Press Releases - Financial Services Commission

Press Releases

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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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Nov 23, 2021

KoFIU Holds International Conference Commemorating 20th Anniversary

The Korea Financial Intelligence Unit (KoFIU) hosted an international conference commemorating the 20th anniversary of its establishment on November 23.The conference was held to promote discussion on virtual asset and other important issues related to the anti-money laundering (AML) regime and foster strong international cooperation in this area. KoFIU Commissioner Kim Jeong-kag delivered a keynote address highlighting the importance of digital transformation and the critical role of the AML/CFT regime for building trust in the financial system. More specifically, Commissioner Kim discussed the need to make use of suptech in the AML/CFT regime and said that the emergence of new technologies and digital financial services makes it necessary for international organizations, regulatory authorities and financial institutions to work for closer cooperation and mutual understanding. On the recently revised Financial Action Task Force (FATF) recommendations on virtual assets and VASPs, Commissioner Kim said that the KoFIU will continue to work on regulatory improvements to ensure that the so-called travel rule for virtual assets and VASPs in Korea reflects global standards set forth by the FATF. The conference consisted of two sessions(a) virtual assets and the AML duties of virtual asset service providers and (b) digital transformation of the AML/CFT regime. Each session featured expert presentations followed by a panel discussion. Some of the notable participants to the venue included FATF president Marcus Pleyer and Thailands Anti-Money Laundering Office chief Piyapun Pingmuang. Officials from foreign FIUs also participated in the conference virtually. * Please refer to the attached PDF for details.
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Nov 03, 2021

FSC Proposes Rules Change to Facilitate Overseas Business Operation of Financial Companies

The FSC announced a plan for changing rules to facilitate financial companies business operation and investment activities in overseas markets on November 3. With a growing number of financial companies expanding their business operations overseas, financial companies foreign direct investment (FDI) activities in overseas markets have also grown.The volume of financial companies FDIs has grown in terms of both direct investment for establishing overseas branches and indirect investment through foreign funds. However, the current reporting rules have often caused unnecessary burden for financial companies in their overseas investment activities due to strict filing procedures, etc. As such, the FSC plans to change rules to simplify their reporting requirements and remove unnecessary burden. Key Details a) Currently, FDIs made through foreign funds are subject to the advance reporting requirement regardless of the investment amount. However, FDIs of USD30 million or less made through overseas branches can be subject to ex post facto reporting. Both FDIs made through foreign funds and FDIs made through overseas branches will be allowed for ex post factor reporting within one month for FDIs ofUSD20 million or less. b) Currently, financial companies investing ten percent or more in equity shares of foreign funds are required to report to the FSS about any changes in their ownership status even when changes in their equity shares occur due to changes in investment amounts made by other shareholders in proportion to their own shareholding. FDIs in foreign funds will be subject to the ten percent reporting rule only at the time of making initial investment and financial companies will be exempted from further reporting duties when changes in their shareholding occur without additional investments. c) Currently, some of the routine activities by financial companies overseas branches, such as equity trading or loan transaction of more than one year, are subject to reporting d
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Sep 30, 2021

FSC Chairman Discusses Fostering Stability and Development in Capital Markets

FSC Chairman Koh Seungbeom met with relevant officials in the capital marketson September 30 and held talks on ways to promote stability and development in the capital markets. The following is a summary of Chairman Kohs remarks. Recent Trends in Capital Markets (Quantitative Expansion) The capital markets in Korea have recently seen an unprecedented level of expansion with the market capitalization of listed stocks reaching more than KRW2.65 quadrillion as of September 29, 2021, which is about 1.3 times greater than the level of GDP (KRW1.93 quadrillion at the end of 2020). The number of retail investors also increased significantly to almost ten million individuals. As a result, many securities firms and asset management companies saw their largest gain in net profits last year. (Major Changes) Despite this quantitative expansion in market size, there are a few notable changes to consider. There have been cases where domestic firms chose an overseas market for their company listing and domestic investors are increasingly investing in foreign stocks. There is also a growing tendency of investors bypassing intermediaries and directly engaging in investment. The emergence of new asset class, such as virtual assets and non-fungible tokens, is often considered to be in competition with the more traditional financial investment instruments. Policy Issues Amid rapid growth and structural changes taking place in the capital markets, it is necessary to focus more on the fundamentals. The capital markets should first and foremost help individuals with asset formation by providing steady returns over the long run. In particular, the capital markets should help divert much concentrated assets in the real estate market and introduce diverse investment instruments and services to help absorb shocks originating from demographic changes and other socioeconomic transitions taking place. Second, the capital markets cannot turn profits without the growth of companies. In order to in
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Sep 29, 2021

FSC Decides to Extend the Period on Some of Temporary Deregulatory Measures

The FSC decided to extend the period of some of the pandemic response deregulatory measures introduced in April last year at its regular meeting held on September 29. Background The FSC and the FSS introduced the plans for temporary easing of financial regulations in response to COVID-19 in April last year.The authorities have been reviewing the progress and situations regarding the 25 deregulatory measures put in place to deal with the COVID-19 crisis. Among them, the authorities decided to temporarily extend the period of some of the deregulatory measures related to financial institutions liquidity ratio and loan-to-deposit ratio until the end of March 2022. With regard to the eased rule on the credit extension between financial holding companies own subsidiaries, the authorities decided to let it expire as it is no longer deemed as necessary. The pandemic-related deregulatory measures have helped financial institutions to provide adequate levels of loan support to SMEs and small merchants struggling through the pandemic in the form of maturity extensions and payment deferrals. The measures also helpedeither directly or indirectlyto expand capital flows to support the real economy. Key Details With the availability of loan maturity extensions and payment deferments for small merchants and SMEs extended for six more months until March 2022,the availability of relevant deregulatory measures will also be extended accordingly as shown below. a) (Banks) Temporary lowering of total LCR foreign currency LCR: Initially scheduled to expire at the end of September 2021 Extended until the end of March 2022 b) (Banks) Temporary lifting of LTD ratio: Initially scheduled to expire at the end of December 2021 Extended until the end of March 2022. c) (Banks) Lowering risk weights on business loans to self-employed small merchants: Initially scheduled to expire at the end of September 2021 Extended until the end of December 2021 d) (Credit finance savings banks) Temporary lifting
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Sep 23, 2021

FSC to Continue to Work on Improving Retail Investors' Access to Stock Short Selling

The FSC announced the latest trends in retail investors short selling activities as stock short selling became available for KOSPI 200 and KOSDAQ 150 from May 3 this year. Key Details (Short Selling Activities) Between May 3 and September 17 this year, the daily average short selling volume dropped about 12 percent compared to the period between January 2 and March 13 in the previous year.Given a large increase in the overall volume of stock market transactions, the proportion of short selling in relation to the total trading amount remains about a half the previous level. The short selling transaction volume by foreigners and retail investors increased while that by institutional investors declined. The daily average short selling volume by foreigners rose about 21 percent compared to the previous year, but the proportion of short selling vis--vis the total trading amount by foreigners dropped.The daily average short selling volume by institutional investors fell by more than a half from KRW286.0 billion to KRW126.4 billion as the revised rules on market makers began to take effect from April this year. (Trends of Retail Investors) Since the partial resumption of short selling began in May, the daily average short selling volume by retail investors stands at about KRW11.0 billion, which is an increase of about 41 percent compared to the previous year. The weight of retail investors in the total short selling volume rose to 1.9 percent in 2021 from 1.2 percent in the previous year. The top ten stock items that were mostly targeted by retail investors for short selling appeared to be similar to those targeted by overall short sellers including foreigners and institutions. The authorities found no meaningful correlation between the amount of short selling and individual share prices. Nor was there any meaningful relationship between the proportion of short selling and the performance of stock prices in the market. As of September 2021, the number of securities firms o
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Sep 13, 2021

FSC Plans to Make Fractional Trading of Domestic and Foreign Stocks More Widely Available

The FSC announced its plans to make fractional trading of both domestic and foreign stocks more widely available to help improve access and convenience for investors. Background In 2019, the FSC allowed fractional trading of foreign stocks offered by Shinhan Investment and Korea Investment Securities by designating them as innovative financial services to be granted regulatory exemptions under its financial regulatory sandbox program. As a result, by the end of June 2021, the number of fractional stock traders at Shinhan Investment and Korea Investment Securities reached about 140,000 and 510,000, respectively, with their investment amounts standing at KRW270 million and KRW750 million each. However, fractional trading of domestic stocks remained unavailable due to the principle of indivisibility of shares as well as the non-fractional share-based design with which the domestic securities trading and depository infrastructures was set up. To help improve investor access and convenience, the FSC plans to make improvements to the current fractional trading system and make fractional trading of both domestic and foreign stocks available. Key Details Unlike the current system where individual securities firms have to apply for regulatory exemptions to provide fractional trading services, the new system will be based on a special infrastructure set up at Korea Securities Depository (KSD) that is dedicated to fractional trading and can be accessed and used by any securities firms that wish to offer fractional trading services to their customers. This will strengthen the safety and convenience of fractional trading in both domestic and foreign stocks. (Foreign Stocks) Stock trading in fractional shares of foreign stocks will be directly recorded in the securities firms account books. KSD will maintain separate account books on fraction trades and regularly check their consistency with those of securities firms. Investors will be able to trade in fractional shares of foreig
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Aug 25, 2021

FSC Changes Rules to Allow Cross-border ETF Scheme with China

The FSC approved changes in the Enforcement Rules of the Financial Investment Services and Capital Markets Act and other relevant industry regulation to allow China-based exchange traded funds (ETFs) listed in the Shanghai Stock Exchange to be registered for sale by local asset managers in Korea effective from August 27 this year. The Korea Exchange and the Shanghai Stock Exchange signed an MOU in May this year to establish a cross-border ETF scheme (ETF Connected). However, the current regulatory framework allows only foreign based ETFs from OECD members, Hong Kong and Singapore to be eligible for registration in Korea. As such, the FSC changed the relevant rules for a seamless implementation of the cross-border ETF link between Korea and China. The authorities expect that there will be more opportunities for domestic investors to make investment in foreign assets. * Please refer to the attached PDF for details.
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Jul 22, 2021

KoFIU Notifies Foreign VASPs of Their Obligation to Register

With the Act on Reporting and Using Specified Financial Transaction Information (hereinafter the Act) going into effect from March 25, 2021, all VASPs are required to register their business with the KoFIU by September 24, 2021. As such, the KoFIU has sent out a notice to 27 foreign VASPs about their obligation to register. Obligations of Foreign VASPs The Act requires VASPs to register with the KoFIU as the law equally applies to foreign VASPs that conduct activities outside Korea but have domestic consequences within Korea. Thus, if any VASPs conduct business operation targeting Koreans, they are required to register with the KoFIU and comply with requirements under the Act regarding their business operations targeting Koreans. Notice to Foreign VASPs The KoFIU has sent out a notice signed by the Commissioner of the KoFIU to 27 foreign VASPs that have business operations targeting Koreansabout their requirement under the Act to register with the KoFIU by September 24, 2021. If foreign VASPs fail to register with the KoFIU, they shall cease their business operation targeting Koreans from September 25, 2021. They are notified of the possibility of being subject to penalties as prescribed by the Act if they continue to operate without registration. Foreign VASPs that have not received any notice from the KoFIU but have business operation targeting Koreans are also required to register with the KoFIU or suspend their business operation targeting Koreans from September 25, 2021. If they continue to operate business without registration, they will be subject to up to five years of imprisonment or a maximum fine of KRW50 million as prescribed by the Act. Future Plan For foreign VASPs that continue to operate without registration beyond the September 24 deadline, the KoFIU will notify them of their illegal activities and take actions such as blocking access to their websites to inhibit their illegal business operations. The KoFIU will also bring charges against unregister
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Jul 14, 2021

FSC Proposes 1-Year Postponement of External Audit on Consolidated Internal Accounting Control

The FSC proposed a postponement of external audit on the consolidated internal accounting control system for one year as many firms are experiencing difficulty in setting up the internal accounting management system due to COVID-19. The FSC introduced its proposal through revisions to the Enforcement Decree of the Act on External Audit of Stock Companies, which will be put up for public notice from July 14 to August 23. Under the current regulatory regime, stock companies with KRW2 trillion or more in assets would be required to set up and operate an internal accounting control system under a consolidated basis and be subject to an external audit from 2022. However, for many companies that have foreign affiliates and are unable to travel overseas due to COVID-19, it has been difficult to set up a consolidated internal accounting control system. As such, the revised Enforcement Decree proposes that the external audit on consolidated internal accounting control system be postponed for one year, while early implementation also remains an option for companies that wish to follow the previously set schedule. Aside from the postponement, the revision proposal also introduced measures to control external audit quality and to sanction registered auditors if they are found to have violated the duty to maintain certain registration requirements. The authorities plan to finish the revision process by the end of 2021. * Please refer to the attached PDF for details.
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Jun 24, 2021

2021 Korea Fintech Week Brings About Tangible Outcome for Fintech Advancement

The 2021 Korea Fintech Week has attracted about 250,000 online visitors so far since its opening on May 26. The offline to online availability of diverse opportunities for exhibition, education, investment and employment has provided important venues for fintechs, financial companies, relevant institutions and individuals seeking jobs in the industry. Through offline IR events and virtual meetings, 29 fintechs were able to attract investments in the amount of about KRW133.7 billion. A total of 54 fintechs, financial companies and relevant institutions participated in the online job fair through which up to 175 individuals will be given job opportunities in fintech or finance sectors. In this years event, 39 foreign-based fintechs, financial companies and investors from 13 different countries participated in online exhibitions, which provided opportunities for global cooperation and overseas expansion. The Korea Fintech Week also featured many expert speakers providing latest trends in the global fintech industry and relevant policy issues. * Please refer to the attached PDF for details.
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Jun 03, 2021

FSC Announces Analysis on Stock Markets with Partial Resumption of Short Selling

With the partial resumption of short selling being in place for about a month, the FSC announced an analysis on stock market trends for the period of May 3 to June 2. During this period, stock prices moved in a similar pattern as global stock markets while domestic stock prices showed relatively stable movements compared to other markets. Although the average daily amount of short selling transactions rose somewhat, it appears that there exists no significant relationship between short selling and stock prices for the given period. The FSC and other relevant institutions will continue to closely monitor market trends while working to bring about transparency and fairness in the markets. Stock Market Trends As of June 2, KOSPI and KOSDAQs closing prices were up 2.4 percent and down 0.2 percent, respectively, compared to April 30, the last trading day before the partial resumption of short selling began. In May, global stock prices showed mixed trends with the possibility of tapering by the Fed amid price increases in the U.S. Asian stock markets moved in the same direction as global stocks while domestic stock markets showed relatively stable trends as corporate earnings improved and retail investors remained net buyers. In May, foreigners net sold KRW9 trillion but turned to net buying in the last week of the month. Due to concerns about a monetary tightening from the U.S., other Asian markets also experienced foreign outflows. Short Selling Trends During the one-month period from May 3 to June 2, the average daily amount of short selling transactions increased somewhat to KRW688.2 billion. However, considering the fact that the total transaction amount increased more than twice the level seen before the partial resumption of short selling began, the growth is not that considerable.Also, as the built-up demand for short selling begins to fade out, the growth in the amount of short selling transactions also shows a downward trend toward stability. During the one-mont
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May 27, 2021

FSC to Host Special Session on Green Finance at the 2021 P4G Seoul Summit

The FSC will host a green future session on the topic of green finance at the 2021 P4G Seoul Summit at Dongdaemun Design Plaza on Saturday, May 29, from 20:00 to 22:00 (Korean Standard Time). The special session on green finance will be available for online live streaming for anyone who is interested in watching via official websites of the 2021 P4G Seoul Summit, FSC and their YouTube channels. The special session will feature discussions on the role of finance in fostering green recovery in the post-COVID-19 era. Speakers and panelists will include foreign dignitaries and experts from climate and finance-related international organizations and institutions, such as the UNFCCC, WEF, IFC, BIS, EIB, TCFD, GCF, GGGI and SP. FSC Chairman Eun Sung-soo will deliver opening remarks through which he will offer an outlook on the future tasks of global green finance efforts while calling for close cooperation from financial sectors across the globe to achieve carbon neutrality. In particular, Chairman Eun will introduce Koreas green finance policies that have been actively pursued by the government as it announced the 2050 carbon net zero goal last year. The special session on green finance will shed a new light on the important role of finance in responding to climate change. It will also help raise domestic financial sectors interest and participation in green finance efforts. For more details about the program, please see the attached reference material. * Please refer to the attached PDF for details.
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May 21, 2021

Revised FSCMA to Simplify Business Approval Process and Promote Orderly Trading Activities

The National Assembly passed a partial revision to the Financial Investment Services and Capital Markets Act during a plenary session held on May 21. The revision is aimed at simplifying the business approval process for financial investment businesses and encouraging orderly trading activities in capital markets. For financial investment businesses, setting up additional business units in equivalent business areas will become easier as the approval process will be simplified to help improve efficiency in their business management. When registering an additional business unit, financial investment businesses will be exempted from submitting a business plan and proving the creditworthiness of major shareholders. The same standards will be applied to foreign companies when changing their operational status from a branch office to subsidiary or vice versa. The revised FSCMA also creates penalties of maximum five years of imprisonment or KRW200 million in monetary sanction for the act of brokering investors with investment account lending, while strengthening the rules of asset forfeiture on price rigging, etc. The revised FSCMA will take effect six months after promulgation. * Please refer to the attached PDF for details.
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