Press Releases - Financial Services Commission

Press Releases

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Sep 10, 2020

FSC Holds 1st Consultative Body Meeting on Digital Finance

The FSC launched a public-private joint consultative body on digital finance, composed of leaders and experts representing financial sectors, big techs, fintechs and major financial labor unions, and held a kick-off meeting on digital finance via teleconference on September 10.The joint consultative body has been set up to tackle diverse challenges arising from the era of digital finance and offer balanced perspectives and solutions. The consultative body will operate four thematic working groups on (i) big tech-fintech relations, (ii) rules and regulations, (iii) financial data security and (iv) financial consumer protection.During the meeting, Vice Chairman Sohn Byungdoo spoke about the need to (i) continue regulatory reforms to promote innovation in financial services, (ii) build a fair competition environment for market participants, (iii) ensure consumer safety in digital finance, (iv) review risk factors related to financial market stability and (v) evaluate the impact of digital transformation on the society as a whole.The participants agreed on the need to have ongoing discussions on how to further develop the traditional financial industry and to promote close cooperation and win-win strategy between financial enterprises and digital platform businesses including fintechs.The joint consultative body will hold meetings regularly throughout this year and make its findings available to the public.* Please refer to the attached PDF for details.
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Sep 09, 2020

Household Loans, August 2020

The outstanding balance of household loans in all financial sectors rose KRW14.0 trillion from the previous month in August 2020 (up 6.2% year-on-year).By type, mortgage loans increased KRW6.3 trillion in August, rising KRW2.0 trillion from the previous month (up KRW3.1 trillion y-o-y). In the banking sector, jeonse loans rose KRW3.4 trillion and mortgage loans expanded KRW1.9 trillion. Mortgage lending by non-banks saw a rise of KRW200 billion from the previous month. Other types of loans went up KRW7.7 trillion as credit-based lending by both banks and non-banks rose KRW5.7 trillion and KRW2.0 trillion, respectively.The financial authorities are closely monitoring trends in household loans to see whether the recent spike is a temporary phenomenon or a more permanent trend. Based on the comprehensive assessment, the government will draw up measures to systematically manage household loans.* Please refer to the attached PDF for details.
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Sep 09, 2020

FSC Discusses Details of Consumer Credit Bill

The FSC held the 9th task force meeting on improving the personal debt management system on September 9, and unveiled key details of the Consumer Credit Bill, which include (i) promoting private sector driven debt adjustment process, (ii) mitigating excessive debt collection burdens and (iii) strengthening debtor protection measures. KEY PROVISIONSThe government’s proposal on Consumer Credit Bill will focus on establishing a delinquent debt management procedure and providing incentives to financial institutions to promote a virtuous cycle for both debtors and creditors.I. PROMOTE PRIVATE SECTOR DRIVEN DEBT ADJUSTMENT PROCESS► Provide delinquent debtors who face difficulties in repaying debts on their own the right to request debt adjustment from financial institutions► Require financial institutions to inform debtors of their right to request debt adjustment prior to taking steps toward debt collection while prohibiting financial institutions from pursuing debt collection upon such a request and having them offer a debt adjustment plan based on their own standards► Introduce debt adjustment mediation specializing businesses which will provide assistance to individual debtors during the debt adjustment processII. MITIGATE EXCESSIVE DEBT COLLECTION BURDENS► Prohibit overdue interest charge on the principal which has not yet reached maturity even in the events of default► Restrict interest hike on debts that are deemed uncollectable and transferred to a third party such as a debt collector and have creditor institutions to consider the possibility of debt recovery when drawing up and applying their own standards of extinctive prescription► Limit the number of debt collection calls while providing debtors with a right to request a restriction on debt collection calls and to file lawsuits for damageIII. STRENGTHEN DEBTOR PROTECTION MEASURES► Require original creditor institutions to evaluate how debt collection agencies treated debtors in the past and whe
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Sep 08, 2020

Vice Chairman Discusses COVID-19 Prevention in Financial Sector and Investment in K-New Deal

Vice Chairman Sohn Byungdoo presided over the 20th financial risk assessment meeting via teleconference on September 8, and discussed enhanced social distancing measures being implemented in the financial industry, the progress of the COVID-19 financial support and the newly introduced ‘Korean New Deal fund.’The following is a summary of Vice Chairman Sohn’s remarks.(COVID-19 PREVENTION) As the government decided to extend the period of enhanced social distancing rules for one more week, financial institutions should take all necessary measures to prevent the spread of COVID-19. Meanwhile, financial institutions should check their business continuity plans and ensure digital security and seamless operation of key functions in the financial system.(PROVISION OF STRONGER FINANCIAL SUPPORT) The heightened social distancing rules pose difficulties for many small merchants and SMEs. The government will continue to work on the provision of emergency lending support through its KRW175 trillion-plus pandemic relief programs. The government will work to improve the provision of the 2nd phase financial support program for small merchants by adjusting its lending cap. Financial institutions should also ensure a seamless provision of loan maturity extensions and deferment of interest payments for small merchants and SMEs in need. The government will also provide support for heavy rain and typhoon victims via one-stop financial support centers set up throughout affected regions.(MID- TO LONG-TERM PREPARATION) Aside from providing short-term financial reliefs to overcome the COVID-19 crisis, the government will also take forward-looking measures to manage risks in preparation for the future. Amid the pandemic economy, the volume of credit-based loans by households has increased significantly. As such, the government will continue to work on preemptive management of household debt. In this regard, the government has begun to look into the application of debt service ratio by
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Sep 03, 2020

Government Unveils Plans for Launching Korean New Deal Fund

The government announced its plans to create a ‘Korean New Deal fund’ and promote private sector investment in the New Deal projects on September 3.OVERVIEWThe Korean government introduced a KRW160 trillion New Deal initiative in July, which is aimed at transforming the economy for the future. Successful implementation of the New Deal projects requires not only public sector capital but also private sector investment. As such, the government decided on the plans to launch a ‘Korean New Deal fund’ in order to (i) provide strong funding support for the New Deal projects, (ii) help channel enhanced market liquidity to productive sectors and (iii) make profit sharing from the New Deal investment projects more widely available to the general public.The ‘Korean New Deal fund’ is made up of the following three key pillars.(a) Launching a KRW20 trillion public sector led New Deal fund(b) Promoting New Deal SOC investment funds(c) Boosting private sector investments in New Deal projectsKOREAN NEW DEAL FUND: 3 KEY PILLARSI. PUBLIC SECTOR LED NEW DEAL FUND(STRUCTURE) A KRW20 trillion fund will be created for 2021-2025.(a) Master fund (or Fund of Funds): KRW7 trillion will be funded by the government and policy banks over the next 5 years.(b) Feeder funds: KRW20 trillion will be raised through matching funds between public (35%) and private sector (65%) investments.(INCENTIVES) Investment risks are reduced as the public sector led master fund will absorb losses first through a subordinated investment position.(INVESTMENT TARGET) Specific guidelines on investment targets will be determined later to ensure investments in broad areas of new deal projects and relevant businesses through diverse investment methods, including equity investments and loans.(PROFIT SHARING) Provide the general public with investment opportunities in Korean New Deal protects through public offerings at lower risk.II. PROMOTE NEW DEAL SOC INVESTMENT FUNDS(STRUCTURE) Public sector-led New Deal
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Sep 02, 2020

78 Out of 237 P2P Lending Firms Found Eligible for Business Registration

The financial authorities announced on September 2 that 78 out of the current total of 237 P2P lending firms have filed proper audit reports on time to be eligible for business registration under the new P2P lending act, which came into effect on August 27. The 78 P2P lending firms that are eligible to apply for P2P lending business licenses should submit application and complete the registration process until August 26, 2021. Unregistered entities will be subject to penalties thereafter.The financial authorities will work to promote sound development of the P2P lending sector and ensure investor protection. The government will also strengthen the supervision and management of unfair and illegal sales activities in P2P lending.* Please refer to the attached PDF for details.
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Sep 01, 2020

Vice Chairman Stresses Importance of Both Virus Prevention and Effective Lending Support

Vice Chairman Sohn Byungdoo presided over the 19th financial risk assessment meeting via teleconference on September 1 to review market conditions and monitor the progress in implementing the COVID-19 financial support.The following is a summary of Vice Chairman Sohn’s remarks.(COVID-19 PREVENTION) The resurgence of COVID-19 poses risks to economic recovery as the enhanced social distancing rules put restrictions on economic activities. However, successful prevention is the most effective remedy for economic recovery. As such, the financial industry should focus on implementing preventive measures while continuing to maintain lending support for the businesses and households in need.Due to the stronger social distancing rules put in place until the end of this week, banks are operating on an hour shortened work hours and insurance companies are refraining from face-to-face sales practices. Despite these enhanced social distancing measures, financial institutions should ensure a continuity in service provision by following their own business continuity plans and through ‘untact’ channels. Financial infrastructures including trade and payment systems that are highly interconnected with each other need to be closely monitored to prevent a systemic risk. The government will work to improve the system of digital security in financial services to help financial companies more effectively respond to contingencies.(FINANCIAL SUPPORT) In response to the protracted pandemic situation, the government decided last week to extend the period of (i) the loan deferment of principal and interest payments, (ii) part of the temporary deregulatory measures and (iii) the ban on stock short sale. These measures are aimed at facilitating the financial sector to continue to maintain the role of supporting the real economy while preventing the spread of uncertainties in financial markets. The government’s emergency lending support for small merchants and for SMEs and middle market e
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Aug 27, 2020

Temporary Ban on Short Sale to be Extended for Six Months

The FSC announced its decision to extend the temporary ban on stock short sale for six months from September 16, 2020 to March 15, 2021, given market volatility amid concerns over a resurgence in COVID-19 cases. The lifting of share buyback limits for listed companies will also be extended during the six-month period.In the meantime, the FSC plans to draw up regulatory improvements to strengthen penalties on illegal short sale activities and improve the accessibility of retail investors to the short sale market.* Please refer to the attached PDF for details.
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Aug 27, 2020

FSC Chairman Discusses Improving Rules for Retail Investors

FSC Chairman Eun Sung-soo met with the heads of the Korea Financial Investment Association and major securities firms on August 27 and held talks on the current market situation, temporary ban on stock short sale, improving rules for retail investors and channeling liquidity to the real economy sectors.(CURRENT MARKET SITUATION) With the recent resurgence in COVID-19 cases, volatility has increased in stock markets. However, compared to other major economies, the stock markets in Korea have shown a tendency of faster recovery. In the recovery process, retail investors have been strong net buyers. Overseas observers attributed this rapid recovery in Korea’s stock markets to successful pandemic response and market trust for the stability of the country’s macroeconomic conditions and corporate performances. In this regard, the six-month short sale ban put in place from March 16 until September 15 may have contributed in maintaining the stability of investor sentiment for retail investors.(TEMPORARY BAN ON SHORT SALE) The six-month temporary ban on stock short-selling is scheduled to expire on September 15. Public hearings and discussions on whether to extend the short sale ban revealed that the short sale system needs to be improved. In particular, there are legitimate concerns about the legality of short-selling activities involving institutional and foreign investors while the system is less accessible by retail investors. This suggests that the public demand for more transparency and fairness in opportunities also exists on the issue of stock short sale. Measures to strengthen sanctions and penalties on illegal short-selling activities are pending at the National Assembly. In addition, the government will reexamine the role of market makers while considering their side effects. The government also plans to look into ways to promote short sale for retail investors as it expands the horizon of opportunities.(IMPROVING RULES FOR RETAIL INVESTORS) To achieve a stabl
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Aug 27, 2020

Loan Deferment of Principal and Interest Payments Extended for SMEs and Small Merchants

The FSC announced the availability of loan maturity extensions and deferment of interest payments for SMEs and small merchants until March 31, 2021. The financial authorities and financial institutions agreed to extend the duration of the repayment support for six more months due to growing concerns about a protracted pandemic situation. The decision to extend the repayment support for SMEs and small merchants hit by the COVID-19 pandemic has been reached after a series of talks, surveys and discussions with experts and relevant institutions.As such, the pandemic-hit SMEs and small merchants may reapply for deferments of principal and interest payments at relevant financial institutions.* Please refer to the attached PDF for details.
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Aug 26, 2020

FSC Decides to Extend Part of Temporary Deregulatory Measures

The FSC announced its decision to extend some of the interim deregulatory measures introduced on April 17 in order to continue to support the financial sector amid a protracted pandemic situation. The extension of interim deregulatory measures is shown in the table below. The FSC will work to ensure an effective implementation of the interim deregulatory measures while continuing to make updates regularly.* Please refer to the attached PDF for details.
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Aug 26, 2020

Legislation on P2P Lending Takes Effect

The FSC announced that the Online Investment-linked Finance Act will go into effect on August 27. The new legislation on peer-to-peer lending specifies requirements for business registration, regulations on sales practices and measures for consumer protection. It provides a crucial turning point to promote sound development of the P2P lending sector and bolster investor protection.KEY PROVISIONSI. REGISTRATION- P2P lending businesses should meet capital requirements and be registered with the FSC.II. SALES REGULATIONS- (DISCLOSURE) P2P lending platforms should disclose information about their financial management status and liquidation process.- (INTEREST RATES FEES) P2P lending firms are subject to the maximum interest rate of 24 percent prescribed by the Credit Business Act and should adhere to the standards of charging fees as disclosed on their platforms.- (PROHIBITED ACTIVITIES) High-risk practices, such as lending to P2P businesses and largest shareholders, lending loans prior to raising funds from investors, covering losses for investors and maturity mismatch between investment and loan, will be prohibited.III. OTHER REQUIREMENTS- (INVESTOR PROTECTION) To help investors make rational investment decisions and protect their funds, P2P lending platforms should (i) provide investors with detailed information about P2P loan products and confirm that investors understand the information provided to them and (ii) keep investors’ funds in depositories such as banks, securities finance companies and savings banks with equity capital of KRW1 trillion or more.- (LENDING CAP) P2P lending to the same borrower will be limited to either 7 percent of the total P2P loan balance or KRW7 billion, whichever is the smaller amount.- (INVESTMENT CAP) Specific investment limits will be applied for different investor types and investment products as shown below.IV. CENTRAL REGISTRY- A central registry will be set up to manage and maintain up-to-date information about online P2P fin
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Aug 25, 2020

New Bill on Supervision of Financial Conglomerates Moves ahead for Enactment

The government approved the bill on the supervision of financial conglomerates during a cabinet meeting on August 25, which will be submitted to the National Assembly for enactment at the end of August.KEY PROVISIONSThe proposed bill on the supervision of financial conglomerates provides a legal ground for the supervision of non-holding financial groups with financial assets of KRW5 trillion or above and contains the following key regulations.► FINANCIAL GROUPS: Financial groups are defined as those with financial assets in the amount of KRW5 trillion or more, except financial holding companies and state-owned banks.► INTERNAL RISK MANAGEMENT: An internal group-wide risk management body should be established and operated, led by the group’s top representative company to oversee the group-wide risk management policy, regulatory compliance, prudential management, etc.► INTERNAL ASSESSMENT: Financial conglomerates should conduct self-assessment on the capital adequacy to maintain their financial soundness while taking into account intra-group transactions and risk concentrations.► REPORTING DISCLOSURE REQUIREMENTS: The group’s top representative company is required to report and disclose the group-wide capital adequacy status and risk factors to the FSC, which in turn may ask for a management improvement plan if deemed necessary to prop up capital or reduce risky assets.* Please refer to the attached PDF for details.
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Aug 24, 2020

Vice Chairman Discusses Preemptive Responses to Potential Risks amid Growing Uncertainty

Vice Chairman Sohn Byungdoo presided over the 18th financial risk assessment meeting on August 24 to review market conditions and monitor the progress in implementing the COVID-19 financial support.The following is a summary of Vice Chairman Sohn’s remarks.(CURRENT MARKET SITUATION) The government’s effective response to Covid-19 and aggressive financial support have helped to maintain stability in financial markets. The KOSPI has recovered to pre-crisis levels, gaining 58.1 percent from its lowest in mid-March. Corporate bond and short-term money markets also have shown signs of overall recovery, although some low-rated companies still face difficulties in securing funds. However, the government should remain vigilant as the recent resurgence of Covid-19 cases heightens uncertainty in financial markets and the real economy. In response to the possibility of a protracted pandemic crisis, the government will closely monitor risk factors and take preemptive measures when necessary.(FINANCIAL MARKET MONITORING) With low interest rates, funds searching for higher returns have been increasingly flowing into stock and property markets, prompting a surge in asset prices. As the concentration of funds to certain assets along with growing debt could pose potential risks to financial markets, the government has been closely monitoring market activities.For the stock market to grow into a sustainable and attractive investment destination, the government needs to ensure the sound operation of the market and encourage more listings of promising companies. To this end, the government will come up with comprehensive measures for prevention, investigation and punishment to root out unfair transactions such as market manipulation, while improving regulations to help channel more funds into innovative businesses with long-term perspectives.(IMPLEMENTATION OF HOUSING MARKET MEASURES) The government has taken a series of measures to curb speculative demand in housing markets, while
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Aug 20, 2020

FSC Seeks Innovation in Financial Regulations through Regulatory Sandbox Program

The FSC announced recent progress in the operation of the financial regulatory sandbox on August 20. Through its sandbox program, regulatory improvements were made to eight specific areas with five more currently in the process of revision and fourteen more recognized as necessary for reform.The FSC will continue to promote regulatory innovation through its sandbox program to facilitate a digital transformation in the 4th industrial revolution and for the post- pandemic economy. The FSC will work to remove regulatory obstacles and ensure a steady operation of the sandbox designated ‘innovative financial services.’BACKGROUNDThe FSC has been operating a financial regulatory sandbox program since April 1, 2019 to promote competition and innovation in the financial industry. A total of 110 ‘innovative financial services’ have been designated to be included in the sandbox until now. While providing consumers with opportunities to experience more innovative financial services, the sandbox program offers more business opportunities to financial institutions, fintechs and start-ups. At the same time, the sandbox also allows a reassessment of regulations in the financial sector in a more proactive manner.The 110 sandbox designated ‘innovative financial services’ are granted exemptions from 62 financial regulations, of which improvements have been made to eight areas, revisions are taking place in five areas and plans for making improvements are being drawn up for fourteen areas.REGULATORY IMPROVEMENTS► Revision completeda) Rules on the supervision of insurance businesses revised to simplify the process of insurance renewal (Oct 2019)b) Credit Information Use and Protection Act revised to (i) break down the uniform credit bureau business category into three specific sub-categories and lower entry barriers and (ii) allow credit card companies to operate own credit bureau businesses (Feb 2020)c) Credit Information Use and Protection Act revised to (i) allow credit
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Aug 19, 2020

Vice Chairman Speaks about Importance of Maintaining Lending Support by Financial Institutions

Vice Chairman Sohn Byungdoo presided over the 17th financial risk assessment meeting on August 19 to review market conditions and monitor the progress in implementing the COVID-19 financial support programs.The following is a summary of Vice Chairman Sohn’s remarks.(CURRENT PANDEMIC SITUATION) In response to the recent spike in the number of COVID-19 infections, the government has reinstated the level-2 social distancing measures today. Preventing further waves of infection remains the most urgent task. A successful economic turnaround achieved from earlier this year was made possible through effective K-quarantine measures. In order to maintain the recovery momentum, financial institutions should closely follow the enhanced K-quarantine guidelines within their workplace.(FINANCIAL RELIEF FOR TORRENTIAL RAIN VICTIMS) The longest recorded monsoon this year (54 days) has incurred heavy damages to households and businesses. The victims of torrential rains face extra hardship amid the pandemic-related economic disruptions. In order to help the businesses and households hit by heavy rains, the government will operate one-stop financial support centers throughout the affected regions and make prompt and targeted assistance available.(STRONG LENDING SUPPORT AMID PROTRACTED PANDEMIC SITUATION) As there are concerns about a protracted pandemic situation, the government will work to finalize its decisions on whether to extend the temporary relief measures, such as loan maturity extensions, deferral of interest payments and some of the temporary deregulatory measures, within August. In an economic downturn, individual financial institutions may become passive in lending. However, each institution’s “own actions can collectively influence the overall risk in the system,” as there is a danger of a fallacy of composition suggested by a BIS report in April. Thus, it is necessary to continue to encourage all financial institutions to support lending in order to maintain the
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Aug 13, 2020

Green Finance Task Force Holds Kick-off Meeting

Vice Chairman Sohn Byungdoo presided over a kick-off meeting of the green finance task force on August 13. The task force will work to establish a monitoring system for financial risks emanating from climate change, boost investment in green industries and consider the possibility of joining international networks on green finance.The following is a summary of Vice Chairman Sohn’s remarks.(GREEN SWAN) In January this year, the BIS introduced the concept of the ‘Green Swan,’ warning about the possibility of financial crisis caused by climate change. In the BIS report, the threat of climate change is characterized by unpredictability, severe ripple effects and extensive negative externalities. As such, major countries and international organizations have come to understand the threat of climate change to the financial sector. In July 2017, the FSB Task Force on Climate-related Financial Disclosures made recommendations to help companies disclose climate-related financial risks, and in December of the same year, the Network for Greening the Financial System was launched by central banks and regulators from major economies.(PROACTIVE MANAGEMENT) Climate change can threaten the stability of the financial system in many different ways. There are physical risks that financial institutions may face as physical damages caused by climate change can have ripple effects through insurance, loans and investment. In addition, there are transition risks that can have negative effects on the stability of the financial system as a transition to low carbon economy can lead to an abrupt fall of carbon intensive industries. In this regard, the government will strengthen its efforts to monitor and identify climate change risks to maintain stability in the financial system.Financial institutions should also consider taking into account the environmental, social and governance factors alongside the traditional risk factors such as credit or liquidity risks for their asset management.
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Aug 12, 2020

FSC Chairman Meets with Heads of Financial Associations and Urges Close Cooperation

FSC Chairman Eun Sung-soo met with heads of financial associations on August 12, and held talks on the progress of the COVID-19 emergency financial support, ways to promote big techs’ entrance into the financial services industry while ensuring a framework of fair competition and the role of finance in the government’s new deal initiative and the post-pandemic economy. The following is a summary of Chairman Eun’s remarks.The pandemic-induced economic shock was effectively minimized thanks to swift provision of relief programs including maturity extensions and deferral of interest payments by financial institutions. As there are concerns over a protracted pandemic crisis, financial institutions should work to bolster their loan loss provisions and the management of financial soundness.With regard to the big techs’ entrance into the financial services industry, the financial authorities plan to set up a public-private joint consultative body made up of the government, financial institutions, big tech companies along with academia and consumer experts to facilitate discussions on the issues related to fair competition, systemic risks and consumer protection.The post-pandemic era presents both opportunities and challenges, requiring coordinated actions from the financial industry. The government’s new deal initiative aims to transform the Korean economy from a fast follower to an innovative leader. In this regard, the role of the financial industry is crucial in achieving that goal.Financial institutions should be adequately informed about the relevant measures concerning the government’s housing market stabilization policy. The financial authorities will continue to keep a close eye on violations in lending practices to prevent market disturbances.Chairman Eun also expressed his gratitude to financial companies making contributions for victims of torrential rains and urged prompt implementation of financial support to the affected households and businesses,
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Aug 12, 2020

Household Loans, July 2020

The outstanding balance of household loans in all financial sectors rose KRW9.0 trillion from the previous month in July 2020 (up 5.7% year-on-year). The household loan balance increased KRW7.6 trillion in the banking sector and KRW1.4 trillion in the non-banking sector.By type, mortgage loans increased KRW4.1 trillion from the previous month in July (up KRW1.9 trillion y-o-y). Jeonse loans rose KRW2.7 trillion in the banking sector while group lending grew at a slower rate. Mortgage loans in non-banks saw a rise of KRW200 billion from the previous month. Other types of loans went up KRW4.9 trillion as credit lending by both banks and non-banks rose KRW3.7 trillion and KRW1.3 trillion, respectively.The government will closely monitor trends in jeonse loans and credit loans in order to effectively manage household debt.* Please refer to the attached PDF for details.
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Aug 11, 2020

Vice Chairman Discusses Importance of Addressing Economic Polarization and Corporate Debt

Vice Chairman Sohn Byungdoo presided over the 16th financial risk assessment meeting on August 11 to review market conditions and monitor the progress in implementing the COVID-19 financial support.The following is a summary of Vice Chairman Sohn’s remarks.(RELIEF FOR TORRENTIAL RAIN VICTIMS) Amid a protracted pandemic crisis, damages inflicted by torrential rains brought about additional hardship to businesses and households. The FSC will work to provide financial relief programs through policy banks, such as deferment of repayments and maturity extensions to the affected businesses. In addition, the government will work to ensure prompt insurance payouts and provide support through special guarantees for SMEs and farming and fishing industries.(FINANCIAL MARKET STABILITY) The domestic financial markets quickly recovered backed by a series of market stabilization measures implemented by the government. Corporate earnings in the second quarter exceeded market expectations, and their future earnings forecasts also remain more optimistic compared to other countries. Industrial output in June rose 4.2 percent, showing signs of a recovery trend. In the meantime, rising corporate debt and widening income gap pose risks to the economy. In this regard, it is necessary to effectively manage enhanced liquidity in the market as well as corporate debt to minimize risks in preparation for a post-pandemic era.(ECONOMIC POLARIZATION CORPORATE DEBT) In order to prevent a further widening of wealth gap during the recovery process, the government will work to strengthen financial inclusiveness through debt adjustment programs. In addition, the government has been providing support to vulnerable businesses through the low-rated corporate bond and CP purchase program and the program to support auto part suppliers and subcontractors. Additional support through P-CBOs in the amount of KRW200 billion is also expected in August for the pandemic-hit businesses.With regard to corporate de
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