Press Releases - Financial Services Commission

Press Releases

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Mar 05, 2020

2020 Policy Roadmap for Capital Markets

The FSC unveiled its 2020 policy roadmap for capital markets on March 4, 2020, which aims to make capital markets play a more active role in financing innovative companies. The policy plans are mainly focused on (i) providing funds tailored to company’s growth cycle; (ii) stimulating the IPO markets; and (iii) securing a transparent and advanced infrastructure in capital markets.POLICY PLANSThe government will take steps to improve the capital markets infrastructure in order to help support businesses throughout their growth cycle.I. FINANCING TAILORED TO COMPANY’S GROWTH CYCLE (FOR START-UPS) ► CROWDFUNDING: Ease crowdfuding regulations to enable companies at the stage of launching beta service or sample products to raise funds via crowdfuding by allowing unlisted SMEs and companies that have been listed on KONEX for less than 3 years to use crowdfuding; expanding the amount of fundraisings through crowdfunding; and allowing crowdfunding platforms to provide business advisory and brokerage services for securities issued through equity crowdfunding. ► START-UP ACCELERATOR: Allow securities firms to operate as start-up accelerators which engage in selecting start-up entrepreneurs, providing seed investments and incubating programs.(FOR SCALE-UPS) ► BUSINESS DEVELOPMENT COMPANY: Introduce a business development company (BDC) , which is an investment vehicle that pools money from many investors, lists itself on the stock exchange and make investments in non-listed companies.► EASING RESTRICTIONS ON SECURITIES FIRMS: Ease regulatory restrictions on securities firms in financing SMEs by permitting a new type of debt financing called venture lending; clarifying the scope of corporate lending that securities firms are allowed to extend (e.g. MA, refinancing, lending to companies in debt restructuring, etc,); and adjusting capital requirements and leverage regulations on securities firms to expand their financing capability.► HIGH-YIELD CORPORATE BOND MARKET:
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Mar 04, 2020

FSC Decides on Penalties for DLF Misselling Banks

The Financial Services Commission decided on the penalties to be imposed on Hana Bank and Woori Bank on March 4, 2020 for the misselling of derivatives-linked funds. The decision is based on the inspection results previously taken by the Financial Supervisory Service during last year.Hana Bank will be suspended from selling private equity funds for six months (from March 5 to September 4, 2020) and face a fine of KRW16.78 billion.Woori Bank will be suspended from selling private equity funds for six months (from March 5 to September 4, 2020) and face a fine of KRW19.71 billion.The disciplinary measures determined by the FSS for bank officials will be carried out by the FSS.* Please refer to the attached PDF for details.
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Mar 04, 2020

FSC Plans to Introduce Consumer Credit Bill to Enhance Financial Inclusiveness

The FSC announced on March 3, 2020 its plans to draft a bill on consumer credit and push for the enactment of the legislation within this year in order to enhance financial inclusiveness.The new legislation will replace the current Act on Registration of Credit Business, etc. and Protection of Finance Users. It will take essential provisions on the contents and procedures of loan contracts from the Credit Business Act, while establishing new regulations on delinquent debt management, termination of contracts, etc.BACKGROUNDUnder the current personal debt management system, it is extremely difficult for delinquent debtors to recover on their own while facing a risk of turning into long-term delinquent debtors.► Only about 14,000~17,000 delinquent debtors out of 26,000~28,000 every year are found to seek personal debt restructuring programs while many choose not to.► The burden of arrears and repayments as well as the pressure of debt collection cause disruptions and distress to daily lives.► The debt collection process heavily focuses on the performance of debt collection while overlooking issues related to consumer trust.KEY PROVISIONSThe improvement will focus on providing more safeguards for debtors and providing more chances to get back on their feet by modifying the structure that currently tolerates excessive debt collection practices.The government will work to establish a legal principle for a balanced approach to debt collection that takes into account not only debt collection performance but also consumer trust.I. PROVIDE TAILORED SUPPORT TO DEBTORS FOCUSING ON THEIR NEEDSEstablish a new debtors’ right through which they can request debt restructuring from financial institutions, which will help them find ways to get back on their feet and resume normal economic activities.► Delinquent debtors will have an option to request a debt restructuring program when facing diminished debt servicing capacity. Upon such a request, financial institutions will
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Mar 03, 2020

Revision to FSCMA to Enhance Transparency and Reduce Systemic Risks in OTC Derivatives Markets

A revision bill to the Financial Investment Services and Capital Markets Act (FSCMA) was approved at a cabinet meeting on March 3, 2020. With the goal of enhancing transparency and reducing systemic risks in over-the-counter (OTC) derivatives markets, the revisions will establish statutory provisions for a trade repository, which will be introduced in October 2020 through amendments to the Regulation on Financial Investment Businesses, and for margin requirements of non-centrally cleared OTC derivatives, which is currently implemented via administrative guidelines by the FSS.KEY PROVISIONS1. TRADE REPOSITORY ► REPORTING REQUIREMENT TO TRADE REPOSITORY Financial investment companies are required to report transaction information of OTC derivatives to a trade repository and may be subject to fines of up to KRW100 million for violation of reporting requirements.► AUTHORIZATION FOR TRADE REPOSITORY BUSINESS Trade repository is required to get authorization for ‘trade repository business’ and abide by regulatory requirements for executive qualifications and internal controls.► SUPERVISION ON TRADE REPOSITORY Trade repository is required to get an approval from the FSC for establishing or amending its operational rules. The FSS can inspect business operations and financial status of trade repository. The FSC may revoke authorization, suspend business operations or sanction executives of trade repository if they commit illegal activities.► PROVISION OF TRADING INFORMATION Trade repository is required to provide financial authorities, including the FSC, the FSS, and the Bank of Korea with transaction information and disclose transaction-related statistics through websites.2. MARGIN REQUIREMENTS FOR NON-CENTRALLY CLEARED DERIVATIVES Financial institutions whose balance of non-centrally cleared derivatives is more than KRW3 trillion are required to deposit margins in their transaction of non-centrally cleared derivatives.SCHEDULEThe revision bill will be submitted
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Mar 03, 2020

2020 Policy Plans to Improve Competitiveness and Soundness of Financial Industry

The FSC announced its plans to improve the competitiveness and soundness of the financial industry on March 2, 2020. The plans focus on boosting the competitiveness of the financial industry, facilitating corporate financing, promoting corporate responsibilities to ensure consumer trust in the financial industry, and strengthening the management of financial soundness.KEY POLICY PLANS1. BOOSTING COMPETITIVENESS OF FINANCIAL INDUSTRYThe government will lower entry barriers to encourage innovative firms to enter the markets and work to modify regulations in business operation to create a more dynamic business environment.► SMALL LICENSES : Facilitate the entry of small-sized and specialized financial businesses in insurance, banking and credit lending sectors by subdividing their business license units and lowering their entry barriers.► INDUSTRY COMPETITIVENESS EVALUATION: Resume sectoral evaluation of competitiveness in banking, insurance and financial investment sectors, and apply the evaluation process for credit card and credit bureau businesses.Improve the effectiveness of the competitiveness evaluation from a consumer’s perspective by replacing the current sectoral evaluation system with a functional one.► PLATFORM BUSINESS: Review the boundaries in which financial companies can operate platform businesses and work to permit their operation of platform businesses.► DATA BUSINESS FOR CREDIT CARD COMPANIES (H1 2020): Revise the relevant enforcement decrees and regulations to permit credit card companies to operate MyData business and individual business credit bureau, and allow credit card companies to use anonymized or pseudonymized personal data for financial advising services► VENTURE INVESTMENT (Q1 2020): Modify regulations to promote financial companies’ investment in fintechs and other innovative venture start-ups to promote cross-sector convergence and collaboration, while working to provide tailored financing support through accelerator prog
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Feb 28, 2020

Government Unveils Additional Financial Measures to Support Businesses amid COVID-19 Spread

The government unveiled additional financing support for SMEs and small merchants hit by the spread of COVID-19 on February 28, 2020, as a follow-up to the financing support announced on February 7.FINANCIAL SUPPORT PROVIDEDBetween February 7 and 26, a total of KRW379.6 billion in new loans and guarantees were provided by policy banks and KRW607.4 billion in loan and guarantee extensions to the SMEs, small merchants and self-employed business owners whose businesses have been hit by the spread of COVID-19.Local banks provided about KRW81 billion in new loans and KRW135.8 billion in maturity extensions and deferred payments. For small businesses, credit card companies also provided about KRW9.1 billion in discounted interest rates and late fees.ADDITIONAL MEASURESI. STRENGTHEN FINANCING SUPPORT BY POLICY BANKS► For Small merchants, financing options such as low-rate loans and guarantee support will be available through the Industrial Bank of Korea and regional credit guarantee funds.a) Increase the funds available for super low or prime rate loans at the IBK from KRW1.7 trillion to KRW4.2 trillion b) Increase the funds available for guarantee support at regional credit guarantee funds from KRW16.7 trillion to KRW17.2 trillion► SMEs experiencing temporary liquidity problems are eligible to receive financial support through primary collateralized bond obligations (P-CBO) and other government-backed financing programs aimed at supporting SMEs’ facility investments.a) Expand the issuance of P-CBOs from KRW1.7 trillion to KRW2.2 trillionb) Ensure seamless implementation of financing programs (KRW3 trillion for advancing the industrial structure KRW4.5 trillion for bolstering facility investments) aimed at supporting SMEsc) Frontload the fund implementation in H1 2020II. WORK TO RELIEVE FINANCIAL BURDENS OF SMES AND SMALL MERCHANTS► (Maturity extension) SMEs and small merchants having problems with financing their businesses due to the spread of COVID-19 will be el
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Feb 28, 2020

Administrative Guidance on Mortgage Loan Regulations in Speculative Areas

The FSC will oversee the implementation of the new mortgage regulations through administrative guidance beginning on March 2, 2020 as a part of the government-wide efforts to prevent speculative demand and curb housing market overheating in the newly designated speculative areas.KEY PROVISIONSI. LTV REGULATION IN NEWLY DESIGNATED SPECULATIVE AREAS► The current loan-to-value (LTV) ratio of 60 percent will be lowered to 50 percent when purchasing homes valued up to KRW900 million in the newly designated speculative areas. For amounts above KRW900 million, a 30 percent LTV ratio will be newly applied.II. MORTGAGE LOANS FOR BUSINESSES► The current mortgage loan restrictions for businesses will equally apply to the newly designated speculative areas.III. MORTGAGE LOANS FOR HOMEOWNERS IN SPECULATIVE AREAS► Currently, homeowners with one house in speculative areas are eligible to apply for mortgage loans to purchase another home with an obligation that requires them to sell the current property within two years. While maintaining the sales requirement within two years, the new rule also obligates them to move into new home.* Please refer to the attached PDF for details.
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Feb 27, 2020

Financial Policy Plans to Support Innovative Start-ups & SMEs

The FSC outlined this year’s policy plans to support Korea’s innovation-led growth on February 26, 2020, as a follow-up to the 2020 work plan announced on February 17. The plans are intended to provide innovative start-ups and SMEs with financing support.KEY PLANSI. TARGETED SUPPORT TO 1,000 INNOVATIVE FIRMSThe government will select more than 1,000 innovative companies and provide KRW40 trillion in loans, investment and guarantees.▪ SELECTIONCandidates will be selected upon recommendations by economic ministries, financial companies and venture capitalists. A consultative body of policy banks will review candidates and select 1,000 companies based on their innovativeness of business.▪ FINANCIAL SUPPORTThose selected will be provided with KRW40 trillion over three years: KRW15 trillion in loans, KRW15 trillion in investment and KRW10 trillion in loan guarantees.▪ INNOVATIVE FIRMS WITH GLOBAL COMPETITIVENESSAmong 1,000 firms, 30 or more companies showing growth potential for global markets will be selected and provided with assistance to attract private investments from domestic and overseas venture capitalists.II. Introduction of Business Credit Scoring System Modeled after PaydexThe government plans to develop a business credit scoring system modeled after Paydex. The new system is designed to use companies’ non-financial business transaction information to determine their credit scores, thus offering companies a complementary channel to raise funds.▪ DEVELOPMENT PLANa) Set up a database of business transactions through collection of data from the Korea Credit Guarantee Fund and from external institutions, such as the Korea Financial Telecommunications Clearings Institute and the Korea Employment Information Serviceb) Produce business credit scores using the business transactions database after reviewing payment histories, business activities and payment capabilities of companiesc) Provide business credit scores to banks for the development of new gua
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Feb 27, 2020

Telecommuting Made Possible for Employees of Financial Companies amid COVID-19 Spread

The Financial Services Commission took steps to make telecommuting possible for the employees of financial companies in order to ensure an uninterrupted provision of financial services even in emergency situations, such as the spread of COVID-19.The current regulation on the supervision of electronic financial transactions requires that financial companies maintain a network separation to prevent cyber attacks and other financial accidents. An exemption to the network separation rule is granted when remote assistance by IT specialists is necessary according to company’s internal contingency plans.Beginning on February 7, the exemption to the network separation rule has now been extended to include the employees of financial companies working at head and branch offices. To clarify such regulatory exemptions, the financial authorities issued a no-action letter in response to inquiries from the Korea Financial Investment Association and Citibank Korea, and notified all other financial companies through relevant associations.The FSC will make sure that there is no interruption in the delivery and availability of financial services by closely monitoring the telecommuting situation by IT specialists. In order to help financial companies respond more flexibly to future emergency situations and changes in working environment, the government will look into ways to make the network separation rule more compatible with their needs.* Please refer to the attached PDF for details.
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Feb 26, 2020

Government Supports Smooth Operation of Corporate AGMs amid COVID-19 Spread

The government announced supportive measures on February 26, 2020 to ensure the safe and smooth operation of companies’ annual general meetings (AGMs) as the spread of COVID-19 may delay the submission of financial statements, audit and annual reports by some companies operating subsidiaries in China.Under the Financial Investment Services and Capital Markets Act and the External Audit Act, listed companies are required to submit (i) a financial statement to auditors no later than six weeks before the AGM; (ii) an audit report a week before the AGM; and (iii) an annual report within 90 days after the end of each fiscal year. If companies miss such deadlines, they may face administrative sanctions or penalties.Given that the outbreak of COVID-19 is an unexpected and unavoidable event for both companies and auditors, the Securities and Futures Commission (SFC) will grant an exemption from administrative sanctions for companies and auditors who satisfy the following conditions: (i) A company’s fiscal year ending on December 31, 2019; (ii) A company or an auditor must satisfy one of the followings:- COMPANY whose main operations (including subsidiaries) are based or conducted in China or domestic locations designated as “COVID-19 affected areas;” and whose financial statements or external audits were delayed by the outbreak of COVID-19 or disinfection measures- AUDITOR cannot complete an external audit for the fiscal year of 2019 due to the outbreak of COVID-19 or disinfection measures, such as closure of auditor’s office, etc. (iii) A company or an auditor is under ineluctable circumstances equivalent to (i), (ii). Companies or auditors should submit applications to the Financial Supervisory Service (FSS) or the Korean Institute of Certified Public Accountants (KICPA) from February 28 to March 18 to qualify for an exemption from administrative sanctions.The FSS and the KICPA will submit their reviews of application to the SFC, scheduled to be held at the end
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Feb 26, 2020

Fintech and Digital Finance Policy for 2020

The Financial Services Commission announced on February 25, 2020 its key policy plans for fintech and digital finance, which include advancing digital finance, promoting data economy, cultivating new fintech industry and services, working on regulatory reform in fintech and digital sectors, and strengthening the foundation for innovation.KEY POLICYI. ADVANCING DIGITAL FINANCEIn order to ensure long-lasting innovation and stability in the financial sectors, the government will work to promote innovation in digital finance and establish a digital risk management system.A) Improve digital finance’s infrastructure, industry and market► Open banking: a) expand functions and scale by allowing participation by mutual finance and financial investment businesses, and work on measures to enhance security and safety of financial consumers; b) push for the enactment of a legislative provision (Electronic Financial Transactions Act) that requires banks to provide their money transfer function through open API► Electronic financial businesses: introduce MyPayment and integrated payment businesses to promote the development of financial platforms offering a variety of services, while promoting innovation in personal authentication services, such as biometric authentication► Consumer protection: bring up the level of safeguards and protections for digital finance users on a par with advanced economiesB) Maintain appropriate balance between innovation and stability by strengthening the management and supervision of digital risks► Financial data security: establish principles to properly respond to new types of digital security risks by requiring internal risk control mechanisms in financial companies, operating a public-private joint risk management framework and bolstering response mechanisms for the incident response team► Risk management for third party: strengthen security management for IT outsourcing and set up a risk monitoring system using regtech for possible ri
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Feb 24, 2020

FSC Chairman Discusses Improvements to Supervision of Financial Conglomerates

FSC Chairman Eun Sung-soo held a meeting on February 24, 2020 with the CEOs of financial conglomerates and experts from the private sector to discuss ways to improve the supervision of financial conglomerates.The following is a summary of Chairman Eun’s remarks:The supervision of financial conglomerates is an effort to systematically manage group-wide risks of financial companies, which has become widely in use in advanced countries. This supervisory framework was first introduced in Korea in 2018 and has been operating for three years since. Based on our past experiences, the FSC plans to improve the supervisory framework in three areas.► Capital adequacy assessment: combine the currently distinct ‘risk concentration’ and ‘risk transfer’ categories into a single comprehensive framework for assessing capital adequacy requirements, and provide incentives for self-regulatory effort for risk management.► Disclosure rules: financial conglomerates shall gather required information from subsidiaries and provide group-wide disclosure of information on their financial statements, investment structures and risks in an easily understandable format.► Internal control requirements: financial conglomerates shall organize and operate an internal control system through which a group-wide consultative body can be introduced to facilitate discussion by compliance officers on group-wide internal control policy and other relevant issues.The FSC plans to take into consideration the opinions from today’s meeting for the revision of best practice guidelines on the supervision of financial conglomerates, which is expected to be finalized by April. The revised guidelines will go into effect in May this year.* Please refer to the attached PDF for details.
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Feb 21, 2020

Government to Closely Monitor Business Needs amid COVID-19 Outbreak

FSC Vice Chairman Sohn Byungdoo convened a meeting on February 21, 2020 to assess the implementation of the financing support intended to help SMEs and small merchants amid the COVID-19 outbreak.PROGRESSBetween February 7 and 18, a total of KRW322.8 billion (5,683 individual cases) in loans and guarantees as well as loan and guarantee extensions were provided to the SMEs, small merchants and self-employed business owners whose businesses have been hit by the spread of COVID-19.► SME financing by policy banks: KRW16.2 billion in new loans, KRW31.96 billion in loan extensions, KRW25.48 billion in new guarantees and KRW62.1 billion in guarantee extensions► Small merchant financing by policy banks: KRW1.34 billion in new loans, KRW1.53 billion in new guarantees and KRW91.6 in guarantee extensions► Local banks provided KRW86.45 billion (179 cases) in total: KRW17.14 billion in new loans and KRW42.88 billion in maturity extensions and deferred payments► For small businesses, credit card companies also provided about KRW4.47 billion in discounted interest rates and late fees, and about KRW380 million in deferred payment plans.FURTHER PLANSThe government will continue to review how the COVID-19 financing support measures are being provided to the businesses in need and ensure a prompt delivery to the affected companies.While closely monitoring the business needs, the government will draw up additional measures when necessary.* Please refer to the attached PDF for details.
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Feb 20, 2020

FSC Designates 9 More Financial Solutions for Regulatory Sandbox

The FSC designated nine additional financial solutions as ‘innovative financial services’ to be added to its regulatory sandbox program on February 19, 2020. The FSC has designated 86 ‘innovative financial services’ so far since the launching of the regulatory sandbox program on April 1, 2019.OVERVIEW OF NEWLY ADDED ‘INNOVATIVE FINANCIAL SERVICES’1. A type of health insurance coverage which pays back portions of insurance premiums to customers if no accidents occur (Mirae Asset Life)2. A group accident and life insurance for small businesses with less than 5 persons (Samsung Life Insurance)3. An online rental brokerage platform for housing appliances and other goods and services which provides rental fee payment and late fee management services to rental companies (Shinhan Card)4. A safe credit card payment service for peer-to-peer used car sales transactions on online used car payment platforms (KB Kookmin Card)5. A mobile app-based real name verification service for bank customers who visit bank branches without a government issued identification (Industrial Bank of Korea)6 7. A real name verification service for opening bank accounts online using facial recognition technologies instead of a video call (KB Securities and Hanwha Investment Securities)8. An asset management assistance service which offers a comparison on different savings accounts offered by different banks that have yet to exceed depositor protection limits to help consumers supplement or diversify deposits (CB Financial Solution )9. A housing market price estimation service based on officially announced price and real transaction price information using big data analysis and machine learning technologies (Xai Land)* Please refer to the attached PDF for details.
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Feb 17, 2020

2020 Work Plan Focuses on Financial Innovation to Support Innovative Businesses

The Financial Services Commission along with other economic ministries presented the 2020 Work Plan on February 17, 2020. The FSC has outlined 10 key policy tasks for this year, which include a) redirecting capital flow toward SMEs and start-ups with innovative technologies and future growth potential, b) working on bold reforms in financial regulations while fostering convergence between new technologies and finance, and c) promoting inclusive finance and establishing a reliable financial safety net to support a comeback for those who have been discouraged by failed business attempts.The following are some of the key achievements so far in the areas of financial innovation.► Outstanding balance of movable asset lending by local banks doubled from KRW800 billion at the end of 2018 to KRW1.6 trillion by the end of 2019.► Outstanding balance of loans to SMEs by local banks increased from KRW610 trillion at the end of 2016 to KRW747 trillion by the end of 2019.► Number of newly listed companies on the KOSDAQ market rose from 82 to 108 between 2016 and 2019.2020 FINANCIAL POLICY TASKS1. REDIRECT CAPITAL FLOW TOWARD BUSINESSES FROM HOUSEHOLDS REAL ESTATES► Prevent capital concentration in the real estate market and introduce a new loan-to-deposit ratio which will encourage more corporate lending by financial companies.2. PROVIDE TARGETED SUPPORT TO 1,000 INNOVATIVE FIRMS► Select 1,000 innovative firms through a government-wide cooperation with other ministries and provide both financial and non-financial assistance in the amount of KRW40 trillion.3. ALLOW DIVERSE TYPES OF ASSETS TO BE USED AS COLLATERAL► Push for a revision of the Act on Security over Movable Property, Claims, etc. to introduce a lump-sum collateral system through which companies are able to collateralize a diverse set of assets including machinery, raw materials and inventory, and set up a movable collateral registry which will help collect collaterals and non-performing loans on behalf of f
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Feb 14, 2020

Measures to Improve Regulatory Framework on Hedge Funds

The Financial Services Commission and the Financial Supervisory Service unveiled on February 14, 2020 an evaluation of hedge fund market and the measures to improve its regulatory framework. The measures are intended to ensure the autonomy of private fund management while addressing regulatory inadequacy and vulnerabilities found in the assessment by introducing a minimum necessary level of regulations.BACKGROUNDHedge funds play an important role in providing venture capital in startup investment ecosystem from business setup to scale-up to exit. However, the recent misselling, inadequate liquidity management and unlawful and/or unfair activities in the market have shown the necessity to improve the regulatory framework.Against this backdrop, the government unveiled on November 14 last year the Measures to Strengthen Investor Protection with High-risk Investment Products, which a) prevented sales of public offering funds in the form of private funds, b) placed stronger investor protection for ‘highly complex investment products,’ c) raised entry requirements for retail investors from KRW100 million to KRW300 million, and d) tightened regulation standards for financial companies selling OEM funds.From November 2019 to January 2020, the government conducted a review on the hedge fund market to assess potential risks and vulnerabilities. The assessment was made on 52 asset management companies and 1,786 private funds worth KRW 22.7 trillion. Most hedge funds did not show risky operation methods or investment structures unlike the large scale suspension of redemption cases surfaced recently.Based on this market review, the government has prepared the following measures in order to strengthen investor protection and ensure credibility in the market.KEY MEASURESI. ENHANCE RISK MANAGEMENT BASED ON MARKET DISCIPLINESThe government will work to establish a foundation in which different market participants and players can provide a supervisory role and “checks and balan
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Feb 13, 2020

FSC to Hold Information Session on Revised Credit Information Act

The Financial Services Commission will hold an information session on February 20, 2020 on the amendment of the Credit Information Use and Protection Act, which is scheduled to take effect starting August 5, 2020. The information session will provide useful information about the revised law, while offering the government a chance to listen to and gather opinions from diverse stakeholders. The FSC will revise relevant rules and regulations prior to the effective date while working to reflect public opinions.KEY FEATURES OF THE AMENDMENT► ESTABLISHING NEW LEGAL BASIS FOR USING AND ANALYZING BIG DATA- Pseudonymised personal information may be used without consent for statistical, industry research and public documentation purposes.- Converging data is permitted only by the institutions designated by the government.- Safety measures are established for the use and convergence of pseudonymised data, including a prohibition on re-identification of pseudonymised data and a requirement for separate management of additional information. ► STRENGTHENING THE ROLE OF PERSONAL INFORMATION PROTECTION COMMISSION- The revision bill on the Personal Information Protection Act upgrades the status of the Personal Information Protection Commission (PIPC) from an administrative commission to that of a central administrative agency with authority to conduct investigations, regulate commercial enterprises and implement relevant laws.► IMPROVING REGULATORY FRAMEWORK ON CREDIT BUREAU INDUSTRY- The credit bureau industry will be categorized into a) personal CB, b) individual business CB and c) corporate CB, while the entry barrier for credit bureau businesses will be lowered.- The current regulation which restricts credit bureau businesses from performing for-profit operations will be lifted, and credit bureau businesses will be allowed to conduct data analysis and processing as well as consulting.- Conduct regulations will be established to improve the soundness of the credit bureau in
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Feb 13, 2020

Government Will Ensure Prompt and Seamless Delivery of Financing Support to Businesses

FSC Vice Chairman Sohn Byungdoo convened a meeting on February 13, 2020 to review the progress of the recently unveiled financing support measures aimed at helping SMEs and small merchants amid the new coronavirus (COVID-19) outbreak.PROGRESSSince last Friday when the government unveiled the new financing support plan, policy banks issued a total of KRW20.1 billion (96 individual cases) in new loans and guarantees as well as loan and guarantee extensions to the SMEs, small merchants and self-employed business owners whose businesses have been hit by the spread of COVID-19.► (Loans) KRW1.8 billion in new loans and KRW2.5 billion in maturity extensions► (Guarantees) KRW3.6 billion in new guarantees and KRW11.8 billion in extensions► (Export financing) KRW400 million in credit extensionsLocal banks provided about KRW10.6 billion in new loans and maturity extensions to 23 businesses that have been affected by the spread of COVID-19.For small businesses, credit card companies also provided about KRW2.5 billion in discounted interest rates and late fees, and about KRW170 million in interest-free and deferred payment plans.FURTHER PLANSThe government will continue to review how the COVID-19 financing support measures are being provided to the businesses in need while ensuring a prompt and seamless delivery to the affected companies.While closely monitoring developments surrounding the COVID-19 and its impact on businesses, the government will draw up additional financing support if deemed necessary.* Please refer to the attached PDF for details.
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Feb 12, 2020

Government to Support Educational Programs to Cultivate Digital Finance Specialists

The Financial Services Commission and the Seoul Metropolitan Government will provide KRW19 billion over a 4-year period (2020-2023) to launch educational programs aimed at cultivating more specialists in digital finance.Digital finance provides financial services using key innovations in information technology, such as big data and artificial intelligence. It has created new jobs and brought significant changes to how financial services are delivered.Due to rapidly accelerating digital transformation in the financial sector, the demand for more professionals working in digital finance has been rising.The degree and non-degree programs will offer advanced theory and practice courses on diverse areas, such as ‘IT deep learning,’ ‘big data crawling and text analysis,’ ‘cloud computing,’ ‘blockchain in finance,’ etc.The programs are targeted at the current financial industry workers, prospective fintech entrepreneurs, fintech professionals, and those who are preparing for financial sector jobs.The government will select an educational institution or a consortium in March to be designated as the digital finance education provider. Universities, research and/or other finance-related institutions are eligible to apply.* Please refer to the attached PDF for details.
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Feb 07, 2020

Government to Support Financing of SMEs and Small Merchants Hit by Coronavirus

The government announced on February 7, 2020 plans to make new financing reliefs available for SMEs and small merchants that have suffered losses due to the spread of the new coronavirus. The reliefs include new loans as well as maturity extensions of existing loans and guarantees by policy banks for SMEs and small merchants hit by the spread of the new coronavirus.FOR SMALL MEDIUM-SIZED ENTERPRISESI. NEW LOANSIn order to help SMEs with their business financing challenges, the government will provide about KRW1.9 trillion in new funds through policy banks.II. LOAN EXTENSIONSMEs and small merchants with existing loans or guarantees from policy banks that are facing a maturity date within six months may apply for a one-year extension of maturity date as well as a postponement of principal repayment for one year.III. EXPORT-IMPORT FINANCING SUPPORTThe new financing support is also available to SMEs having problems with purchase order payment or delivery of goods due to a lockdown in China’s Hubei province.IV. FRONTLOADING FUNDS FOR SMESKRW 230 trillion in new loans and guarantees allocated for SMEs this year will be frontloaded to help relieve challenges caused by the new coronavirus outbreak.FOR SMALL MERCHANTS SELF-EMPLOYEDSmall merchants and self-employed business owners who experience an abrupt decline in sales due to the spread of the new coronavirus may be eligible for new loans at low and/or fixed interest rates, or special guarantees.STRENGTHENING MARKET OVERSIGHTThe government will strengthen its efforts to monitor and prevent market abusive activities in the capital markets.* Please refer to the attached PDF for details.
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