Press Releases - Financial Services Commission

Press Releases

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Jan 25, 2023

FSC Announces Measures to Improve Foreign Investors' Access to Korean Capital Markets

The FSC announced on January 25 a set of measures intended to improve foreign investors access to Korean capital markets by seeking bold improvements of the regulations that have been impediments to global investors investments in Korean markets. The measures include (a) abolishing the foreign investor registration requirement, (b) facilitating the use of omnibus account for foreign investors, (c) enabling more convenient OTC transactions by foreign investors and (d) expanding English disclosures in phases. Authorities expect that these measures will enhance the investment environment for foreigners on a par with international standards, which will provide important grounds to boost foreign investment in Korean markets. Background The foreign investor registration system and the constraints on foreign investors OTC (over-the-counter) transactions were introduced in 1992 when authorities began to allow foreign investors to invest in locally-listed stocks. While permitting foreigners to invest in locally-listed stocks, authorities established the total foreign investment cap and individual foreign investor cap of 10 percent and 3 percent, respectively, for each investment item, and began to require prior registration for foreign investors as well as to restrict their OTC transactions to monitor their observance. With the abolishment of foreign investors stock holding limit for ordinary companies in 1998, there currently exist foreign investors stock holding limits placed on only 33 items in key industries among 2,500 listed companies. However, the foreign investor registration system has continued to exist for the past three decades without a significant change. In addition, authorities introduced omnibus account for foreign investors in 2017 to provide a convenient way to invest in Korean markets, but it has not been utilized ever since its inception. The availability of English disclosures, which serve as essential information for foreign investors decisions on inve
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Jan 19, 2023

Financial Regulatory Innovation Committee Discusses Measures to Improve Capital Market Regulations

The financial regulatory innovation committee (FRIC) held its 6th meeting on January 19 and discussed measures to improve regulations in capital markets. The measures include (a) improving foreign investors access to capital markets through abolishment of the foreign investors registration system and phased expansion of English disclosure requirement to boost the global dynamism in domestic capital markets and (b) establishing a regulatory framework on the issuance and distribution of security tokens to permit security token offerings (STOs) and to promote development of a safe secondary market. Prior to todays meeting, authorities held a private sector advisory working group meeting on January 10 and listened to opinions related to these agendas. Summary of Remarks by FSC Chairman Kim Joo-hyun Last year, efforts to improve capital market regulations focused on system improvement to enhance the rights and interests of general shareholders, whereas this year, authorities will focus on making Koreas capital market regulations more consistent with those found in advanced markets overseas and facilitating capital markets to lead innovation in the real economy sector amid a rapidly changing environment. In this regard, the purpose of agenda items being deliberated today is (a) to break away from familiar but outdated regulatory framework that is no longer suitable for far more globalized capital markets that we currently have, and (b) to embrace newly emerging technologies into our capital markets and utilize them as an impetus for innovation. The first item, the measures to improve foreign investors access to domestic capital markets, intends to (a) abolish the foreign investor registration system introduced in 1992 and instead allow foreign investors to more freely invest in our capital markets after identification with personal passport numbers and corporate legal entity identifiers (LEIs), (b) increase the availability of OTC transactions for foreign investors and (c
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Jan 11, 2023

Government Prepares KRW80 Trillion Financial Support Programs to Help SMEs Overcome Crisis

The FSC and the Ministry of SMEs and Startups (MSS) held talks with policy financial institutions, the Korea Federation of Banks and major industry groups representing SMEson January 11 and announced their joint plans to provide financial support for SMEs to help them overcome the complex crisis situation they face currently. A total of KRW80 trillion of policy financial supports (KRW50 trillion from the FSC and KRW30 trillion from the MSS) will be newly supplied. This KRW80 trillion financial supports are designed to help them overcome the current triple-highs (interest rate, inflation and USD to KRW exchange rate) risky situation, to support growth of innovative businesses and to assist the recovery or re-start of vulnerable firms. After the announcement, the FSC and the MSS listened to complaints and suggestions from field industry groups for SMEs. Financial Support for SMEs (KRW80 Trillion) I. Background High interest rates and concerns about a global recession rapidly increase managerial burdens on SMEs, and this condition is expected to continue for some time in the near future. With the increase in loan balances, SMEs face added burdens for interest expenses due to rate hikes, and there are more SMEs struggling with increased production costs following rising in raw materials prices and global supply chain reshuffles. To improve the potential growth in our economy, SMEs need to get into the new growth sectors and secure their own competitiveness through business conversion. However, with the challenging economic situation recently, it is necessary to support the growth of innovative businesses and the resurgence or re-start efforts of vulnerable SMEs through policy finance. II. Overall Direction The government will supply a total of KRW80 trillion via policy funds (KRW50 trillion from the FSC and KRW30 trillion from the MSS) and seek system improvements in diverse areas to bolster the crisis-response capacity and growth potential of SMEs, and to expedite norm
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Dec 26, 2022

FSC Announces 2023 Policy Funds Supply Direction

On December 26, the FSC signed an agreement to supply policy funds in 2023 with policy financial institutionsand relevant ministries, and announced the fund supply direction of policy financial institutions for the next year. The agreement and funding direction were prepared as reflecting consultation results of the Policy Finance Supporting Council to strengthen co-movement between policy finance and industrial policies. Key Details of the Agreement When implementing funds supply plan in 2023, the policy financial institutions would make efforts to give priority to the items that are listed on each ministrys industrial strategy and negotiated at the Policy Finance Supporting Council. Each government ministry, having an aim to help policy financial institutions execute funds supply effectively, will work to recommend outstanding companies by sector and facilitate collaborations between relevant industries and policy financial institutions. Additionally, the policy financial institutions and ministries agreed to have frequent conversations through the Policy Finance Supporting Council meetings, which will be held on a regular basis throughout the coming year on the issues that call for mutual cooperation. Summary of Remarks by FSC Chairman Regarding the fund supply direction of policy financial institutions for the next year, the authorities will provide funds in major strategic areas as stated below. a) Fostering global super-gap industries to help Korean companies keep their dominant position in our key industries with global competitiveness (KRW16 trillion) b) Boosting new promising industries whose added value will increase following the transformation to low-carbon and digital economy (KRW13 trillion) and upgrading industrial structure to prevent a downturn in traditional leading industries and maintain their competitiveness (KRW17 trillion) c) Injecting venture capitalinto various venture businesses and SMEs at different stages of growth to foster supersized un
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Dec 26, 2022

FSC Plans to Bolster Support to Promote Sustained Growth of Fintech Businesses

The FSC announced a set of measures to strengthen support for fintech businesses, which is confirmed after discussion and deliberation at the 5th financial regulatory innovation committee meeting held on December 20. Against the backdrop of the current industrial situation where fintech businesses face funding shortages amid interest rate hikes, waning impetus of industrial growth and difficulties in expanding their business into overseas markets, these measures will expectedly boost multiple facets of fintech business supports, such as funding or promotion of startups. Key Measures I. Strengthen Support through Investment and Policy Funds a) (Increasing the Size of Fintech Innovation Fund) The size of the fintech innovation fund, initially planned as KRW500 billion for four years (2020-2023), will be increased to KRW1 trillion by adding KRW500 billion for another four years (2024-2027). Authorities will improve operation methods by (a) ensuring continuous operation of the early-stage fintech investment fund, which has been operated intermittently, and (b) newly creating a commercialization fund intended to make investment in those who seriously prepare business expansion at the commercialization stage. b) (Increasing Support through Policy Financial Institutions) Tailored support for fintech businesses will be made in the form of loans and guarantees from policy financial institutions in the amount of at least KRW200 billion a year. c) (Establishing Comprehensive Fintech Support System) Authorities will set up and operate Fintech Support Council, consisting of representatives form 14 institutionsthat currently operate their own fintech support programs, to make their support programs more systematic and effective. The participating institutions will establish a common databaseto monitor the growth history as well as the record of support provided for each fintech business. A fintech focused investor relations (IR) event will be held at least once every half a year.
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Dec 19, 2022

Authorities Meet with Banks to Discuss Resumption of Bank Bond Issuance

The FSC held a meeting with the related authoritiesand the banking sector on December 19 to examine the banking sectors lending and borrowing situation and discuss resumption of bank bond issuance. At the meeting, participants shared a common assessment that financial markets such as the bond market and foreign exchange market are gradually returning back to stabilityas a result of expectations for a slower pace of monetary tightening at home and abroad, as well as the government and financial institutions initiative to stabilize the market. However, as there still exist uncertainties in financial markets concerning price levels, trends of economic slowdown and the pace of monetary tightening in major advanced economies, participants reached to the same view that it is still vital to maintain a state of vigilance in responding to market situations. Financial authorities expressed appreciation for the active market stabilization efforts the banking sector showedand said that authorities will continue to make available policy-based support programs (bond market stabilization fund, corporate bond and CP purchase program, etc.) to ensure market stability. At todays meeting, participants discussed how to restart bank bond issuance, which has been refrained so far for the goal of maintaining stability in the bond market. The banking sector raised the issue that there currently exist diverse types of demands for issuing bank bonds, for instance, to deal with their outstanding bonds coming to maturity soon, to respond to the outflow of consumer deposits, and to expand corporate loans, etc. In particular, considering the recent signs toward stabilization in the bond market and the year-end lending and borrowing needs of banks, the banking sector suggested the gradual restart of bank bond issuance at least for the purpose of refinancing bonds that are about to mature. Taking into account the latest supply and demand situation of bond markets as well as expert opinions, partic
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Dec 01, 2022

Authorities Plan to Disclose Identity of Entities Committing Unfair Trading Practices

As a way to bolster prevention of unfair trading practices in capital markets, the FSC plans to disclose the identity (corporate name, etc.) of those who violate capital market regulations such as restriction of short sales and prohibition of market disturbances and receive a disposition of a penalty surcharge or an administrative fine for that violation. This measure shall apply to the violators receiving sanctions at the 22nd regular meeting of the Securities and Futures Commission (SFC) scheduled to be held in December 2022. Their identities will be announced through the FSC website in February 2023. Background The FSC has gradually extended the scope and detailsstock items, dates and penaltiesof disclosure of the SFC resolutions on sanctions that are made available for unfair trading practices in capital markets. However, the identity of violators is not being disclosed currently due to the potential misuse of their corporate or individual financial transaction information by a third party. Nonetheless, there is a growing need to secure effectiveness of sanctions measures imposed on unfair trading activities in capital markets such as illegal short sales. Therefore, after a careful consideration, the FSC decided to expand the scope and details of disclosure of sanctions by unveiling the identity of violators. Disclosure of Identity of Entities Violating Capital Market Regulations If an investigation led by financial authorities ends up with sanctionsof imposing a penalty surcharge or an administrative fine, the identity (corporate name, etc.) of the violator will be unveiled. Although the violators that become subject to sanctions are mostly corporate entities, in some cases, individuals also become subject to sanctions when they commit unfair trading practices such as activities of disturbing market order. If unfair trading activities in capital markets under the investigation led by financial authorities are subject to criminal punishment,in consideration of t
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Nov 28, 2022

Authorities Hold Policy Seminar on Making Improvements to Capital Market Regulations

The FSC, the Korea Exchange (KRX) and the Korea Capital Market Institute (KCMI) jointly held a policy seminar for alleviation of the Korea discount on November 28. The theme was improving the consistency of Korea and global capital markets rules and regulations. In his opening remarks, FSC Vice Chairman Kim So-young outlined the governments policy direction for regulatory improvements in Korean capital markets. The policy draft has been prepared by the FSC through a taskforce with private sector experts. Summary of Vice Chairmans Remarks In our capital markets, there are outdated regulations and unreasonable practices that have been first introduced decades ago and kept for too long without being scrutinized for their validity, some of which are nonexistent in the economies with advanced financial markets. These regulations and practices made sense and were considered necessary at the time of their introduction. However, in order to establish a system suitable for the current status of Korean capital markets and to satisfy the needs of a new era, our capital markets should bravely break the familiar but outdated framework and undertake reforms. (Registration for Foreign Investors) Foreign investor registration has long been regarded as one of major outdated regulations that deviate from global norms. This regulation requires foreign investors registration before trading listed securities in the Korean capital markets. Under the registration scheme, foreign investors are issued investment registration certificates, and all of their transaction data are recorded. This rule has been in force for more than 30 years since Korean capital markets were opened to foreign investors in 1992. Suppose that we acquire or dispose of listed stocks in a foreign country. If we had to register with the countrys financial authority in advance and if each individuals transaction records are piled up in real-time, it will induce not only procedural but also psychological burden. In advan
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Nov 09, 2022

FSC Chairman Meets with Heads of Banks and Discusses Market Stabilization Measures

FSC Chairman Kim Joo-hyun met with the heads of Korea Federation of Banks and twenty major banks on November 9 and held talks on financial market stabilization efforts. At the meeting, participants shared their outlook and views on financial market conditions and discussed (a) the banking sectors constructive role and action plan for market stabilization and (b) current difficulties in banks financing and operation of funds as well as ways to resolve them. Summary of Remarks by FSC Chairman Rapid increases in interest rates are continuing to put stress on our economic situation. However, unlike in the previous crisis situations such as thefinancial crisis in 2008 and the COVID-19 pandemic in 2020, it is now difficult to handle this situation by lowering interest rates or expanding fiscal spending. Now is the time for the financial industry and the government to come together and respond to difficulties by effectively making use of all available capacities in our economy. Under these circumstances, the banking sector has thus far provided a steady reinforcement to support vulnerable groups and supply liquidity in response to the recent turmoil in money market and bond market. The five major financial holding companies are making efforts to stabilize markets through their support plan announced on November 1. To sustain stability in financial markets, it is necessary to look closely at both the trees and the forest as stated earlier by former Fed chair Ben Bernanke. In this regard, the banking sector, as the core of our financial system, should provide a leading role to stabilize market for the whole financial system over the banking sector. First, aside from abrupt rate hikes, there are concerns about credit crunch that may result from the collapse of market confidence. In this regard, the combined effects of the governments market stabilization measures and the banking sectors efforts to stimulate the flow of funds will significantly help businesses and micro-enterp
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Aug 18, 2022

KoFIU Cautions Virtual Asset Users against Unregistered Virtual Asset Service Providers

The Korea Financial Intelligence Unit (KoFIU) announced on August 18 that it has notified illegal business activities of 16 unregistered Virtual Asset Service Providers (VASPs) to the investigative authority. The KOFIU urged virtual asset users to practice extra caution in order to avoid incurring damages that may result from their transactions with unregistered VASPs. I. Unregistered Operation of Foreign-based VASPs in Domestic Market The KoFIU has notified the investigative authority about the violation of unregistered business activities of 16 foreign-based VASPs* carrying out business activities intended for domestic consumers pursuant to the Act on Reporting and Using Specified Financial Transaction Information (the Act hereinafter). * KuCoin, MEXC, Phemex, XT.com, Bitrue, ZB.com, Bitglobal, CoinW, CoinEX, AAX, ZoomEX, Poloniex, BTCEX, BTCC, DigiFinex, Pionex The 16 foreign-based VASPs were found to have been engaged in business activities targeting domestic consumers by offering Korean-language websites, having promotional events targeting Korean consumers and providing a payment option that supportsthe purchase of virtual assets using credit cards. On July 22, 2021, the KoFIU notified foreign-based VASPs that have business operations targeting Koreans about their obligation to registertheir business with the authority pursuant to the Act. However, the 16 aforementioned entities were found to have business operations targeting Koreans without obtaining a registration and thus the authorities plan to take necessary measures. II. Actions Taken on Unregistered VASPs a) The KoFIU has notified the investigative authority about the violation of registration duties (under the Act) of 16 unregistered VASPs, and plans to inform FIUs in their respective countries about their violation. For illegal business activities of unregistered entities, maximum 5 years of imprisonment or up to KRW50 million of fine can be imposed with a restrictionfor registering as a VASP in dome
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Aug 08, 2022

FSC Unveils Financial Policy Agenda of the New Administration

FSC Chairman Kim Joo-hyun presented the new administrations financial policy agenda to President Yoon Suk Yeol on August 8 which focuses on preemptive handling and management of crisis and providing steady reinforcement for the revitalization of the financial industry and economy beyond crisis. Financial Policy Agenda I. Financial Measures to Stabilize Peoples Livelihoods in Vulnerable Sectors a) Background - Pursue prompt implementation of the KRW125 trillion-plus financial measures to help stabilize peoples livelihoods - Seek additional measures in preparation for SMEs facing difficulties b) Key tasks [Task #1] Effective implementation of the financial sector measures to help stabilize peoples livelihoods Authorities will strengthen efforts for promotion and consultation activities and establish a close-knit coordination network with relevant government ministries and institutions. - Strengthen promotion and consultation efforts customized for each beneficiary group to help ensure that there is no one left out from receiving assistance due to the lack of awareness about the availability of the support programs - Improve synergetic effects (consultation funding support offered) through collaboration with the small merchant support program provided by the Ministry of SMEs and Startups - Maintain close communication with the financial sectors and media. [Task #2] Response to potential management and financing difficulties of Small and Medium-sized Enterprises Authorities will prepare financial support measures to help resolve the difficulties of SMEs such as increases in inflation, interest rates and prices of raw materials. 1) Make newly available (KRW6 trillion) government-backed fixed rate loans with low interest rates 2) Provide preferential interest rate support for loans and guarantees to businesses that are highly dependent on raw material imports or those experiencing difficulties due to disruption in global supply chain 3) Make adjustment to the accounting r
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Jul 28, 2022

Improving Short Selling System and Strengthening Oversight and Punishment for Illegal Activities

FSC Chairman Kim Joo-hyun presided over a joint meeting with relevant institutionson July 28 and announced the measures to improve the stock short selling system and strengthen oversight and punishment on illegal short selling activities. At the meeting, participants shared the same view that investors growing concerns about the use of short selling in illegal transactions and the ineffective oversight and punishment on illegal short sale activities need to be resolved in order to restore investors trust in domestic stock markets.In this regard, through joint efforts, authorities agreed to strengthen oversight, detection and punishment of illegal short selling activities and promptly pursue improvements to the short selling system to stamp out illegal short selling activities. Overview of the Meeting A joint meeting to stamp out illegal short selling activities was held on July 28 chaired by FSC Chairman Kim Joo-hyun. As investors mistrust toward the short selling system continues to grow with recent declines in global stock markets, the meeting was held as the authorities deemed it necessary to (a) promptly address the need to bolster oversight and punishment over market disturbing activities in capital markets through illegal short selling activities and short selling-based price rigging and (b) discuss and announce the measures for bringing about prompt improvements to the short selling system to help address the issues raised by investors. Background Short selling involves a sale of borrowed stocks. As an investment strategy aimed at gaining profits or avoiding losses when stock prices fall, it is an investment method generally allowed in markets across all advanced economies.Short selling helps to increase market liquidity and prevent formation of bubble in stock prices. However, in the wake of the COVID-19 crisis in March 2020, a short selling ban was introduced to help ease market anxieties. Since the introduction of short selling ban, various improvements ha
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Jun 20, 2022

2022 Korea Fintech Week to be Held in September

The FSC announced that the 2022 Korea Fintech Week, a global fintech exhibition, will be held from September 28 to 30 this year in cooperation with relevant institutions. With the availability of both offline and online participation, the Korea Fintech Week will help accelerate innovation in the fintech industry. (Offline) Three days of fintech IR events, investor consultation, job mentoring, fintech-themed seminars will help with investment promotion and employment opportunities. (Online) Exhibition halls, learning programs, experience programs and seminars will be operated online through metaverse. For participation in exhibition halls, idea contest, IR competition and investment consultation, please see detailed information below. Overview of 2022 Korea Fintech Week (Theme) Fintech, Tearing Down Barriers in Finance The 2022 Korea Fintech Week will be operated so as to help expand and replicate the innovation and growth of the fintech industry in close cooperation with relevant institutions. (Program) Offline and online events will be held simultaneously. a) (Offline) The 2022 Korea Fintech Week will provide a variety of venues for fintech firms, investors, relevant institutions and the public to come together through seminars, consultations, exhibitions and other standing programs. - (Opening Ceremony) Sharing outcomes of the fintech policy and presenting policy direction for innovation. - (Seminar) Seminars organized around specific fintech areas such as blockchain, data, etc. - (Investment) Providing opportunities for fintechs to attract investment through fintech IR, investment consultation, etc. - (Exhibition Halls) Introducing fintech services launched by fintech businesses and financial institutions. - (Programs for Participation) Providing an opportunity for prospective entrepreneurs to pitch ideas about fintech business models through idea contest and mentoring and giving fintech jobseekers a chance to have consultation. b) (Online) Various online program
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Jun 09, 2022

Financial Authorities Hold Meeting to Review Risks in Insurance Sector

The FSC held a meeting on June 9 to review risks and discuss response measures in the insurance sector amid increasing volatility in financial environments due to increases in interest rates and the exchange rate.For insurance companies declining levels of risk-based capital (RBC) ratios as a result of steep rate hikes causing an expanded level of losses on valuation of bonds, the authorities have prepared a measure for providing a buffer to release a portion of surplus that insurance companies may recognize as available capital for calculating RBC ratios. Key Risk Factors Response Measures The meeting discussed in depth the risk factors in global financial markets such as interest rate hikes and exchange rate volatility following monetary tightening by major economies amid inflation pressure and prolonging war in Ukraine and dealt with both long- and short-term response measures. I. Prepare Buffer for Declining RBC ratio In response to declining RBC ratios following interest rate hikes, the authorities will recognize inclusion of the LAT(liability adequacy test) surplusinto the available capital for the calculation of RBC ratios.The current RBC system based on the difference between the mark to market valuation of assets and historical cost valuation of liabilities results in a decline in RBC ratios in times of rising interest rates as the new method only incorporates losses on valuation of assets into available capital. However, when applying this measure, reductions in insurance liabilities as a result of interest rate hikes are also incorporated as available capital, thereby providing a buffer to the decline in RBC ratios. Insurers will be able to include (a) 40 percent of the LAT surplus to their available capital (b) within the limit of losses on valuation of bonds available for sale. a) In times of interest rate fall, 40 percent of the LAT surplus reserve,which represent an increase in insurance liabilities, is deducted from the available capital. Considering
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Mar 31, 2022

FSC to Seek Gradual Normalization of Temporary Deregulatory Measures in Financial Sectors

The FSC held discussions on the current status and further plans for the temporary easing of financial regulations during its regular meeting held on March 30. The FSC reviewed the status on the 25 deregulatory measures and decided to grant a three-month grace period on the 7 deregulatory measures that are scheduled to expire at the end of March.After a review, considering the recently extended availability of the loan maturity extension and payment deferment program for SMEs and small merchants, the FSC decided to provide a three-month grace period on all 7 deregulatory measures and to take a two-pronged approach to normalization after the grace period expires by carrying out (a) a step-by-step normalization of the total liquidity coverage ratio (LCR) in the banking sectorand (b) an immediate rollback on the other 6 measures that are expected to place not much compliance burden on the financial sector. Background The FSC and the FSS have introduced the measures for temporary easing of financial regulations in response to COVID-19 in April 2020.The FSC has held decisions on these 25 temporary deregulatory measures including regulations on capital requirement, liquidity requirement and those relating to business operation over four regular meetings.Thus far, the temporary deregulatory measures have provided the financial industry with the capacity to actively implement the loan maturity extension and payment deferment for SMEs and small merchants hit by the COVID-19, while making a contribution both directly and indirectly to the expansion of capital flows to support the real economy via corporate lending. Need for Gradual Rollback Key Details The FSC decided that it is time to begin a gradual normalization of the temporary deregulatory measures as the size of total credithas grown and in order to be prepared for a potential default with these measures being in place for about two years. In its decision, the FSC also considered factors such as global interest rate hi
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Mar 02, 2022

FSC Changes Rules to Promote Overseas Business Expansion of Financial Institutions

The FSC approved a set of regulatory revisions that will help facilitate financial institutions overseas business operation and investment activities at the 4th regular meeting held on March 2. The measures are aimed at promoting financial institutions overseas business expansion by easing some of the reporting and filing duties when investing overseas through a foreign direct investment (FDI) or a branch office. Key Revisions a) FDIs made through offshore funds in the amount of up to USD20 million annually will be exempted from the advance reporting requirement. Previously, FDIs through foreign funds were subject to the advance reporting requirement regardless of the investment amount. This rule will be changed to allow ex post factor reporting within one month for FDIs of USD20 million or less. b) Financial companies investing in equity shares of foreign funds (10 percent or more) will no longer be required to file a report whenever their shareholding status changes due to changes in investments made by other shareholders. Financial companies will be exempted from reporting any change in their ownership status after making initial investment when there is no change to be reported in the actual amount of their investment. c) Some of the ordinary business operations by offshore branch offices, such as real estate and stock trading and loan transactions lasting longer than a year, will no longer be subject to the advance reporting requirement. The revised rule will allow financial companies to report these activities afterwards within one month from such events taking place. The revised rules will become effective from March 3, 2022. * Please refer to the attached PDF for details.
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Feb 15, 2022

Government Appoints KIC Chief as Honorary Ambassador for Financial Cooperation

The government announced the appointment of Jin Seung-ho, chairman and CEO of the Korea Investment Corporation, as the countrys honorary ambassador for financial cooperation on February 15. The honorary ambassador for financial cooperation will help promote Koreas financial markets to foreign investors and work to draw overseas financial companies to establish businesses here in Korea according to the 5th three-year plan for Koreas financial hub policy announced by the FSC in May 2020. Mr. Jin Seung-ho is an expert in international finance and has previously served in key positions at the Ministry of Economy and Finance. The new honorary ambassadors one-year term will begin after an official approval from the President. * Please refer to the attached PDF for details.
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Dec 23, 2021

29 Out of 42 Virtual Asset Service Providers Granted Business Registration Approval

The Korea Financial Intelligence Unit (KoFIU) announced the result of business registration review on virtual asset service providers on December 23. Out of 42 VASPs that have filed registrations with the authority, the KoFIU announced that 29 entities (24 crypto exchangesand 5 wallet or depository service providers) have gained approvals with the decision on 5 entities being postponed and 8 others withdrawing their decision to register. The KoFIU has carried out a review on the registrations filed by 29 crypto exchanges and 13 wallet or depository service providers between September 25 and December 23 led by a review committee made up of experts from various professional backgrounds. Over the course of the registration process, the authorities have made available consulting and assistance to VASPs on a continuing basis while closely monitoring illegal business activities by unregistered entities and notifying foreign-based VASPs with operations targeting Korean users about their duty to register. In the registration review process, the authorities have looked closely at whether the businesses are adequately prepared to comply with the anti-money laundering (AML) duties. Those that are subject to reevaluation due to inadequate preparation for AML duties will be given one month to demonstrate a proof of adequate AML preparation. The registered entities are subject to the AML duties specified under the Act on Reporting and Using Specified Financial Transaction Information, including customer due diligence, suspicious transaction report and the travel rule. The KoFIU will work to ensure transaction transparency in the virtual asset market by carrying out site inspection and supervision on VASPs on a regular basis. * Please refer to the attached PDF for details.
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Dec 22, 2021

FSC Unveils Work Plan for 2022

The FSC announced its work plan for 2022 which will be focused on maintaining stability in the financial system, promoting advancement of the financial industry, supporting an overall growth of the economy and boosting financial inclusion. In order to achieve these goals, the FSC plans to (a) preemptively manage financial imbalances and work on an orderly exit and normalization from the pandemic-era policy, (b) seek innovation in the regulatory framework to promote digital transformation in the financial industry, (c) provide support for structural changes taking place in the economy and (d) ensure tailored support for vulnerable groups and enhance consumer protections. Key Achievements in 2017-2021 I. Stability in the Financial System The FSC has worked to maintain stability in the financial system by pursuing a consistent policy on household debt management and preemptively responding to the COVID-19 pandemic. In terms of household debt management, the pace of the household debt growth that has seen acceleration in 2020 has come down to a stable level in the second half of 2021 with improvements also seen in the quality of debt structure. The FSC has established groundwork for stably managing potential debt-related risks in the future. In response to the COVID-19 pandemic, the FSC has made available financial supports through the KRW175 trillion-plus support programs intended to help SMEs and small merchants as well as suppliers in the key industry sectors. II. Broadened Horizon of the Financial Industry The FSC has helped expand the horizon of the financial industry by promoting competition as well as convergence between different sectors. Through regulatory improvements, the FSC has lowered entry barriers for different types of financial companies and fintech firms and promoted innovation and digital transformation in the financial industry by introducing open banking and MyData services as well as an integrated public-sector financial open data platform. III. P
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Dec 07, 2021

Revised Enforcement Decree of FSCMA and Subordinate Rules to Take Effect from December 9

The government approved the revisions to the Enforcement Decree of the Financial Investment Services and Capital Markets Act and its subordinate rules at a cabinet meeting held on December 7. The revisions prescribe specific details mandated by the revised FSCMA and provide legal basis for enforcement. The revisions will take effect from December 9, 2021. Key Details a) When an already listed securities firm wishes to add a business unit that is considered to be in an equivalent business area, the authorization process will be simplified and streamlined by requiring the company to register the additional unit instead of having to go through an approval process by submitting a business plan and qualifications of large shareholders. b) When a Korean branch of a foreign-based securities firm wishes to change its organizational status from a branch office to a subsidiaryor vice versathe approval process will be simplified by granting an exemption from an assessment of its business plan, requirements for human resources and electronic and other physical facilities and qualifications of large shareholders. c) When a securities firm becomes insolvent, investor deposits will be paid back to its customers by a deposit holding institution instead of the insolvent securities firm in order to guarantee a speedy and safe refund process. d) The severity of the fine for violating the large shareholding reporting rule (the 5% rule)will be increased to more effectively induce compliance. e) Companies quarterly disclosure burdens will be eased by requiring them to list only key material information in their quarterly reports while other types of information can be updated only when changes have occurred. f) When licensing procedure of a financial investment business has been suspended due to a criminal investigation of its owner or large shareholder, the authorities will review the viability of resuming the licensing process every six months or when considered appropriate even before
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