Press Releases - Financial Services Commission

Press Releases

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Sep 08, 2022

Household Loans, August 2022

In August 2022, the outstanding balance of household loansacross all financial sectors rose KRW0.7 trillion, edging back up slightly from a decline in the previous month but maintaining a stable level overall.The financial authorities will continue to monitor the household debt growth to ensure that it is maintained at a stable level in order to help prevent it from posing risk to the economy. (Overall) Household loans across all financial sectors rose KRW0.7 trillion in August 2022. The growth rate (up 1.2%, y-o-y) has continued to slow down since the second half of 2021. (By Type) Mortgage loans grew at a slightly faster pace than the previous month and other types of loans fell at a slower rate, leading to an overall increase in the balance of household loans. - (Mortgage Loans) Mortgage-backed loans rose KRW2.8 trillion in August, edging up slightly faster than the previous month (up KRW2.5 trillion), as group lending for new apartment subscription increased. - (Other Types of Loans) Other types of loans dropped KRW2.1 trillion in August, edging down at a slower rate compared with the previous month (down KRW3.4 trillion), as credit loans and non-housing collateral loans declined. (By Sector) Household loans increased from the previous month in most sectors but showed a continuous trend of slowdown in the mutual finance sector (down KRW0.5 trillion) with a drop in nonmortgage loans. - (Banking Sector) Banks saw a rise of KRW0.3 trillion in household loans. Mortgage loans from banks grew KRW1.6 trillion,rising at a slower rate than the previous month (up KRW2.0 trillion), with group lending for new apartment subscription and jeonse loans going up KRW1.2 trillion and KRW0.9 trillion, respectively. Other types of loans fell KRW1.3 trillion, declining at a slower rate from a month ago (down KRW2.3 trillion), with credit loans edging down KRW0.9 trillion. - (Non-Banking Sector) In August, nonbanks saw an increase of KRW0.4 trillion in household loans, led by savings
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Aug 10, 2022

Household Loans, July 2022

In July 2022, the outstanding balance of household loansacross all financial sectors fell KRW1.0 trillion, showing a stable trend as the growth seen in Q2 turned back lower.The financial authorities will make efforts for a stable management of the household debt growth while working on effective implementation of the normalization of household loan regulations to help alleviate financing difficulties of non-speculative homebuyers. (Overall) Household loans across all financial sectors dropped KRW1.0 trillion in July 2022. The growth rate (up 1.7%, y-o-y) has continued to stay on a downward path since the second half of 2021. (By Type) Mortgage loans expanded at a slower pace than the previous month and other types of loans dropped at a greater level, contributing to the overall decline in household loans. - (Mortgage Loans) Mortgage-backed loans rose KRW2.5 trillion in July, slowing down from KRW2.8 trillion in the previous month. - (Other Types of Loans) Other types of loans dropped KRW3.6 trillion in July, falling at a faster rate compared with the previous month (down KRW2.1 trillion). (By Sector) Household loans in both the banking and non-banking sectors turned lower, but the growth trend continued in the savings bank (up KRW0.4 trillion) and insurance (up KRW0.2 trillion) sectors. - (Banking Sector) Banks saw a drop of KRW0.3 trillion in household loans. Mortgage loans from banks grew KRW2.0 trillion,rising from KRW1.4 trillion a month ago, as group lending for new apartment subscription and jeonse loans rose KRW1.3 trillion and KRW1.1 trillion, respectively. Other types of loans fell KRW2.2 trillion, declining at a faster rate from a month ago (down KRW1.2 trillion) as credit loans fell KRW1.9 trillion. -(Non-Banking Sector) In July, nonbanks saw a drop of KRW0.8 trillion in household loans, led by declines in the mutual finance (down KRW1.2 trillion) and specialized credit finance (down KRW0.2 trillion) sectors. (Assessment) Household loans across all financ
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Aug 03, 2022

FSC Announces Measures to Strengthen Financial Support for Business Transformation

The FSC unveiled a plan to provide financial support in the amount of about KRW1 trillion to companies pursuing business transformation to cope with changing digital and environmental conditions in order to help domestic companies regain their competitiveness edge and expand their business areas. Background In the process of responding to the COVID-19 pandemic, the rapidly changing business conditions such as digital transformation and carbon net zero movement have necessitated businesses to make changes at a greater level. Considering a slowdown in the level of business productivity, it has become necessary for companies to proactively seek structural transformation of their business in order to enhance the level of competitiveness. Measures to Support Business Transformation Currently, the Ministry of Trade, Industry and Energy (MOTIE)s standards for approving business transformation activities and the evaluation standards used by financial institutions remain different, so that it has been difficult to provide financing support to those that have been approved by MOTIE. Therefore, authorities will strengthen the pre-selection process to ensure that businesses that are eligible to receive financial assistance are selected as the entities pursuing business transformation by introducing a two-staged evaluation process (evaluation of disqualification criteria and evaluation of technological prowess). a) The business transformation support center will examinethe financial conditions of applicants and determine whether there are any reasons for disqualification. b) A technology credit bureau (TCB) will examine and determine the technological prowess and the viability of business model for those that have passed the evaluation of disqualification criteria. Through TCBs technology appraisal,the feasibility of new business model will be evaluated such as the potential for expanding sales, operating profit, etc., and the capability for capital expansion will be evaluated b
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Jul 12, 2022

Household Loans, June 2022

The outstanding balance of household loansacross all financial sectors rose KRW0.7 trillion in June 2022 with the pace of growth falling from the previous month (up KRW1.7 trillion).The trends in household loan continue to be on a stable path as the statistics for all financial sectors in H1 2022 fell (down KRW0.8 trillion) for the first time since the half-year statistics first became available in 2015.The financial authorities will continue to make efforts for a soft-landing of the household debt issue as there are possibilities of growing burdens on borrowers and risks to financial companies due to interest rate hikes. (Overall) Household loans in June 2022 increased KRW0.7 trillion across all financial sectors. The growth rate (up 2.7%, y-o-y), which fell back lower from a slight increase seen in the previous month, continued to stay on a downward path since the second half of 2021. (By Type) Mortgage loans grew at a faster rate compared with the previous month, but other types of loans dropped considerably to bring down the overall household loan growth level. - (Mortgage Loans) Mortgage-backed loans rose KRW2.8 trillion in June, growing at a faster rate from the previous month (up KRW1.5 trillion) due to brisk lending by banks and the mutual finance sector. - (Other Types of Loans) Other types of loans dropped KRW2.1 trillion in June, edging back lower from a temporary hike in the previous month as credit loans and non-housing collateral lending declined. (By Sector) Household loans in both the banking and non-banking sectors saw a slowdown in the growth level, but the downward trend seen throughout this year in the mutual finance sector has turned upward. -(Banking Sector) Banks saw an increase of KRW0.2 trillion in household loans, declining slightly from the previous month (up KRW0.3 trillion). Mortgage loans from banks rose KRW1.4 trillion,growing at a faster rate compared with the previous month (up KRW0.8 trillion), as jeonse loans (up KRW0.9 trillion) a
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Jun 13, 2022

Household Loans, May 2022

The outstanding balance of household loansin all financial sectors rose KRW1.8 trillion in May 2022, staying at a stable level despite a slight increase from the previous month (up KRW1.2 trillion).The financial authorities will continue to work on stably managing the growth of household debt. (Overall) Household loans in May 2022 increased KRW1.8 trillion across all financial sectors. The growth rate from the same month of the previous year was 3.4 percent, showing a halt in the declining trend seen from the second half of the previous year, but staying at a stable level in general. (By Type) Mortgage loans grew at a slower rate from the previous month but other types of loans including credit loans edged up slightly for the first time this year. - (Mortgage Loans) Mortgage-backed loans rose KRW1.6 trillion in May, showing a slowdown from the previous month due mainly to a drop in group lending for new apartment subscription (from KRW1.1 trillion to KRW0.2 trillion). - (Other Types of Loans) Other types of loans increased KRW0.2 trillion in May, edging up for the first time following a continued decline since the end of the previous year, with a growth in credit loans. (By Sector) Household loans in the banking sector went up at a slower rate compared to a month ago but the pace of the growth accelerated in the non-banking sector as credit finance companies and savings banks saw increases. - (Banking Sector) Banks saw an increase of KRW0.4 trillion in household loans, showing a decline from the previous month (up KRW1.2 trillion). Mortgage loans from banks rose KRW0.8 trillion,growing at a slower rate compared to the previous month (up KRW2.0 trillion), as jeonse loans expanded (up KRW1.1 trillion) but group lending for new apartment subscription edged lower (up KRW0.2 trillion). Other types of loans declined KRW0.5 trillion and fell at a slower rate compared to the previous month (down KRW0.9 trillion) as credit loans edged down KRW0.2 trillion. -(Non-Banking Sect
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Jun 03, 2022

Accounting Review Process to be Made More Expeditious and Transparent

The FSC introduced a plan to bring about improvements to the accounting review process with aims to prevent the prolonging of the review process and to ensure the protection of the right to defense for businesses undergoing scrutiny during the review process by the Financial Supervisory Service (FSS). The period of the review process will be one year in principle with a six-month extension allowed upon approval from Governor of the FSS for unavoidable reasons. To guarantee the right to defense for businesses undergoing scrutiny, improvements will be made to the contents of the prior notification form and the period for which businesses can access the QA document will be extended. Background An accounting review (or inspection) examines whether a companys financial statement and audit report have been prepared properly according to the relevant accounting and auditing standards. It is a supervisory function that seeks to protect various stakeholders such as investors and to encourage sound business management activities as well. Accounting review is an important aspect to bringing about innovation in capital markets and improving investor trust.Transparency in capital markets begins with the accuracy and promptness in the accounting information being disclosed and accounting review as a supervisory mechanism induces accurate accounting practices by businesses through identification and correction of inappropriate accounting information. In addition, under the principle-based IFRS system that recognizes diversity in accounting practices, accounting review provides guidance for businesses in conducting their accounting practices. The government has continued to make efforts to bring about improvements to the accounting review system since the accounting reform.With an introduction of the financial statement review system, the processing time for minor violations has been reduced considerably.The adoption of an adversary procedure during the review processhas helped to
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May 11, 2022

Household Loans, April 2022

The outstanding balance of household loansin all financial sectors rose KRW1.3 trillion in April 2022 as the decreasing trend seen since the beginning of this year came to a halt but staying at a stable level overall.The financial authorities will continue to closely monitor trends in household loans in order to help maintain its growth pace at a stable level and to prevent it from posing risk to the economy. (Overall) The household loan balance in April 2022 (up KRW1.3 trillion) edged up for the first time this year in contrast to a considerable drop observed in the previous month (down KRW3.6 trillion). However, the growth rate (up 3.1%, y-o-y) shows a continuing slowdown from the second half of the previous year. (By Type) Mortgage-backed loans went up slightly while other types of loans fell at a considerably slower rate, pushing up the total balance of household loans. Mortgage-backed loans in April rose KRW2.8 trillion, growing at a slightly slower rate compared to the previous month (up KRW3.0 trillion).Other types of loans edged down KRW1.6 trillion, declining at a significantly slower rate compared to the previous month (down KRW6.5 trillion), but keeping the trend of a slowdown from the end of last year. (By Sector) The balance of household loans edged up from the previous month in most sectors but the mutual finance sector (down KRW1.0 trillion) stayed on a downward trend due to a drop in non-mortgage types of loans. - (Banking Sector) The banking sector saw an overall increase of KRW1.2 trillion. Mortgage loans from banks rose KRW2.1 trillion, growing at a similar rate compared to the previous month (up KRW2.1 trillion).Other types of loans fell at a slower rate compared to a month ago (down KRW3.1 trillion), edging down KRW0.9 trillion as credit loans went down KRW0.5 trillion. -(Non-Banking Sector) In the non-banking sector, the household loan balance increased KRW0.1 trillion. Insurance companies (up KRW0.2 trillion), savings banks (up KRW0.3 trillion
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Apr 13, 2022

Household Loans, March 2022

The outstanding balance of household loansacross all financial sectors fell KRW3.6 trillion at the end of March 2022, continuing to show a steady decline as the pace of slowdown has picked up compared to the previous month (down KRW0.3 trillion).The balance of household loans in March grew 4.7 percent from a year ago, steadily declining from the second half of the previous year. By type, mortgage-backed loans in March increased KRW3.0 trillion,growing at a slightly faster rate compared to the previous month (up KRW2.6 trillion) but continuing to maintain the pace of a slowdown since the second half of the previous year. Other types of loans including unsecured loans fell KRW6.6 trillionled by the banking and mutual finance sectors, showing an accelerated pace of slowdown from the end of the previous year. By sector, the balance of household loans dropped KRW1.0 trillion in the banking sector as mortgage-backed loans went up KRW2.1 trillionbut other types of loans including credit-based loans fell KRW3.1 trillion.The nonbank sector saw a drop of KRW2.6 trillion, showing an accelerated rate of slowdown compared to the previous month (down KRW0.1 trillion) led by the mutual finance sectors. The trends in household loans continue to be on a stable path as the balance of household loans declined KRW3.6 trillion in March 2022 and fell considerably from the previous month. Although mortgage-backed loans increased KRW3.0 trillion, other types of loans including unsecured loans dropped significantly (down KRW6.5 trillion) due to increases in borrowing rates, an expanded application of the debt service ratio (DSR) rule on individual borrowers and a slowdown in housing transactions,leading to an expansion in the pace of slowdown in aggregate terms. The financial authorities will continue to closely monitor trends in household loans in order to help maintain its growth pace at a stable level. * Please refer to the attached PDF for details.
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Mar 10, 2022

Household Loans, February 2022

The outstanding balance of household loansacross all financial sectors dropped KRW0.2 trillion from the previous month at the end of February 2022 (up 5.6% y-o-y), showing a continuous slowdown from the second half of 2021. Both the banking and nonbanking sectors saw the balance of loans falling KRW0.1 trillion each in the household sector. * All financial sectors (y-o-y): +8.6% (Oct 2021)+7.7% (Nov)+7.1% (Dec)+6.3% (Jan 2022)+5.6% (Feb) By type, mortgage loans rose KRW2.6 trillion in February, showing a steady decline in the pace of the growth compared to the previous month (up KRW2.9 trillion). Other types of loans including credit loans fell KRW2.9 trillion,declining steadily since December 2021. In the banking sector, mortgage loans rose KRW1.8 trillion but other types of loans including credit loans fell KRW1.9 trillion. The balance of household loans in February shows a steady decline from the previous month. Mortgage loan is growing at a slower rate and credit loan has fallen continuously due to the household debt control measures put in place and a drop in housing transactions. The financial authorities will continue to make efforts to stably manage the growth of household debt. * Please refer to the attached PDF for details.
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Feb 22, 2022

11th Korea-Denmark Green Growth Alliance Meeting Discusses Role of Finance for Carbon Neutrality

The FSC announced that the 11th Korea-Denmark Green Growth Alliance Meeting was held in Seoul on February 22 where government officials, financial institutions and other private sector participants from both countries discussed the role of finance in seeking carbon neutrality.Todays meeting was the first such event between the two countries since the bilateral summit held on the sideline of the 2021 P4G Seoul Summit. FSC Chairman Koh Seungbeom delivered welcoming remarks at the beginning of the event emphasizing the critical role of financial sectors in responding to the climate crisis. In this regard, Chairman Koh said that the Korean government plans to continue to expand support for carbon neutrality and gradually mandate disclosure of sustainable management reports. In order to ensure stability in the financial system and preemptively tackle climate risks that may arise from the process of seeking carbon neutrality, Chairman Koh stated that the Korean authorities are planning to introduce climate stress tests and will help establish a climate risk management system in the financial sector. The meeting consisted of four discussion sessions including (a) how governments can unlock private investments in climate solutions, (b) financial potential in de-carbonizing the hard-to-decarbonize sectors, (c) attracting investors to clean energy projects (lessons learned) and (d) ways to contribute to carbon neutrality in the financial sector. As it was the first time the two countries held a meeting after their relationship was elevated last year to a comprehensive green strategic partnership, it is expected that Koreas bilateral cooperation with Denmark will be strengthened in the climate change and environment sectors. * 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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Feb 10, 2022

Household Loans, January 2022

The outstanding balance of household loans fell KRW0.7 trillion across all financial sectors at the end of January 2022 (up 6.3% y-o-y),showing a continued slowdown in the growth rate. The household loan balance dropped KRW0.4 trillion in the banking sector and KRW0.3 trillion in the nonbanking sector. All financial sectors (y-o-y): +9.2% (Sep 2021) +8.6% (Oct) +7.7% (Nov) +7.1% (Dec) +6.3% (Jan 2022) By type, mortgage loans rose KRW2.9 trillion in January, rising slightly more than the previous month (up KRW2.6 trillion) but staying at a stable level. Other types of loans including credit loans fell KRW3.6 trillion, showing a steady decline from the previous month (down KRW2.4 trillion), due to seasonal factors and the expanded application of the debt service ratio (DSR) rules on individual borrowers. The financial authorities will continue to work for stable management of the household debt growth in 2022 while seeking measures to improve the qualitative structure of household debt. * Please refer to the attached PDF for details.
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Jan 19, 2022

FSC Holds Kick-off Meeting for Making Indemnity Health Insurance More Sustainable

The FSC held a kick-off meeting of the public-private joint consultative body for making improvements to the indemnity health insurance system on January 19. The consultative body made up of officials from the relevant government and regulatory agencies, research institution and industry groups was established to refine the complementary function of indemnity health insurance offered by the private sector and guarantee its sustainability alongside the state-operated National Health Insurance (NHI) program. At the kick-off meeting, officials discussed the following issues and areas where improvements can be made. a) Sustainability issue related to the insurance premium hikes and cost burdens on the insured, excessive medical treatments and nonessential hospital visits, etc. b) Convenience issue related to the complicated offline insurance claims process c) Complementariness issue concerning the relationship with the state-operated NHI system particularly in the area of out-of-pocket expenses (copayments) d) Transition issue as the indemnity health insurance 4.0 became available from July 2021 Starting from the end of January, the FSC will set up working level groups with industry officials and experts to discuss and look into detailed areas where improvements can be made to the indemnity health insurance system. The FSC will continue to closely coordinate with the relevant ministries to help reduce costs for insurance and medical services. * Please refer to the attache PDF for details.
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Jan 14, 2022

FSC Chairman Meets with Private Thinktank Officials to Discuss Policy Issues

FSC Chairman Koh Seungbeom met with the heads of private thinktanks on January 14 and held talks on financial market conditions, industry forecasts and relevant policy issues. At the meeting, thinktank officials suggested ideas on (a) facilitating digital transformation and boosting competitiveness in the financial industry, (b) fostering an environment for fair competition between financial institutions and big tech businesses, (c) promoting capital markets while guaranteeing investor protections, (d) providing support for preemptive risk management by financial companies and (e) introducing new ways to deliver financial services in line with the changing socioeconomic and market conditions, such as the rise of gig workers and financial companies moves to carbon net zero management. Chairman Koh stated that the financial authorities will take their suggestions into account when implementing various policies in 2022 and pledged to pursue the following measures(a) upgrading relevant regulations to allow expansion of business areas for financial companies in line with shifting conditions in financial markets while promoting digital transformation and more platform-based services, (b) applying the principle of same rules for same services when dealing with the relationship between big tech businesses and financial companies, (c) seeking innovative ways to promote capital markets while ensuring investor safeguards, (d) encouraging prudent management and strengthening soundness of financial institutions in different sectors and (e) promoting alternative methods of evaluating credit using non-financial data and pursuing policies related to climate change and carbon net zero goals. * Please refer to the attached PDF for details.
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Jan 13, 2022

Household Loans, December 2021

The outstanding balance of household loans in all financial sectors rose KRW0.2 trillionfrom the previous month at the end of December 2021, showing a significant decline in the growth rate. The household loan balance dropped KRW0.2 trillion in the banking sector while rising KRW0.4 trillion in the non-banking sector. The grow rate across all financial sectors in 2021 was 7.1 percent, a slowdown from 8.0 percent in the previous year. Household Loans (in trillion won): 8.6 (Aug 2021) 7.8 (Sep) 6.1 (Oct) 5.9 (Nov) 0.2 (Dec) By type, mortgage loans rose KRW2.6 trillion in December, declining from KRW3.9 trillion in the previous month due to a slowdown in housing transactions. Other types of loans including credit loans fell KRW2.4 trillion with the end of the year effect. The accelerated growth rate in household loans over the past two years amid the pandemic appears to have entered a stable path with the overall growth rate standing at 7.1 percent in 2021. The financial authorities will continue to work on various measures to contain the household debt growth to ensure effective risk management while allowing a continuation of credit extension to the financially vulnerable groups. * Please refer to the attached PDF for details.
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Dec 23, 2021

FSC Plans to Adjust Card Processing Fee Rates

The FSC announced a plan to adjust card processing fee rates on December 23 with an aim to ease fee burdens on small merchants and self-employed business owners. The rate adjustments for both credit and debit card processing fees are designed in a way to ensure that businesses with lower earnings will receive larger reductions in fee rates as shown below. Changes in Credit Card Processing Fee Rates* *Rate changes for debit card processing fees are shown in parentheses. a) For businesses with annual sales of up to KRW300 million, the fee rate will be lowered 0.3 (0.25) percentage points from 0.8 (0.5) percent to 0.5 (0.25) percent. b) For businesses with annual sales of more than KRW300 million and up to KRW500 million, the fee rate will be lowered 0.2 (0.15) percentage points from 1.3 (1.0) percent to 1.1 (0.85) percent. c) For businesses with annual sales of more than KRW500 million and up to KRW1 billion, the fee rate will be lowered 0.15 (0.10) percentage points from 1.4 (1.1) percent to 1.25 (1.0) percent. d) For businesses with annual sales of more than KRW1 billion and up to KRW3 billion, the fee rate will be lowered 0.1 (0.05) percentage points from 1.6 (1.3) percent to 1.5 (1.25) percent. Pursuant to the revision of the Specialized Credit Finance Business Act in 2012, the authorities are required to make adjustments to the card processing fee rate every three years based on a reassessment of total eligible expenses. The authorities expect that the fee rate adjustment scheme drawn up for 2022 will help reduce fee burdens of about KRW470 billion on businesses. It is expected that about 60 percent of benefits from the cut will be directed toward businesses with earnings of up to KRW300 million per year. Some 30 percent will be given to those in the KRW300 million to KRW1 billion range with the rest of the benefit going to the businesses in the KRW1 billion to KRW3 billion range. In order to help boost the competitiveness of the card industry, the authorities wi
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Dec 08, 2021

Household Loans, November 2021

The outstanding balance of loans to households in all financial sectors increased KRW5.9 trillion at the end of November 2021 (up 7.7% y-o-y).The balance of household loans rose KRW2.9 trillion each in the banking and non-banking sectors, showing an overall decline from the previous month. All financial sectors (y-o-y): +10.0% (Jul) +9.5% (Aug) +9.2% (Sep) +8.6% (Oct) +7.7% (Nov) By type, mortgage loans went up KRW3.9 trillion in November, growing at a slower rate compared with the previous month (up KRW5.2 trillion) due to a continuous fall in housing transactions. Other types of loans including credit loans grew at a faster rate (up KRW2.0 trillion) compared with the previous month (up KRW0.9 trillion) due to an increased demand for IPO subscriptions in the last week of November. The growth of household loan balance has been steadily declining with the rise in credit loans also at a stable level. The financial authorities will continue to work on effective implementation of the household debt management measures introduced in October. * Please refer to the attached PDF for details.
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Nov 29, 2021

FSC and BOK Launch Mobile App Providing Detailed Information on Bank Branches and ATM Locations

The FSC and the Bank of Korea announced that a new mobile application (www.accountinfo.or.kr) providing detailed information about bank branches and ATM locations will go into service from November 29. The new mobile application integrates data and provides regularly updated branch information about banks, deposit taking nonbanks, such as Korea Post, savings banks and mutual finance companies, as well as securities firms. The information provided include operating hours, contact information, list of services available at a branch, service fees, language services offered and the availability of assistance for persons with disabilities. The mobile application also offers an ATM locator service which will help consumers find an ATM near them anywhere in the country and find out about the list of services available at a particular ATM and information on fees. With an automatic daily update of the database, information provided on the mobile application will be kept up to date with a high degree of accuracy. The establishment of an integrated database on branch information will also help the financial sector with a more effective management and operation of their branch offices, ATMs, etc. The authorities expect to see an increase in accessibility to financial services and much improvements in consumer convenience. The FSC and the Bank of Korea will continue to work with the financial sector in helping to strengthen financial inclusion. * Please refer to the attached PDF for details.
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Nov 24, 2021

FSC Revokes Business License of Optimus Asset Management

The FSC decided to issue a revocation of business license on Optimus Asset Management along with other penalty measures imposed on its employees at the 21st regular meeting held on November 24. Pursuant to the Financial Investment Services and Capital Markets Act, the FSC decided to revoke Optimus Asset Managements business license (effective immediately) for numerous counts of violations and inappropriate fund management activities linked to the large-scale redemption freeze causing massive investor damages in 2020. The FSC also decided to impose a fine of KRW114.4 million on Optimus Asset Management and order removal of key board members. The FSC also ordered a transfer of 43 funds in total that are currently managed by Optimus Asset Management to a new fund management companyRecovery Asset Managementthat has been set up by collective efforts of fund sellers. The FSC has designated the Korea Deposit Insurance Corporation to oversee Optimus Asset Managements liquidation process. The authorities will closely monitor the liquidation process and work on effective supervision to ensure that the transferred funds are properly managed by the newly appointed fund management company according to relevant laws. * Please refer to the attached PDF for details.
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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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