRW0.1 trillion) also saw household loans drop from a month before. (Assessment) Although the outstanding balance of household loans across all financial sectors declined in February for the first time since March 2023, there is growing demand for refinancing loa
-
Mar 11, 2024
- FSC and FSS Join APRC MMoU to Strengthen Supervisory Cooperation in Capital Markets
- The Financial Services Commission and the Financial Supervisory Service officially became signatories to the multilateral memorandum of understanding (MMoU) of the Asia Pacific Regional Committee (APRC) under the International Organization of Securities Commissions (IOSCO) on March 8. The APRC is made up of capital market supervisors and regulators from 22 countries across the region of Asia-Pacific. Prior to Korea joining the MMoU, there were 10 member countries already signed up for the supervisory cooperation MMoU, including Hong Kong, Japan, Australia, Singapore, Taiwan, New Zealand, Malaysia, Mongolia, Thailand, and Bangladesh. If the number of signatories grows in the future, the scope of cooperation is expected to grow further. This MMoU on supervisory cooperation was established with aims to strengthen supervisory cooperation and information exchange on securities and derivatives markets among market regulators in the Asia-Pacific region. With the signing of the MMoU, the FSC and the FSS expect to have an enhanced level of supervisory cooperation with overseas regulators. Prior to this, the FSC and the FSS had joined the IOSCO MMoU and E-MMoU (Enhanced MMoU) frameworks in 2010 and 2019, respectively, to enhance cooperation on investigating unfair trading activities and to bolster sharing and exchanging of information. The FSC and the FSS plan to make continuous effort to facilitate seamless exchange of information and mutual cooperation with capital market supervisors and regulators from other countries. * Please refer to the attached PDF for details.
-
Mar 11, 2024
- Application for Interest Refunds from Nonbank Lenders to be Available for Small Merchants from March 18
- The Financial Services Commission (FSC) and the Ministry of SMEs and Startups (MSS) announced that small merchants who borrowed from nonbank financial institutions with interest rates ranging from 5 percent to 7 percent as of December 31, 2023 will be able to apply for interest refunds from their lenders starting from March 18. From March 13, the nonbank financial institutions, such as savings banks, mutual finance businesses, and specialized credit finance businesses, will start notifying their customers about the availability of this interest refund support program through their website or via mobile text message. Borrowers who are eligible to receive interest refunds will be able to apply starting from March 18. Interest refunds will begin to be paid out starting from March 29. For a borrower to be eligible to receive interest refunds, he or she should have made interest payments for at least a full-year. Once the lender verifies the receipt of a full-year interest payments, the borrower will receive interest refunds within six business days from the last business day of the first quarter that falls after the borrower made full-year interest payments. For those holding multiple loan accounts, interest payments should have been made for a full-year on all of their loan accounts to be eligible for the payback in interest refunds. Thus, borrowers are advised to check whether they have made interest payments for a full-year before applying. The refund rate on loans will vary depending on actual borrowing rates adopted as of the last day of December 2023. For loans with interest rates ranging from 5.0 percent to 5.5 percent, a refund rate of 0.5 percent will be applied. For loans with interest rates ranging from 5.5 percent to 6.5 percent, the refund rate will be determined as a difference between the actual interest rate adopted and 5 percent. For loans with interest rates ranging from 6.5 percent to 7 percent, a refund rate of 1.5 percent will be applied. The maximu
-
Mar 06, 2024
- Authorities Hold Meeting on Policy Finance to Discuss Operation of KRW5 Trillion Fund for MMEs
- The Financial Services Commission held the 6th consultative body meeting on policy finance with related government ministries and policy financial institutions on March 6. FSC Vice Chairman Kim Soyoung presided over the meeting and delivered opening remarks where he emphasized the need for policy financial institutions to frontload the implementation of policy funds as much as possible in the first half of this year in line with the planned frontloading of fiscal spending by the government amid ongoing challenges in the economy. At todays meeting, officials discussed the launching of a fund specifically designed to support middle market enterprises (MMEs). The MME investment fund will be created in the size of about KRW5 trillion with contribution from the banking sector, and it is expected to provide a significant boost to MMEs in their attempt to venture into new industries or expand their operations. Second, officials discussed this years plan for operating the innovative growth fund, which has been set up for operation since last year with aims to boost future growth engines and cultivate innovative venture businesses. For 2023-2027, the innovative growth fund aims to supply KRW15 trillion worth of policy funding support. Last year, despite challenges resulting from high interest rates, the total volume of funds raised at the end of the year surpassed the initial target of KRW3 trillion. For this year, officials decided to raise additional KRW3 trillion for the operation of the innovative growth fund, which will help to facilitate investment in climate related and artificial intelligence technologies. Third, officials discussed ways to refine impact analysis to better examine the effectiveness of policy finance support provided to enterprises through a close input-output analysis performed by Korea Credit Information Services and Korea Institute of Finance. The result of their analysis will be utilized to improve efficiency in the allocation of policy funds supp
-
Mar 04, 2024
- Rule Changes Proposed for Upgrading Regulation on Corporate Mergers and Acquisitions
- The Financial Services Commission issued a preliminary notice of rule changes being proposed for improving regulations on corporate mergers and acquisitions under the Financial Investment Services and Capital Markets Act (FSCMA). The revisions being proposed for the enforcement decree of the FSCMA and its subordinate regulation on the issuance and disclosure of securities contain measures to strengthen disclosure duties, improve the process of external evaluation, and upgrade the method for calculating merger prices. First, with regard to enhancing disclosure duties, the revision proposal mandates listed companies to disclose written statements about their board of directors meetings with details regarding what has been discussed and decided on MA related issues. This will ensure that general shareholders can have access to information regarding corporate MA activities. The board of directors written statement should contain information about the purpose of merger, its anticipated effect, merger price and ratio, as well as any dissenting opinion. The board of directors written statement about MAs should be disclosed as an attachment to the securities registration and material disclosure for that particular year. This will help to ensure more responsibility from boards of directors and increased fairness and transparency in the process of MAs. Second, regarding rules on the external evaluation process, the revision proposal establishes a code of conduct for external evaluation agencies to bolster fairness and credibility. In this regard, external evaluation agencies will be required to maintain their own quality management standards, or otherwise be barred from serving as an external evaluator. Their quality management standards should address issues relating to the maintenance of autonomy, objectivity, and fairness, conflicts of interest, confidentiality, and actions to be taken for misconduct. An external evaluation agency offering third-party evaluation service to
-
Feb 27, 2024
- FSC Vice Chairman Holds Investor Relations in Singapore and Introduces the Corporate Value-up Program
- Vice Chairman Kim Soyoung of the Financial Services Commission held an investor relations event in Singapore with major institutional investors from Asia participating on February 27. During the dialogue, Vice Chairman Kim outlined the governments capital market reform initiatives with a particular attention on the recently announced Corporate Value-up Program, which have gained much interest from both domestic and overseas investors. The following is a summary of Vice Chairman Kims remarks. The Korean governments capital market reform measures have been focused on the following three areas. First, to establish a fair and transparent market order, the government has bolstered measures against unfair trading activities. A temporary ban on short-selling has been put in place to make trading conditions more equal for both retail and institutional investors and to build a completely electronic short-selling transaction system designed to prevent naked short-selling activities. Second, to make Koreas capital markets more accessible to investors, the authorities have already abolished the foreign investors registration requirement, mandated companies to file disclosures in English in phases, and eased the reporting requirement to facilitate the use of omnibus account. To help expand domestic investor base, the government has already decided to repeal the planned introduction of capital gains tax on financial investments and plans to expand tax benefits for individual savings accounts (ISAs). Third, to promote shareholder values in corporate management practices, the government has been consistently working on various measures aimed at protecting the rights of general shareholders. As a consequence, many large companies have now adopted the improved dividend payout procedure in which investors are able to make investment decisions while knowing how much they will receive in dividends. In addition, the Corporate Value-up Program, which was unveiled on February 26, is design
-
Feb 26, 2024
-
Feb 14, 2024
- Household Loans, January 2024
- In January 2024, the outstanding balance of household loans across all financial sectors edged up KRW0.8 trillion (preliminary), a growth of KRW0.6 trillion from the previous month (up KRW0.2 trillion). * Change (in trillion KRW, y-o-y): +6.1 (Aug 2023), +2.4 (Sep), +6.2 (Oct), +2.6 (Nov), +0.2 (Dec), +0.8 (Jan 2024p) (By Type) Home mortgage loans increased KRW4.1 trillion, edging up at a slightly slower rate than the previous month (up KRW5.0 trillion). Mortgage loans from banks rose at a somewhat slower rate (from up KRW5.1 trillion a month before to up KRW4.9 trillion in January 2024). Mortgage loans from nonbanks fell at a faster rate (from down KRW0.1 trillion a month before to down KRW0.8 trillion in January 2024). Other types of loans dropped KRW3.3 trillion. (By Sector) Household loans grew at a somewhat faster rate in the banking sector, while falling at a slower rate in the nonbanking sector. Banks saw a rise of KRW3.4 trillion in January 2024, up from KRW3.1 trillion a month ago. Home mortgage loans from banks grew KRW4.9 trillion, a slowdown from KRW5.1 trillion a month before, due mainly to a significant drop in the issuance of new policy mortgage loans. Other types of loans from banks dropped KRW1.5 trillion, declining at a slower rate than the previous month (down KRW2.0 trillion). Household loans from nonbanks fell KRW2.6 trillion, declining at a slower rate compared to the previous month (down KRW2.9 trillion). Mutual finance businesses and insurance companies saw drops of KRW2.5 trillion and KRW0.5 trillion, respectively, while specialized credit finance businesses and savings banks saw increases of KRW0.4 trillion and KRW0.1 trillion, respectively. (Assessment) Since the level of growth in January 2024 is about a quarter of the monthly average in the second half of last year, the pace of household loan growth remains at a stable level. However, as there are possibilities for changes in the future, financial authorities will keep close tabs on hous
-
Jan 31, 2024
- FSC Decides on the Method and Procedure for Authorizing a Regional Bank's Transition to Become a Nationwide Operator
- The Financial Services Commission held its second regularly scheduled meeting of the year on January 31 and discussed the method and procedure for authorizing a regional banks transition to become a nationwide operator under the Banking Act. On July 5, 2023, the government announced a plan to promote regional banks business expansion to become nationwide banking business operators as a way to spur competition in the banking industry. Under the current licensing system, all nationwide, regional and internet-only banking businesses need to get authorization from the FSC under the Article 8 of the Banking Act. Although most requirements and procedures are same for authorizing the operation of banking business, there are different requirements for minimum capital and maximum shareholding by a non-financial entity. Nonetheless, the Banking Act currently has no explicit provision on the issue of authorizing a regional banks transition to become a nationwide banking business operator. Some have commented in favor of allowing this through changes in the articles of incorporation for expanding the scope of business operation from a specific geographic region to nationwide. However, as this constitutes a critical matter from the standpoint of supervising financial institutions, the FSC finds it inappropriate to allow the transition from a regional bank to a nationwide banking business operator only through changes in articles of incorporation and without having a proper authorization process. Thus, the financial authorities prepared the following method and procedure for authorizing a regional banks transition to a nationwide operator under the current regulatory framework. First, regarding the method for authorizing a transition of a regional banking business to become a nationwide operator, the FSC will apply a modification of conditions specified under the Article 8 of the Banking Act. A new authorization may be utilized to allow a regional banks transition to become a nat
-
Jan 30, 2024
- FSC Holds Meeting and Announces Measures to Upgrade Rules on Treasury Stocks of Listed Companies
- The Financial Services Commission held a meeting with officials from related authorities, industry groups and research organizations on January 30 to discuss and announce measures to improve rules on treasury stocks of listed companies. The authorities prepared the measures after having a policy seminar on this topic in June last year and drawing opinions from various stakeholders and experts. At the meeting, FSC Vice Chairman Kim Soyoung delivered opening remarks, outlining market participants views on Koreas treasury stock system and proposing measures for improvement. The following is a summary of Vice Chairman Kims remarks. Unlike in the U.S. or other advanced markets, treasury shares in Korea have often been utilized for bolstering the control of major shareholders in a company, as opposed to their primary goal of increasing shareholder value. This has been made possible mainly because allocation of new shares is permitted on treasury stocks when companies spin off their business units, so that treasury stocks were used to bolster the control of major shareholders. Moreover, information about treasury stocks has not been made available in the market either in a timely or adequate manner, which presents the potential for damaging the rights and interests of general shareholders. Therefore, to protect the rights and interests of ordinary shareholders in corporate spin-offs, authorities will prohibit allocation of new shares on treasury stocks. In addition, authorities will upgrade rules to ensure a thorough review on the preparation of investor protection measures when a newly established company intends to list on an exchange after the spin-off. In addition, to ensure the provision of transparent information on the acquisition, holding and disposal of treasury stocks, authorities will upgrade rules to require listed companies to disclose in detail when the proportion of their treasury stock holding rises above a certain level and to strengthen disclosure duty fo
-
Jan 25, 2024
-
Jan 10, 2024
- Household Loans, December 2023
- The outstanding balance of household loans across all financial sectors went up KRW0.2 trillion in December 2023 (preliminary), showing a significant slowdown in the pace of growth from a month ago (up KRW2.6 trillion). In 2023, household loans increased KRW10.1 trillion across all financial sectors, up 0.6 percent from the end of last year. * Monthly change (in trillion KRW, y-o-y): +5.2 (Jul 2023), +6.1 (Aug), +2.4 (Sep), +6.2 (Oct), +2.6 (Nov), +0.2 (DecP) Annual change (in trillion KRW, y-o-y): +56.2 (2019), +112.3 (2020), +107.5 (2021), -8.8 (2022), +10.1 (2023P) (By Type) In December 2023, mortgage loans rose KRW5.1 trillion, slowing down from a rise of KRW5.6 trillion in the previous month. Other types of loans dropped KRW4.9 trillion, showing an accelerated pace of decline from a month ago (down KRW3.0 trillion). (By Sector) Household loans grew at a slower rate in the banking sector (up KRW5.4 trillion up KRW3.2 trillion), while declining at a faster rate in the nonbanking sector (down KRW2.8 trillion down KRW3.0 trillion). Mortgage loans from banks grew at a slightly slower rate from the previous month (up KRW5.7 trillion up KRW5.2 trillion) due to a suspension in the provision of a certain type of policy mortgage loan. Other types of loans fell KRW2.0 trillion due to the effects of year-end bonuses. Household loans from nonbanks fell KRW3.0 trillion in December 2023. Mutual finance businesses (down KRW1.6 trillion), savings banks (down KRW0.9 trillion), specialized credit finance businesses (down KRW0.5 trillion) and insurance companies (down KRW0.01 trillion) all saw declines in household loans. (Assessment) Household loans turned upward in 2023 from a drop in the previous year due to a recovery in the real estate market. Mostly, the growth was caused by policy mortgage loans extended to non-speculative homebuyers. Compared to previous years, the authorities evaluate that the pace of growth (up KRW10.1 trillion) is kept at a stable level currently. Nonet
-
Dec 20, 2023
- Financial Authorities of Korea and Japan Hold 7th Shuttle Meeting in Seoul on December 19-20
- The Financial Services Commission and the Financial Supervisory Service held the 7th shuttle meeting with Japans Financial Services Agency in Seoul on December 19-20. The shuttle meeting between the financial authorities of the two countries was held for the first time in seven years since the last meeting held in Tokyo in June 2016. Key details of the meeting are included in the joint press release shown below. 1. The Seventh Korea-Japan Shuttle Meeting was held by three financial supervisory and regulatory authorities (the Financial Services Commission (FSC), the Financial Supervisory Service (FSS) of the Republic of Korea and the Financial Services Agency (FSA) of Japan; hereinafter referred to as the three authorities) in Seoul, the Republic of Korea, on December 19 and 20. The Shuttle Meeting was held for the first time in seven years since the last meeting in Tokyo in June 2016. 2. The first Shuttle Meeting was held in Seoul in 2012 with the aim of strengthening cooperation between Korean and Japanese financial authorities. At the Shuttle Meeting this year, a meeting between Mr. KIM Joo-hyun, Chairman of the FSC of the Republic of Korea, and Mr. KURITA Teruhisa, Commissioner of the FSA of Japan, was held on December 19, and a meeting between Mr. LEE Bokhyun, Governor of the FSS of the Republic of Korea, and Mr. KURITA was held on December 20. 3. At the Shuttle Meeting, the three authorities held a frank and constructive discussion on the global economic and financial situation as well as their financial supervisory and regulatory priorities. 4. Mr. Kim welcomed todays shuttle meeting, which took place following the October meeting with Mr. Kurita in Tokyo. Recognizing the Japanese governments policy to promote digital transformation and startup business, as well as a move that encourages Korean startups and fintech companies to closely watch the Japanese market, Mr. Kim indicated that the FSC, in tandem with its relevant institutions, plans to hold IR events,
-
Dec 19, 2023
- Provision of Policy Finance Support Worth KRW212 Trillion Planned for 2024
- The Financial Services Commission held a meeting with the related government ministries and policy financial institutions on December 19 and decided on a plan for providing policy finance support for 2024. The consultative body on policy finance support was launched last year with aims to more effectively supply policy funds in line with the industrial strategies and policies prioritized by government ministries.Through the operation of the consultative body, the government was able to successfully implement and quickly provide KRW91 trillion in policy funding support to the five key strategic sectors in 2023 as planned. In 2024, the authorities decided to increase the total amount of financing support made available through policy financial institutions to KRW212 trillion (up 3.4 percent from 2023). For policy funds earmarked for the five major strategic sectorsfor nurturing super gap growth for domestic industries, supporting business reorganization and industrial restructuring, promoting domestic startups and venture businesses to grow into global unicorns and so onthe authorities decided to supply 11.5 percent more than the amount provided this year, or KRW102 trillion-plus. More specifically, for the global super gap sectors, which include the semiconductor, secondary battery and display industries, a total of KRW17.6 trillion in policy finance support will be provided in 2024, up 12.8 percent from the previous year. For cultivating domestic startups and venture businesses into global unicorns, a total of KRW12.6 trillion in policy finance support will be supplied, up 39.5 percent from 2023. To help businesses better cope with the continuation of high interest rates, high inflation and high USD-to-KRW exchange rates, a total of KRW28.7 trillion in policy finance support will be provided in 2024, an increase of 8.9 percent from this year. At the meeting, FSC Vice Chairman Kim Soyoung said that the provision of policy finance support in 2024 will be implemented w
-
Dec 13, 2023
- Household Loans, November 2023
- The outstanding balance of household loans across all financial sectors increased KRW2.6 trillion in November 2023 (preliminary), showing a significant decline from the level of growth in the previous month (up KRW6.2 trillion). * Change (%, y-o-y): +2.6 (May 2023), +3.2 (Jun), +5.2 (Jul), +6.1 (Aug), +2.4 (Sep), +6.2 (Oct), +2.6 (Nov) (By Type) Home-backed mortgage loans rose KRW5.6 trillion, edging up slightly more than the previous month (up KRW5.2 trillion). Mortgage loans rose KRW5.7 trillion in the banking sector but fell KRW0.1 trillion in the nonbanking sector. Other types of loans dropped KRW3.0 trillion led by non-housing mortgage loans and savings secured loans in the mutual finance sector. (By Sector) Household loans grew at a slower rate in the banking sector and fell at a faster rate in the nonbanking sector compared to the previous month. Banks saw an increase of KRW5.4 trillion in household loans in November, which shows a slowdown from the June-September period (up KRW6.0 trillion to up KRW7.0 trillion), led mostly by policy mortgage loans and group lending for non-speculative homebuyers. Other types of loans fell KRW0.3 trillion, edging down from an increase of KRW1.0 trillion a month ago. Nonbanks saw a drop of KRW2.8 trillion in household loans, falling at a faster rate compared to the previous month (down KRW0.5 trillion), led by mutual finance unions (down KRW2.8 trillion), savings banks (down KRW0.1 trillion) and specialized credit finance businesses (down KRW0.01 trillion). Insurance companies saw a rise of KRW0.1 trillion in household loans. The declining pace of growth in household loans in November was caused by a slowdown in mortgage lending in the banking sector. However, the authorities will continue to closely monitor trends of household loans and ensure effective implementation of the household loan management measures, through introduction of a stressed debt service ratio (DSR) limit and so on. * Please refer to the attached file for
