Press Releases - Financial Services Commission

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Dec 16, 2019

FSC Approves Internet-only Bank License for Toss Bank

The FSC decided to grant ‘Toss Bank’ a preliminary license to operate internet-only bank on December 16. After receiving three applications on October 15, the Financial Supervisory Service formed an evaluation committee to review their applications, which took place on December 12-14.For ‘Toss Bank,’ the evaluation committee concluded that its business plan showed a sufficient level of innovativeness, inclusiveness and stability. Meanwhile, the committee decided that the application by ‘Soso Smart Bank’ did not show a sufficient level of preparation in terms of its financing and business plans. One of the applicants, ‘Familia Smart Bank,’ submitted a notice for withdrawal on December 11 prior to the review by the evaluation committee.‘Toss Bank’ may begin its operation within 6 months of getting a final approval from the FSC.* Please refer to the attached PDF for details.
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Dec 16, 2019

FSC Unveils Revised Guidelines for Financial Consumer Protection

The FSC unveiled a revision to the Guidelines on Financial Consumer Protection on December 16 in order to continue to encourage financial institutions to take more responsibility in consumer protection prior to the enactment of the Financial Consumer Protection Act by the National Assembly. The revised guidelines, which will go into effect on January 1, 2020, contain measures to enhance consumer protection function of financial institutions.KEY MEASURESI. ENCOURAGE CHIEF EXECUTIVES TO LEAD CONSUMER PROTECTION EFFORTS► Within financial companies, the position of chairperson of financial consumer protection council will be assumed by company’s chief executive officer (CEO) in order to boost the status of financial consumer protection council. The government will recognize an exemption to this rule and allow chief consumer officer (CCO) to assume the role of chairperson provided that the company has received an above ‘satisfactory’ rating on its consumer protection record.► In order to promote a comprehensive consumer issue management system in financial companies, the role and authority of financial consumer protection council will be boosted. When launching new products, the council has the authority to conduct impact analysis on consumers, review results of advertisement compliance assessment by relevant authorities and examine new or revised product information.► Financial institutions will be encouraged to hire a sufficient level of consumer protection specialists while coordinating with relevant departments, such as customer relations, product development and sales.II. GRANT MORE INDEPENDENCE AND AUTHORITY FOR CHIEF CONSUMER OFFICERS► Financial companies managing large amounts of assets and have a high frequency of consumer complaints reported within a particular region should appoint an independent chief consumer officer (CCO) among its board members.► CCOs should be given sufficient authority to oversee issues concerning consumer protection. By
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Dec 12, 2019

FSC Finalizes Measures to Strengthen Investor Protection with High-risk Investment Products

FSC FINALIZES MEASURES TO STRENGTHEN INVESTOR PROTECTION WITH HIGH-RISK INVESTMENT PRODUCTSThe FSC announced a finalized plan to strengthen investor protection with high-risk investment products on December 12. Taking into account opinions from the financial industry, the finalized plan includes detailed measures and amendments to the original plan announced on November 14. SUPPLEMENTARY AMENDED MEASURESI. STANDARDS FOR ‘HIGHLY COMPLEX’ INVESTMENT PRODUCTS‘Highly complex’ investment products will be determined by the following criteria: (i) the complexity of structure in investment products, (ii) the amount of possible loss and (iii) whether investment products are listed or not. In the case that financial companies are unable to determine whether an investment product qualifies as ‘highly complex,’ they may request a decision by the Korea Financial Investment Association and the FSC.II. VALIDITY FOR CLASSIFICATION OF INVESTORS BY RISK APPETITEThe classification of investors by their risk appetite will be valid for 1-2 years, shorter than the previously announced 1-3 years, to ensure a more up-to-date classification.III. SCOPE OF UNFAIR SALES PRACTICEUnderestimating the riskiness of ‘highly complex’ investment products and selling them as mid-risk products will be classified as ‘unfair sales practice,’ which will face strict punishment.IV. CLARIFICATION OF BUSINESS SCOPE BETWEEN FUND MANAGERS AND SELLERS The scope of business between fund managers and sellers will be specified to determine whether a fund belongs to an OEM fund or not. A fund does not belong to an OEM fund if:(i) fund managers and sellers discuss investor demand and market trend without specifying investment targets or management methods;(ii) they exchange general information irrelevant to the establishment and management of funds; and(iii) they keep records of their discussion with relevant internal control V. LIMITED PERMISSION FOR BANKS TO SELL ‘HIGHLY COMPLEX’ INVESTMENT P
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Dec 10, 2019

Vice Chairman Speaks on Embracing Digital Transformation in Financial Industry

Vice Chairman Sohn Byungdoo attended the 6th International Financial Cooperation Forum hosted by the Financial Services Commission and the Council on International Financial Cooperation on December 10. This year’s forum was held on the theme of ‘Embracing Digital Transformation: The Future of the Financial Industry.’Vice Chairman Sohn delivered welcoming remarks at the forum, underscoring the three characteristics brought by digital transformation, such as hyperconnectivity, platform economy and the big blur. The Vice Chairman stated that the government has recently unveiled measures to support fintech start-ups to scale up, through easing entry restrictions to the financial industry, establishing a fintech-friendly IPO environment, expanding financial infrastructures for digital transformation and supporting fintech firms with overseas business opportunities.Vice Chairman Sohn also added that maintaining close communication with other countries is essential for information sharing and policy cooperation.* Please refer to the attached PDF for details.
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Dec 05, 2019

Measures to Improve Management of Risk Exposure in Project Finance

The government introduced its plans to improve the management ofrisk exposure in real estate project finance on December 5.BackgroundProject financing in real estate is a financing mechanism based onthe business value of the project and the expected cash flows of the project inthe future. Due to the recent financial deepening and continuing low yields,project financing has increased significantly. Project financing provides an efficientway to finance real estate or infrastructure development projects.However, due to heavy reliance on the expected value of theproject, risk exposure is highly dependent on market conditions. Without propermanagement of risks, or in the case of a distortion of profits or risks, it maypose a threat to financial stability.Risk exposure in project financing has continued to increase especiallyin non-bank sectors since 2013. The prevalence of high-risk project financingloans, such as bridge loans, has dropped whereas the level of exposure bysecurities companies and specialized credit finance companies increased. Debtguarantees in project financing also increased as the burden of credit exposureshifted from construction companies to financial institutions.Recent TrendsAt the end of June 2019, the total amount of debt guarantees inproject financing stood at KRW28.1 trillion, out of which KRW26.2 trillion issuedby securities companies. The outstanding loan balance in project financing stoodat KRW71.8 trillion, rising on average 11.6 percent a year from KRW39.3trillion at the end of 2013. By the end of June 2019, both the default rate andthe sub-standard asset ratio continued to decline since 2013 from 13.0 percentto 1.9 percent and 16.9 percent to 3.0 percent, respectively, due to anincreased volume in project financing loans.Key MeasuresI. Improvingthe Soundness of Debt Guarantees in Project Financing► Establishing anupper ceiling on debt guaranteesUnder the current system,securities companies face no upper limits on issuing debt guarantees
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Dec 04, 2019

Measures to Promote Fintech Scale-ups

The FSC announced measures to promote fintech scale-ups on December 4, which includes 24 key tasks in 8 different policy areas.BACKGROUNDThe government has been promoting the fintech industry as part of its innovation-led growth strategy amid digital transformation and the 4th industrial revolution. To this end, the government has introduced a financial regulatory sandbox, open banking, regulatory reforms and budget earmarks for fintech. In order to further develop Korea’s fintech industry and its ecosystem, the government plans to implement the following fintech scale-up strategies, which builds upon the progress made so far.KEY MEASURESI. IMPROVING THE CURRENT REGULATORY SANDBOX SYSTEM► Designate more than 100 ‘innovative financial services’ by the end of March 2020, which marks the one-year anniversary of launching the regulatory sandbox► Improve rules and practices in operating the regulatory sandbox: (i) protect innovative ideas and technologies through patents and intellectual property rights (e.g. providing legal counsel or expediting patent dispute resolution); (ii) impose a minimum level of additional requirements on ‘innovative financial services;’ and (iii) grant continuation of designation status through MA► Provide continuous support (e.g. costs on testing, security inspection, office space, etc.) for the entire cycle from designation of ‘innovative financial services’ to commercialization of innovative financial solutions.► Set up a supervisory framework tailored to the promotion of fintech firms – e.g. conducting supervision and inspection aimed at providing counseling or establishing regulatory grounds to grant fintech firms immunity in case of minor violations.II. PERFORMING REGULATORY REFORMS TO FACILITATE FINTECH DEVELOPMENT► Promote a flexible and dynamic regulatory environment where testing of ‘innovative financial services’ can lead to commercialization and ultimately to an improvement in regulatory reforms.► Con
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Nov 29, 2019

Vice Chairman Attends 9th Korea-China-Japan High-level Finance Authorities Meeting

Vice Chairman Sohn Byungdoo attended the 9th Korea-China-Japan High-level Finance Authorities Meeting held in Tokyo, Japan on November 29, and discussed ways to enhance trilateral cooperation.During the meeting, the three countries shared information and exchanged views on the latest issues facing each country.Vice Chairman Sohn spoke about the Korean government’s innovation-led growth strategy and fintech policy through which it aims to develop new industries and create new markets. He introduced the government’s efforts to bring about digital transformation in the financial sector through policies, such as regulatory sandbox and internet-only banks.Vice Chairman Sohn also talked about recent trends and risk factors in the global financial markets, such as prolonged low interest rates, while emphasizing the importance of cooperation among financial authorities to improve the level of stability in the financial system.The three countries agreed to hold the meeting regularly and continue to maintain cooperation.* Please refer to the attached PDF for details.
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Nov 28, 2019

FSC Signs MOU to Boost IP Financing for Regional SMEs and Startups

FSC Chairman Eun Sung-soo attended the 2nd Intellectual Property Finance Forum held on November 28, and signed a Memorandum of Understanding with the Korean Intellectual Property Office, regional banks and guarantee institutions to promote intellectual property (IP) financing for regional SMEs and start-ups.IP financing is an important source of raising capital for SMEs and start-ups that have outstanding technologies and yet lack collateral or credit records.The government unveiled the comprehensive measures to promote IP financing last year, and five private sector banks are currently offering IP-backed loans as well as the policy banks. The amount of newly issued IP-backed loans increased rapidly from KRW86.6 billion in 2017 and KRW88.4 billion in 2018 to KRW236 billion in October 2019.And yet, IP financing has been concentrated in the Seoul metropolitan area with a 68 percent of the total IP financing occurring in Seoul and Gyeonggi Province in the past five years.The government expects that this MoU will provide regional SMEs and startups an easier access to raising capital as it helps spread IP financing throughout different regions.Chairman Eun stated that IP financing will serve as an impetus for developing and spreading intellectual properties, and that the government will continue innovation in financial services by introducing a lump-sum collateral system and integrating the technology and the credit evaluation systems.* Please refer to the attached PDF for details.
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Nov 28, 2019

Revision Bill on Credit Information Act Moves Ahead at National Assembly

The National Policy Committee of the National Assembly approved a revision bill on the Credit Information Use and Protection Act on November 28. Along with the Personal Information Protection Act and the Act on Promotion of Information and Communications Network Utilization and Information Protection, this revision bill on the Credit Information Act is considered as a key legislation to promote data economy.KEY FEATURES► ESTABLISHING NEW LEGAL BASIS FOR USING AND ANALYZING BIG DATA- Pseudonymised information may be used without consent from the owner of the information 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 industry. Largest shareholders of personal CB and individual business CB businesses will be su
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Nov 27, 2019

Revision Bill to Introduce AML Requirements on Crypto Assets Moves Ahead at National Assembly

The National Policy Committee of the National Assembly approved a revision bill on Reporting and Using Specified Financial Transaction Information on Crypto Assets on November 25. The revised bill imposes anti-money laundering (AML) requirements on crypto-asset business operators and stipulates requirements with which financial institutions must comply in transaction with crypto-asset business operators.The revision bill will be reviewed by the Legislation Judiciary Committee before it is presented at a plenary session for the final passage. If passed at the National Assembly, the bill will take effect one year after promulgation.KEY FEATURES ► REQUIREMENTS FOR CRYPTO-ASSET BUSINESS OPERATORS Crypto-asset business operators are required to report their transactions to the Korea Financial Intelligence Unit (KoFIU) under the FSC; subject to basic AML requirements (e.g. customer due diligence, suspicious transaction reporting, etc.); and bound to follow additional obligations such as keeping separate transaction details for users. If crypto-asset business operators fail to report to KoFIU, they may face criminal penalties of maximum five years of imprisonment or fine of up to KRW50 million.► REQUIREMENTS FOR FINANCIAL INSTITUTIONS Financial institutions are required to conduct customer due diligence on crypto-asset business operators and check whether they report their crypto-asset business to KoFIU and maintain customer deposits in a separate account. If crypto-asset business operators fail to report their business to the KoFIU or are deemed as high-risk for money laundering, financial institutions are obliged to refuse (or terminate) such transactions.► EFFECTIVE DATE The bill will take effect one year after its promulgation to give crypto-asset business operators and financial institutions time to adapt and prepare for the new regulatory regime. It will also give existing crypto-asset business operators a six-month transition period to report to KoFIU after th
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Nov 27, 2019

New Bill on Financial Consumer Protection Moves Ahead at National Assembly

The National Policy Committee of the National Assembly approved a Financial Consumer Protection Bill on November 25. As a key policy agenda of the Moon Jae-in administration, this legislation will help enhance the rights of financial consumers and improve the overall public trust in the financial industry. KEY FEATURES I. SIX SALES REGULATIONS TO BE APPLIED TO ALL FINANCIAL PRODUCTS The six major sales regulations currently applied to selected financial products by separate laws, such as the Financial Investment Services and Capital Markets Act, will be applied to all financial products. II. STRICT PUNISHMENT FOR VIOLATIONS OF SIX SALES REGULATIONS The new legislation established a legal basis to impose punitive fines for violating the major sales regulations (except the principle of suitability and the principle of adequacy regulations); integrated divergent penalty criteria currently under different laws into a unitary penalty system; and established a legal basis to impose a penalty of up to KRW30 million for violating the principle of suitability and the principle of adequacy regulations. III. PREVENTION OF CONSUMER DAMAGES FROM MISSELLING EFFECTIVE REMEDIES A new set of consumer rights and arrangements will be introduced to prevent consumers from falling prey to misselling and other unfair sales practices and provide more effective remedies in the afterwards. - Consumers will be entitled to the right to withdraw subscription, to terminate contract if it is deemed to be in violation of laws, and to request information for the purpose of dispute resolution or litigation. - FSC may order a cessation of sales of the relevant products when significant losses are expected to consumers. - The burden of proof in liability for damage cases remains with the seller. - Courts may decide to terminate lawsuits arising from unresolved conflict resolution cases. - Filing a lawsuit against an individual is prohibited until the conflict resolution case is finalized. IV. ENHANCED
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Nov 26, 2019

FSC Chairman Speaks on Importance of Innovation in Movable Asset-based Financing

FSC Chairman Eun Sung-soo visited a peer-to-peer lending firm Popfunding on November 26, and held talks on promoting innovative financial solutions through movable asset-based financing.During the talks, Chairman Eun stated that the traditional lending practice centered on real estate has begun to change due to government efforts to facilitate the development of financial products which recognize movables as collateral. Merely two years ago, movable asset-based financing remained unfamiliar. However, banks have set up a movable collateral management system using Internet-of-Things (IoT) as they led innovative initiatives in this field.As a result, the amount of movable asset-based loans rapidly increased from KRW735.5 billion at the end of last year to more than KRW1.2 trillion at the end of September 2019.Moreover, Chairman Eun emphasized that due to innovative ideas in movable asset-based financing, new solutions have emerged which would have been unlikely in the past. For instance, inventory as collateral has received relatively low attention compared to machinery or intellectual property due to difficulties in assessment and management. However, with movable asset-based financing, Popfunding began to offer e-commerce firms not only business loans at low to medium interest rates but also systematic inventory management and warehouse services.Chairman Eun said that more innovative solutions should be introduced in the field of movable asset-based financing in order to facilitate start-ups and SMEs.The government has announced a revision to the Act on Security over Movable Assets and Receivables on November 5, and plans to set up an organization that supports redemption of movable collateral in the first half of 2020.* Please refer to the attached PDF for details.
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Nov 21, 2019

FSC Designates 8 More Financial Solutions as 'Innovative Financial Services'

The FSC designated eight additional financial solutions as ‘innovative financial services’ to be accepted into financial regulatory sandbox on November 20. The FSC has thus far designated a total of 68 such innovative services since launching the financial regulatory sandbox in April this year.OVERVIEW OF NEWLY ADDED ‘INNOVATIVE FINANCIAL SOLUTIONS’1. A personalized asset management and financial advisory service based on big data analytics (Rainist), a monthly rent payment service with credit card (Shinhan Card), and a travel insurance service offering simpler application procedures (Bomapp Partner, Rainist and Plan Asset)2. A credit card reward points service which helps small merchants save on credit card transaction fees and offers them reward points on credit card sales amount on the next business day following credit card transaction (KB Kookmin Card) and a cloud based Value Added Network (VAN) service which aims to increase efficiency (Finevo)3. A financial fraud prevention service which monitors suspicious accounts and shares information on fraudulent activities with financial institutions (Korea Financial Telecommunications Clearings Institute)
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Nov 20, 2019

FSC Approves Shareholder Qualifications of KIH and KIVAM in Kakao Bank

The Financial Services Commission approved Korea Investment Holdings Co., Ltd.(KIH) and Korea Investment Value Asset Management (KIVAM)’s holdings of a 4.99 percent and 29 percent stake each in Kakao Bank on November 20. With the FSC’s approval, KIH is allowed to sell its 16 percent stake in Kakao Bank to Kakao and 29 percent stake to its subsidiary, KIVAM. That will make Kakao the largest shareholder with a 34 percent stake in Kakao Bank.* Please refer to the attached PDF for details.
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Nov 19, 2019

Financial Cooperation in ASEAN Region

BACKGROUNDASEAN is a large market which has achieved remarkable economic growth with its growing population. The population of the region is expected to rise to around 688 million by 2024. In the financial sector, Korea and ASEAN countries have made an effort to establish strategic partnership to promote economic and financial growth in ASEAN region.Korea has focused on enhancing financial cooperation with ASEAN by supporting Korean companies’ business operation in the region and promoting partnership in developing financial infrastructure.FEATURES OF FINANCIAL COOPERATION IN ASEAN REGION I. EXPECTATIONS OF HIGH PROFITSAs ASEAN has high growth potential, many companies and institutions in the financial sector are willing to expand their business in the region. In fact, as of June, 2019, the number of subsidiaries and branches opened by Korean financial firms reached 150 in ASEAN region, including Indonesia and Vietnam, rose 92% compared to the end of 2011. The asset of overseas subsidiaries and branches in ASEAN region accounts for 14% of the total asset; however, the profits account for 30% of the total profits.Subsidiaries and branches of Korean banks in ASEAN region have higher Return on Asset (ROA) compared to the banks in domestic market.II. DIVERSIFICATION OF OVERSEAS BUSINESS Korean financial firms diversify their overseas business by establishing non-bank financial institutions and investing in shares of non-banking financial firms in the region.For example, Shinhan bank started banking business in ASEAN region, and then it expanded their business into other financial services, including credit card, financial investment and consumer finance. This strategy helped the financial firm to advance into new markets by creating synergy effects among affiliates. III. LOCALIZATION Korean financial firms accelerate their expansion by establishing more subsidiaries than offices or branches. In the process of localization, Korean financial firms tend to consider the e
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Nov 18, 2019

Government Promotes Market-based Approach to Corporate Restructuring

FSC Chairman Eun Sung-soo participated in an MOU signing and launching event of a DIP financing company on November 18, and held talks with entrepreneurs and investors on market-based approaches to corporate restructuring.The following is a summary of Chairman Eun’s remarks:IMPORTANCE OF DIP FINANCINGFor businesses, it is very difficult to raise capital once they are labeled as ‘insolvent’ and have to go through a corporate rehabilitation process following a temporary crisis or setback due to changes in external environments.In this regard, for so many institutions to come together in support of providing new capital to help rehabilitate companies in financial distress through DIP financing is very meaningful. This will provide a new guideline in the process of debt settlement and business normalization.ESTABLISHING DIP FINANCING SUPPORT SYSTEMThere exist continuing anxieties about a slowing recovery of our economy. The hardship experienced by our industries and companies may be prolonged.As such, it is crucial to be well prepared in a preemptive and systematic way for a heightened demand for market-based corporate restructuring.The DIP financing company launched today will provide capital to SMEs that have difficulties raising funds in the market. For larger companies, the government will help establish a ‘DIP financing fund’ in the amount of KRW200 billion and provide support to competitive businesses at appropriate times.EXPANDING ‘CORPORATE RESTRUCTURING INNOVATION FUND’The government will increase the level of funds available for the ‘corporate restructuring innovation fund’ next year from the current level of KRW1 trillion to KRW2 trillion.It is crucial to establish sufficient capacity to provide support considering the fact that searching for appropriate investment targets takes a long time, often between 4 and 5 years.The ‘corporate restructuring innovation fund’ will have to play a supporting role as the market screens for competitive
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Nov 14, 2019

Government to Increase International Cooperation on Insurance Supervision

The Financial Services Commission and the Financial Supervisory Service became signatories to the International Association of Insurance Supervisors (IAIS) Multilateral Memorandum of Understanding (MMoU) on November 14.The IAIS MMoU was established in 2007 as a nonbinding agreement with the aim of ensuring stability in the insurance industry and protecting consumers through mutual cooperation on information sharing. As of November 2019, 71 regulatory agencies from 49 countries have become members.The FSC and the FSS submitted membership applications to the IAIS MMoU in November 2018, and the applications have been approved in July this year.The government expects that the membership status will enhance international cooperation of information sharing on insurance market activities and boost global awareness of Korea’s insurance industry.* Please refer to the attached PDF for details.
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Nov 14, 2019

Measures to Strengthen Investor Protection with High-risk Investment Products

The Financial Services Commission and the Financial Supervisory Service unveiled measures to strengthen investor protection with high-risk financial investment products in light of the recent derivatives-linked funds (DLFs) mis-selling cases. The reform measures are aimed at enhancing consumer protection and maintaining stability in the financial system, without jeopardizing private equity funds’ critical function of supplying venture capital.BACKGROUNDThe recent DLFs mis-selling controversy was caused by financial institutions’ attempt to sell high-risk funds to retail investors in private offering to avoid stringent regulation on public offering; loopholes in investor protection measures; and insufficient internal controls by financial institutions.The DLFs structured to track the yield of Germany’s 10-year government bonds or the performance of constant maturity swap (CMS) rates of the U.S. or the U.K. were sold to retail investors by two local commercial banks with sales balance of KRW795 billion as of August 7 this year.The losses were mostly accrued in September and October with an average loss of 52.7 percent with KRW99.1 billion reaching maturity and KRW97.8 billion redeemed. By November 8, the sales balance of the derivatives remained at KRW587 billion.Due to a rise in the value of underlying assets, such as the German 10-year government bonds, the expected loss of the derivatives with future maturity dates will be lower.REFORM MEASURESI. STRENGTHEN CONSUMER PROTECTION► Tightening standards for deciding a public offering fundThe standards for determining features of a public offering fund will be tightened to prevent funds that should have been a public offering fund from being sold in the form of a private fund to avoid stricter regulations, which apply to public offering funds. If a fund’s profit and loss structure is equivalent to that of its underlying asset, the fund shall be sold as a public offering fund.► Strengthening regulatory regime
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Nov 11, 2019

Achievements at a Glance with Statistics

The FSC announced the financial policy achievements during the first half of the Moon Jae-in administration. * Please refer to the attached PDF for details.
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Nov 08, 2019

FSC Standing Commissioner Attends FSB Plenary Meeting

FSC Standing Commissioner and Deputy Chairman for InternationalCooperation Choi Hoon attended the Financial Stability Board (FSB) plenarymeeting held in Paris, France on November 7. At the meeting, financialregulators from 25 FSB member countries and international organizations discussedthe current vulnerabilities in the global financial system, recent developmentswith stablecoins, and ways to enhance the effectiveness of the RegionalConsultative Groups (RCGs).Mr. Choi spoke about the need to strengthen internationalcooperation to effectively monitor and respond to developments in stablecoins, whileemphasizing that a global risk monitoring system should be based on flexibilityand adaptability to analyze their effects on the stability of financialmarkets.Speaking on the increasing connectivity in the global financialsystem, Mr. Choi said that establishing a comprehensive and effective globalfinancial regulatory network should take into account regional discrepancies inorder to prevent regulatory arbitrage.Mr. Choi added that as the host country of the RCG for Asia in2020, Korea will hold workshops on topics relevant to the needs of the regionalregulators, such as fintech development and its supervision.
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