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Jul 09, 2025
- Household Loans, June 2025
- In June 2025, the outstanding balance of household loans across all financial sectors increased KRW6.5 trillion (preliminary), rising at a faster pace compared with the previous month (up KRW5.9 trillion). (By Type) Home-backed mortgage loans rose KRW6.2 trillion, growing at a faster pace compared with the previous month (up KRW5.6 trillion). Banks saw an expanded pace of growth in mortgage loans (up KRW4.1 trillion up KRW5.1 trillion), while nonbanks saw a somewhat slower pace of growth from the previous month (up KRW1.5 trillion up KRW1.1 trillion). Other types of loans went up KRW0.3 trillion, growing at a slightly slower pace compared with the previous month (up KRW0.4 trillion), with credit loans rising at a slower pace (up KRW0.8 trillion up KRW0.7 trillion). (By Sector) In June, household loans in the banking sector rose at a faster pace compared with the previous month (up KRW5.2 trillion up KRW6.2 trillion). Banks own mortgage loan products grew at an expanded pace (up KRW2.5 trillion up KRW3.8 trillion), while policy-based loans grew at a slightly slower pace (up KRW1.6 trillion up KRW1.3 trillion). Other types of loans in the banking sector rose at a similar pace compared with a month ago (up KRW1.1 trillion up KRW1.1 trillion). In the nonbanking sector, household loans increased KRW0.3 trillion, rising at a slower pace compared with the previous month (up KRW0.7 trillion). Mutual finance businesses (up KRW0.8 trillion up KRW1.1 trillion) saw an expanded pace of growth, while savings banks (up KRW0.3 trillion down KRW0.04 trillion) saw the growth trend shifting back down. Insurance companies (down KRW0.3 trillion down KRW0.2 trillion) saw a somewhat slower pace of decline, while specialized credit finance businesses (down KRW0.1 trillion down KRW0.6 trillion) saw a faster pace of decline compared with the previous month. (Assessment) The expanded pace of household loan growth in June can be seen as a consequence of increased housing transactions from Febr
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Jul 09, 2025
- Authorities Lay Out Plans to Stamp Out Unfair Trading Activities in Stock Markets
- The Financial Services Commission, the Financial Supervisory Service, and the Korea Exchange introduced joint measures to stamp out unfair trading activities in stock markets on July 9. The financial authorities have held a series of meetings and discussions in the past month to seek ways to strengthen initial response and ensure strict punishment on unfair trading activities (price manipulation, etc.). The following measures have been prepared based on these discussions. Key Measures I. Establish a Joint Response Team to Root Out Stock Price Manipulation Under the current response system for unfair trading activities, the examination (KRX) and investigation (FSC FSS) functions are dispersed across different organizations, and they each have different levels of authority, for instance, to check financial (securities or bank) accounts or force investigation. This led to the problem of delay in responding to cases which required urgent actions from the authorities. Thus, in order to boost the efficiency in examination and investigation, the FSC, the FSS, and the KRX plan to establish a joint response team to root out stock price manipulation. The joint response team, a collaborative operation among the FSC, the FSS, and the KRX, will be set up at the KRX with an aim to bolster the initial response function of KRXs market surveillance committee. The joint response team will work under the same workspace and perform investigations on important cases that require urgent response together from the early stage. In the process, each organization (FSC, FSS, and KRX) will make utmost use of its investigative authority to promptly carry out investigations on cases associated with (a) frequent rule-breakers, (b) largest shareholder or company executives, (c) use of false information on social media, etc. II. Upgrade KRXs Surveillance System to Make It More Individually-focused (from account-based system currently) and Adopt AI Technology in Market Surveillance Under the current
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Jun 27, 2025
- Authorities Introduce Measures to Strengthen Household Debt Management Centered on Seoul Metropolitan Area
- The Financial Services Commission held a meeting on household debt on June 27 with officials from related government ministries, industry groups, and housing loan and guarantee institutions. At the meeting, officials discussed the expanding trend of household debt triggered by mortgage loans in the Seoul metropolitan area and announced a set of measures that will help to strengthen the management of household debt especially in the Seoul metropolitan area. Household Loans In recent months, the outstanding balance of household loans has been growing since April due to the rising volume of housing transactions in the wake of temporary lifting of the land transaction permit scheme in Seoul and expectation for rate cut, and this trend has continued into June. With the rise in the volume of housing transactions in the Seoul metropolitan area,mortgage loans in this region has grown rapidly in particular. Key Measures I. Bolstering Total Management Target Considering the economys nominal GDP growth forecast and the recent trend of household debt growth, the annual target volume of household loanswhich include both financial companies own loan products and government-sponsored policy loanswill be revised down from the current level. For financial companies own loan products across all financial sectors, the total annual target volume will be reduced to 50 percent of the previous level effective from the second half of this year. For policy loans, the annual supply plan will be 25 percent less than the previously set level. II. Applying Banks Self-regulatory Measures in All Other Financial Sectors The implementation of self-regulatory household debt management measures taken up by banks on a voluntary basis will be expanded to all other financial sectors. First, in the Seoul metropolitan area and/or speculation regulated zones,current homeowners (multiple-house owners or single-house owners without the intention to sell currently owned house) will not be allowed to purchase
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Jun 16, 2025
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Jun 11, 2025
- Household Loans, May 2025
- In May 2025, the outstanding balance of household loans across all financial sectors rose KRW6.0 trillion (preliminary), growing at a faster pace compared with the previous month (up KRW5.3 trillion). (By Type) Home-backed mortgage loans increased KRW5.6 trillion, rising at a faster pace compared with a month ago (up KRW4.8 trillion). The faster pace of growth was seen in both the banking (up KRW3.7 trillion up KRW4.2 trillion) and nonbanking (up KRW1.1 trillion up KRW1.5 trillion) sectors. Other types of loans increased KRW0.4 trillion, rising at a slightly slower pace compared with the previous month (up KRW0.5 trillion), as credit loans expanded at a slower rate (up KRW1.2 trillion up KRW0.8 trillion). (By Sector) In May, household loans in the banking sector rose at a faster pace compared with the previous month (up KRW4.7 trillion up KRW5.2 trillion). Banks own mortgage loans grew at an expanded level (up KRW1.9 trillion up KRW2.5 trillion), while policy-based loans grew at a slightly slower pace (up KRW1.8 trillion up KRW1.6 trillion). Other types of loans in the banking sector rose at a similar pace compared with a month ago (up KRW1.0 trillion up KRW1.0 trillion). In the nonbanking sector, household loans edged up KRW0.8 trillion, rising at a faster pace compared with the previous month (up KRW0.5 trillion). Mutual finance businesses (up KRW0.3 trillion up KRW0.8 trillion) saw a faster pace of growth, while savings banks (up KRW0.4 trillion up KRW0.3 trillion) saw a slower pace of growth. Insurance companies (up KRW0.01 trillion down KRW0.3 trillion) saw household loan growth shifting back lower, while specialized credit finance businesses (down KRW0.1 trillion down KRW0.1 trillion) maintained the same level of decline compared with a month ago. (Assessment) The expanded pace of household loan growth in May can be seen as a consequence of the increase in housing transactions from February this year. As the volume of housing transactions continues to rise, it
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May 20, 2025
- KoFIU Unveils H2 2024 Survey Result on Virtual Asset Service Providers
- The Korea Financial Intelligence Unit (KoFIU) conducted a survey on 25 registered virtual asset service providers (VASPs) to assess the current state of the domestic virtual asset market and keep relevant statistics up to date. Survey Overview (Respondents) 25 VASPs(17 exchange service providers and 8 custody and wallet service providers) (Survey Method) Data collected from VASPs (Period Covered) July 1, 2024 to December 31, 2024 Key Survey Findings for H2 2024 The price increase in virtual assets and expansion of market size observed from the second half of 2023 in the domestic virtual asset market accelerated in the second half of 2024. Compared with the first half of the same year, average daily trading volume (up KRW1.3 trillion or 22%), total operating profits (up KRW160.2 billion or 28%), and the number of users eligible to trade (up 1.92 million or 25%) all went up. In particular, market capitalization (up KRW51.2 trillion or 91%) and total amount of deposits (up KRW5.7 trillion or 114%) rose significantly. However, during the same period, the coin-only exchange market experienced declines in average daily trading volume (down KRW 660 million or 81%), market capitalization (down KRW 27.6 billion or 19%), and total operating profits (down KRW 1.1 billion or 8%) due to significant concentration in the KRW-based exchange service providers and termination of business operation of certain coin-only exchange service providers. External transfers of virtual assets to the registered entities under the travel rule grew somewhat (up 4%), while those transferred to the whitelisted overseas entities and personal digital wallets saw a notable increase (up 38%). The total size of virtual assets in custody, wallet, and staking services (down KRW 12.3 trillion or 89%) and their number of users (down 196,000 or 99%) both declined significantly as more service providers terminated business operation and the base price of certain custody service providers went down. * Please re
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May 20, 2025
- FSC Announces Plan to Implement Third-stage Stressed DSR Rule as Scheduled from July 1
- The Financial Services Commission held a meeting on household debt with officials from related government ministries, industry groups, and five major banks on May 20. At the meeting, officials reviewed recent household debt situation and risk factors and discussed detailed measures for implementing the third-stage stressed debt service ratio (DSR) rule as scheduled from July 1, 2025. Moreover, the financial authorities, officials from related ministries, and financial industry groups vowed to more closely communicate and cooperate to ensure stable management of household debt. Household Loans In 2025, the trend of household loan growth remained stabled in the first quarter. However, in April, the outstanding balance of household loans across all financial sectors increased KRW5.3 trillion from the previous month (up KRW0.7 trillion), growing at a notably faster pace. In April, home mortgage loans grew at a faster pace (up KRW3.7 trillion up KRW4.8 trillion), and other types of loans including credit loans shifted back up from the decline seen a month ago (down KRW3.0 trillion up KRW0.5 trillion). This pattern of growth appears to be continuing in May. At the meeting, officials assessed that the overall growth of household loans in April was mainly due to the recent rise in housing transactions pushing up mortgage loans and the low base effect from the previous month where sales or cancellation of nonperforming debt took place at the end of the first quarter. Considering the expectation of interest rate cuts in the future and the effects of the scheduled increase in deposit insurance coverage from September 1 this year on nonbank financial institutions, officials emphasized the need to ensure a preemptive management over household debt. Implementation of Third-stage Stressed DSR Rule After coordinating with related authorities, the FSC decided to implement the third-stage stressed DSR rule* as scheduled from July 1, 2025. * The stressed DSR rule imposes a certain lev
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May 15, 2025
- Rule Change Proposed to Increase Maximum Deposit Protection Coverage to KRW100 MN from September 1
- The Financial Services Commission issued a preliminary notice of legislative revisions intended to raise the maximum deposit protection coverage on May 15. The revision proposal will enter a public comment period from May 16 to June 25, 2025. For the first time in 24 years, the revised rule will increase the maximum deposit protection coverage to KRW100 million from the current level of KRW50 million from September 1, 2025. The increased deposit protection limit will apply to both banks and savings banks whose deposit protection is covered by the Korea Deposit Insurance Corporation (KDIC) and mutual finance institutionswhose deposit protection is covered by their own federation funds. Thus, from September 1 this year, depositors are guaranteed deposit protection of up to KRW100 million in the event of a financial company turning insolvent or bankrupt and becoming unable to pay their deposits. This will not only help to strengthen protection for depositors but also alleviate the inconvenience of having to spread out savings across multiple financial institutions. Moreover, it will raise the domestic deposit protection level on a par with those seen in major overseas countries and push up the overall volume of insured deposits, which will help to shore up confidence about financial market stability. Prior to the Asian financial crisis in 1997, there were varying degrees of deposit protection coverage observed by different financial sectors, ranging between KRW10 million and KRW50 million. However, in the wake of the 1997 Asian financial crisis, blanket guarantees were temporarily introduced across all financial sectors between November 18, 1997 and the end of December 2000. In order to address the problem of moral hazard arising from blanket guarantees, limited coverages were reinstated In 2001 across all financial sectors with the maximum coverage of KRW50 million, which has remained the same for the past 24 years. Considering the level of growth seen in the economy
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May 14, 2025
- Household Loans, April 2025
- In April 2025, the outstanding balance of household loans across all financial sectors rose KRW5.3 trillion (preliminary), growing at a faster pace compared with the previous month (up KRW0.7 trillion). (By Type) Home-backed mortgage loans increased KRW4.8 trillion, rising at a faster pace compared with a month ago (up KRW3.7 trillion). The pace of mortgage loan growth accelerated in the banking sector (up KRW2.5 trillion up KRW3.7 trillion), while slowing down somewhat in the nonbanking sector (up KRW1.2 trillion up KRW1.1 trillion). Other types of loans increased KRW0.5 trillion, shifting back up from the decline of KRW3.0 trillion in the previous month, as credit loans edged up KRW1.2 trillion from a month ago (down KRW1.2 trillion). (By Sector) In April, household loans in the banking sector rose at a faster pace compared with the previous month (up KRW1.7 trillion up KRW4.8 trillion). Banks own mortgage loans grew at an expanded level (up KRW0.7 trillion up KRW1.9 trillion) and policy-based loans also rose at a slightly faster pace (up KRW1.8 trillion up KRW1.9 trillion). Other types of loans in the banking sector turned back up from the decline in the previous month (down KRW0.9 trillion up KRW1.0 trillion) due to a rise in credit loans. In the nonbanking sector, household loans edged up KRW0.5 trillion, rising from the decline of KRW0.9 trillion a month ago. Savings banks (down KRW0.2 trillion up KRW0.4 trillion) and insurance companies (down KRW0.2 trillion up KRW0.1 trillion) saw household loans shifting back up, while specialized credit finance businesses (down KRW0.9 trillion down KRW0.1 trillion) saw a slower pace of decline. In the mutual finance sector (up KRW0.4 trillion up KRW0.2 trillion), the pace of growth slowed down somewhat compared with the previous month. (Assessment) The expanded pace of household loan growth in April can be attributable to the rise in housing transactions taking place between February and March, and the rise in credit loans
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May 02, 2025
- Sale of Virtual Assets by Non-profit Corporations and Exchanges will be Allowed From June
- The virtual asset committee finalized the guidelines on sale of virtual assets by non-profit corporations and virtual asset exchanges, including permission on the issuance of real-name account for the purpose of virtual asset disposal and requirements to prevent money laundering and conflicts of interests. BACKGROUND Vice Chairman Kim Soyoung of the Financial Services Commission presided over the fourth meeting of the virtual asset committee on May 1 at the Government Complex Seoul. Joined by relevant ministry officials, agencies, and private sector experts, the committee finalized the guidelines on sale of virtual assets by non-profit corporations and virtual asset exchanges. The measure is a follow-up to the roadmap for allowing transactions of virtual assets by corporate entities. In addition, in response to growing concerns over investor harm caused by extremely volatile movements in virtual asset prices right after they become listed, the so-called listing pumps, the committee also discussed proposed revisions to the best practice guidelines for listing. key revision details Guidelines for Virtual Asset Disposal by Non-profit Corporations To ensure the proper level of internal controls and transparency, the guidelines for non-profit corporations will initially allow disposal of virtual assets by entities subject to external audit with five years or more in business operation and require them to establish an internal committee for prior reviews on the appropriateness of the donations and the plans for liquidation into cash. Given that virtual assets easy liquidation into cash is necessary for an adequate use of donated virtual assets, the virtual assets subject to donation will be limited to virtual assets that are traded in at least three Korean won-based exchanges only. Also, the donated virtual assets must be liquidated into cash immediately upon donation. In order to ensure safeguard measures for anti-money laundering, the guidelines strengthen verification
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Apr 23, 2025
- FSC Chairman Visits Boston and New York to Strengthen Financial Cooperation
- Chairman Kim Byoung Hwan of the Financial Services Commission visited Boston and New York, the United States on April 21-22. On April 21, Chairman Kim visited Bostons biotech cluster and held a meeting with the investment companies and Korean biotech firms operating in the U.S. to seek insights on ways to bring about regulatory improvements to promote Koreas biotech venture investment. On April 22, Chairman Kim visited New York and had meetings with Blackstone CEO Stephen Schwarzman and Korean financial companies that have established business operations in New York. Visit to Boston Visit to KHIDIs U.S. Office On April 21, Chairman Kim visited the Korea Health Industry Development Institute (KHIDI)s U.S. office in Boston to gain overall insights into the regions biotech cluster (Kendall Square, aka the most innovative square mile on the planet), which is the worlds largest biotech venture ecosystem hosting more than a thousand biotech companies, research institutions, hospitals, and universities. During his visit, Chairman Kim was also briefed about Korean biotech companies operating in the U.S. and the support made available by the KHIDI. Meeting with Venture Capital Investors Chairman Kim held a meeting with a group of Korean venture capitalists operating in Bostons biotech cluster to seek diverse opinions and gain insights on ways to cultivate a biotech venture investment ecosystem in Korea. At the meeting, Chairman Kim said that Koreas venture investment has declined after reaching a peak in 2021-2022, particularly in the biotech sector associated with high risks where long-term investments are required. Since investors may face difficulties in making an exit in the biotech industry, Chairman Kim said that there are concerns over a potential fall in the biotech venture ecosystem. In this regard, Chairman Kim sought diverse recommendations and opinions from participants that will help to foster a biotech venture ecosystem in Korea. Visit to AVEO Oncology Chairman
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Apr 14, 2025
- New Sanctions Mechanisms on Unfair Trading and Illegal Short Sale Activities to Take Effect from April 23
- The Financial Services Commission announced that the government approved the revision bill for the Enforcement Decree of the Financial Investment Services and Capital Markets Act (FSCMA) intended to establish new sanctions mechanisms against unfair trading and illegal short sale activities at the cabinet meeting held on April 14. The revised Enforcement Decree is scheduled to go into effect on April 23, 2025 along with the revised FSCMA and subordinate regulations. Background The government has continuously worked to strengthen monetary sanctions through the introduction of penalty surcharge and the increased level of fine imposable against unfair trading and illegal short sale activities in capital markets. However, in order to more effectively prevent the recurrence of unfair trading activities, the need for introducing non-monetary sanctions mechanismssuch as an account freeze and a restriction from being appointed or serving as an executive officer at listed companieshas been called for taking examples from major overseas countries, such as the U.S., Hong Kong, and Canada. Therefore, this revision bill introduces the following non-monetary sanctions mechanisms(a) a restriction for rule-breakers from engaging in transactions of financial investment products and being appointed or serving as an executive at listed companies and (b) an account freeze (payment suspension) on the accounts suspected to have been used in unfair trading or illegal short sale activities. Key Revision Details I. Restriction from Engaging in Transactions of Financial Investment Products Application of Regulation Under the revised FSCMA, the FSC is authorized to restrict rule-breakers (those who have engaged in unfair trading and/or illegal short sale activities) from engaging in transactions of financial investment products for up to five years depending on the nature, seriousness, period, frequency, and the level of unfairly gained profits of the rule-breaking activities. In this regard,
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Apr 14, 2025
- FSC Proposes Legislative Changes to Improve Regulations on Financial Holding Companies
- The Financial Services Commission issued a preliminary notice of legislative changes on April 14 regarding the Financial Holding Companies Act (the Act hereinafter) and its Enforcement Decree, with aims to facilitate synergetic effects within financial holding companies and unleash more agile responses amid changing external environments. Background Financial holding companies (aka financial conglomerates) have been continuously growing since the enactment of the Act in 2000, which sought to improve the competitiveness of financial companies through enlargement and concurrent business operations, while promoting the sound management of their subsidiaries. However, despite the quantitative growth achieved thus far, it has been pointed out that their growth in qualitative terms has remained inadequate due to investment regulations and ownership restrictions. Particularly with rapidly changing environments in the financial sector, such as digital transformation and the big blur phenomena, it has become increasingly crucial to seek regulatory reforms enabling financial holding companies to more agilely and effectively cope with these changes. In this regard, the FSC has held a series of taskforce meetings and seminars with relevant stakeholders and private sector experts to draw up plans to improve rules on financial holding companies. Some of the measures that require no revision to legislation and can be enforced through authoritative interpretationsuch as the shared use of office space, sharing of information for management purpose, and expanding the scope of financial holding companies business areasbe will take effect immediately. The measure which requires a legislative revisionraising the maximum level of investment financial holding companies can make in fintech businesseswill go through a relevant amendment process. Key Revision Details Easing Financial Holding Companies Fintech Investment Limit Pursuant to the current Act, financial holding companies are allow
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Apr 10, 2025
- Household Loans, March 2025
- In March 2025, the outstanding balance of household loans across all financial sectors edged up KRW0.4 trillion (preliminary), growing at a slower rate compared with the previous month (up KRW4.2 trillion). (By Type) Home mortgage loans increased KRW3.4 trillion, as the pace of growth decelerated in both the banking (up KRW3.4 trillion up KRW2.2 trillion) and nonbanking (up KRW1.5 trillion up KRW1.1 trillion) sectors from a month ago. Other types of loans dropped KRW3.0 trillion, declining at a faster rate compared with the previous month (down KRW0.7 trillion) as credit loans shifted back lower from a month ago (up KRW0.1 trillion down KRW1.2 trillion). (By Sector) Household loans in the banking sector (up KRW3.3 trillion up KRW1.4 trillion) grew at a slower rate, while shifting back lower in the nonbanking sector (up KRW0.9 trillion down KRW1.0 trillion). In the banking sector, policy-based loans rose at a slower rate compared with the previous month (up KRW2.8 trillion up KRW1.5 trillion), while banks own mortgage loans increased at a slightly faster rate (up KRW0.6 trillion up KRW0.7 trillion). Other types of loans including credit loans dropped at a faster rate from a month ago (down KRW0.2 trillion down KRW0.9 trillion). In the nonbanking sector, household loans grew at a slower rate in the mutual finance sector (up KRW0.8 trillion up KRW0.3 trillion), while declining at a faster rate in the savings banks sector (down KRW0.03 trillion down KRW0.2 trillion). Specialized credit finance businesses saw household loan growth turning back down (up KRW0.3 trillion down KRW0.9 trillion), while insurance companies saw a similar level of drop from the previous month (down KRW0.1 trillion down KRW0.1 trillion). (Assessment) The outstanding balance of household loans in March 2025 rose KRW0.4 trillion, edging up at a slower rate compared with the previous month (up KRW4.2 trillion), which shows a stable trend in the pace of growth. However, the high volume of housing mark
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Apr 09, 2025
- FSC Introduces Plans to Improve Competitiveness of Corporate Financing by Securities Businesses
- The Financial Services Commission announced plans to improve the competitiveness of corporate financing by securities businesses on April 9. Under the newly introduced plans, comprehensive financial investment business entities (CFIBEs hereinafter) will be subject to increased credit granting limits for corporate financing and required to supply 25 percent of capital raised from promissory notes and investment management account (IMA) for venture capital. The IMA scheme, which was first introduced in 2017 but has not been utilized since, will go through improvements. Based on the improved IMA scheme, the process for designating CFIBEs that are eligible to handle promissory notes and IMA will begin within this year. Moreover, the plans contain measures to provide incentives for overseas expansion of securities firms and regulatory reforms intended to bolster the soundness management over derivatives-linked securities (DLS) and derivatives-linked bonds (DLB). In June this year, the FSC plans to prepare and announce detailed measures to strengthen the soundness of real estate financing and liquidity management by securities firms and ways to improve rules on the soundness of CFIBEs. FSC Chairman Holds Meeting with CEOs of CFIBEs On April 9, FSC Chairman Kim Byoung Hwan held a meeting with the CEOs of ten major CFIBEs and introduced the governments plans to improve the competitiveness of corporate financing by securities firms centered on regulatory improvements for CFIBEs. At the meeting, Chairman Kim and the participants discussed future directions for securities businesses in sustaining an innovative growth of our economy and promoting value-up in capital markets. In his opening remarks, Chairman Kim underscored the important role of capital markets in making sure that our economy maintains vitality and continues to grow in the future. In this regard, Chairman Kim said that the plans being introduced today are intended to boost the role of securities businesses in co
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Mar 27, 2025
- FSC Introduces Plan to Facilitate Entrustment of Banking Services to Improve Consumer Access to Financial Services
- The Financial Services Commission announced a plan to facilitate the entrustment of banking services to improve consumer access to financial services on March 27. Under the plan, the FSC plans to (a) establish a legislative ground for introducing bank agency services and (b) facilitate the use of jointly shared automated teller machines (ATMs) in the banking sector and the small-sum deposit and withdrawal services at convenience stores. With digital transformation rapidly taking place in the financial industry, the number of physical bank branches has been continuously declining.This declining trend has been evident not only in Korea but across the globe as it has become inevitable that online (non-face-to-face) work processes have picked up in a digital era. However, this declining trend in the number of bank branches may restrict financial access to digitally vulnerable consumer groups, such as the elderly. Thus, the proposed plan to facilitate the entrustment of banking services is expected to help address this problem and improve consumer access to financial services. Introducing Bank Agency Services Under the bank agency framework, third-party entities are authorized to provide intrinsic banking services specified under the Banking Act (deposit-taking, lending, money transfer, etc.). This allows consumers to conduct face-to-face banking businesses on-site at locations that are not bank branches. Bank agencies do not engage in all types of banking functions but instead only perform certain types of services requiring face-to-face interactions with customers on behalf of banks, such as consulting, receiving application forms, signing an agreement, etc. Other types of banking functions, such as the screening and approval of applications which require decision-making but no interaction with customers, are still directly performed by banks. Since bank agencies will perform intrinsic banking services, there will be entry restrictions, and only authorized entities wil
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Mar 24, 2025
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Mar 21, 2025
- Mobile Foreigner Residence Card to be Accepted for Opening Bank Account at Six Domestic Banks from March 21
- The Financial Services Commission, the Ministry of Justice, and the Ministry of the Interior and Safety announced that foreigners residing in Korea with registered IDs will be able to open bank accounts and conduct financial transactions using mobile foreigner residence cards from March 21. From January 10 this year, the Ministry of Justice began to issue mobile foreigner residence cards to those who have registered their status of residence in Korea. A mobile foreigner residence card can be obtained if the foreigner with registered status is 14 years of age or older and owns a smartphone under his or her own name. After downloading mobile ID app on their smartphones, foreign residents can obtain mobile foreigner residence cards by tagging their plastic foreign resident ID cards (integrated circuit cards) on smartphones, or by scanning the QR code with the mobile ID app. To make sure that personal ID verification is conducted safely and conveniently, the Ministry of the Interior and Safety established a blockchain-based and integrated mobile ID system and has introduced mobile IDs for drivers license (Jan. 2022), veteran ID card (Aug. 2023), and foreign resident ID card (Jan. 2025) in coordination with related ministries. The financial sector and the financial authorities have also been making relevant changes to boost the convenience and safety of consumers in their transactions with financial companies. As such, from March 21, 2025, foreign residents will be able to open bank accounts and conduct financial transactions using their mobile foreigner residence cards from six domestic banks (Shinhan, Hana, iM, Busan, Jeonbuk, and Jeju). Under the revised Immigration Act, mobile foreigner residence card is recognized as an equally valid form of ID as the original plastic ID card. The financial authorities in close coordination with the Ministry of the Interior and Safety and the banking sector have since then made changes and upgraded relevant procedures and systems to
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Mar 12, 2025
- Household Loans, February 2025
- In February 2025, the outstanding balance of household loans across all financial sectors increased KRW4.3 trillion (preliminary), shifting back up from the drop of KRW0.9 trillion in the previous month. (By Type) Home mortgage loans increased KRW5.0 trillion, growing at a faster rate compared with the previous month (up KRW3.2 trillion). Mortgage loans expanded at a faster rate in the banking sector (up KRW1.7 trillion up KRW3.5 trillion), while growing at a similar level in the nonbanking sector (up KRW1.5 trillion up KRW1.5 trillion). Other types of loans dropped KRW0.6 trillion, declining at a slower rate compared with the previous month (down KRW4.1 trillion), as credit loans shifted back up from a month ago (down KRW1.5 trillion up KRW0.1 trillion). (By Sector) Household loans in the banking sector rose KRW3.3 trillion, turning back up from the decline of KRW0.5 trillion a month ago. Policy-based loans grew at a faster rate (up KRW2.2 trillion up KRW2.9 trillion), while banks own mortgage loans edged up from the decline in the previous month (down KRW0.6 trillion up KRW0.6 trillion). Other types of loans including credit loans declined at a slower rate compared with the previous month (down KRW2.1 trillion down KRW0.2 trillion). In the nonbanking sector, household loans rose KRW1.0 trillion, turning back up from the decline of KRW0.5 trillion a month ago. Mutual finance businesses (down KRW0.1 trillion up KRW0.8 trillion) and specialized credit finance businesses (down KRW0.1 trillion up KRW0.3 trillion) saw household loans shifting back up from the previous month. Savings banks saw a drop of KRW0.02 trillion from the growth of KRW0.2 trillion a month ago. Household loans in the insurance sector dropped at a slower rate compared with the previous month (down KRW0.5 trillion down KRW0.1 trillion). (Assessment) The outstanding balance of household loans across all financial sectors edged up somewhat considerably in February as financial companies have begun to i
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Mar 06, 2025
