Press Releases - Financial Services Commission

Press Releases

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Sep 06, 2005

Equity Disclosure Filings: First Half of 2005

An analysis of equity ownership disclosure filings during the first half of this year showed that a total of 2,413 investors held together with related parties 5% or more of the outstanding shares of 1,548 publicly-held companies—671 Stock Market (formerly KSE)-listed and 877 KOSDAQ-listed companies—as of the end of June. Five tender offers and 108 proxy solicitations were made during the period, compared with nine and 124, respectively, during the same period a year earlier.Disclosures Related to the 5% RuleThe number of disclosures filed under the 5% rule rose 2,038 or 55% to 5,718 from 3,680 a year earlier. Most of the increase resulted from investors re-filing disclosures as mandated under the amended 5% rule that took effect March 29 this year.A breakdown of the filings by investment purpose showed that, of the 2,413 investors who filed disclosures under the 5% rule, a total of 1,494 investors—1,417 domestic investors and 77 foreign investors—declared Exercising Influence on the Management as the intended investment purpose; the rest declared Investment Only as the intended investment purpose.Disclosures on Tender OffersA total of five tender offer-related disclosures were filed during the first half of the year. Of the five, four were intended for going private and the other as a defensive move against potential hostile takeover bids. All five were filed by local investors and companies. A year earlier, there were a total of nine tender offer filings, of which three were by foreign entities.Disclosures on Proxy SolicitationA total of 108 disclosures were made for proxy solicitations during the first half of the year. Of the total, 93 were for meeting the quorum requirements in the general shareholders’ meetings; the rest was for proxy contests. One of the proxy solicitation disclosures was filed by Crest Securities on behalf of Sovereign for SK Corporation’s general shareholders’ meeting.* Please refer to the attached PDF for details.
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Jul 29, 2005

Amended Regulation on Outsourcing by Financial Services Companies Takes Effect July 27, 2005

The FSC/FSS announced on July 26 that the newly amended Regulation on Business Delegation of Financial Institutions took effect July 27, 2005. The newly amended regulation is a major deregulatory step that significantly broadens the range of activities that can be outsourced by financial services companies and help them utilize outsourcing more efficiently. One of the key changes to be implemented under the amended regulation is a shift from a positive regulatory regime that provides for activities financial services companies may outsource to a negative regulatory regime that provides for activities financial services companies may not outsource. Thus, as a general rule, financial services companies will be allowed to outsource activities unless the regulation specifically provides otherwise. The following is a summary of the newly amended regulation on outsourcing.Expanded outsourcing by financial services companies• Adoption of negative regulatory regime for outsourcingAs a rule, outsourcing is to be allowed for financial services companies unless the activity to be outsourced (i) constitutes a part of the core business activities of the financial service company; (ii) is mandated under the law to the financial service company, or (iii) poses risk to the soundness of the financial services company, undermines orderly conduct of their business, or causes consumer harm. In addition, the core business activities of financial services companies are specifically provided for so that non-core activities may be outsourced without undue discretionary intrusion from the regulators.• Back-office support activitiesThe amended regulation newly defines outsourcing as utilizing the services or the facility of a third party in order to perform financial services activities approved by the FSC/FSS and provides that outsourcing encompasses the back-office and other support activities of financial services companies. As a general rule, outsourcing is to be allowed for back-off
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Jul 22, 2005

SFC to file criminal complaints against two individuals and an investment fund for illegal securities trading

The Securities and Futures Commission announced on July 22 that it had completed deliberations on the findings of the investigation of trading of a listed company’s shares by an investment fund (“H”)* and decided to file criminal complaints with the Supreme Prosecutors’ Office against H, its former director of emerging markets (“R”), and a broker at an overseas subsidiary of a local securities company (“K”). The complaints will allege that R and K engaged in a scheme to manipulate trading of shares of a listed company (“S”) and that H, as R’s principal, was liable for his illegal activities.Findings of Investigation by Financial Supervisory ServiceThe investigation by the Financial Supervisory Service found that R acquired 7,772,000 common shares (5%) of S through H’s account between November, 2003, and March, 2004, and 8,300 preferred shares of S on his own personal account on March 3, 2004, and conspired with K to manipulate trading of S shares by repeatedly portraying the company as a potential takeover target through the news media. R also repeatedly urged S publicly to buy back its preferred shares and retire them.After S publicly made a share buyback offer for its common and preferred shares on November 26, 2004, R raised the prospect for hostile takeover bids for the company and expressed his support for such attempts in an interview he arranged with a widely circulated local newspaper on November 29, 2004. R also expressed his support for retirement of S’s preferred shares in the interview. The interview, which was published on December 1, 2004, prompted heavy trading and bidding up of S’s shares among investors and effectively provided artificial support for price and trading volume R sought to unload H’s substantial holdings in S two days later.On December 3, 2004, R sold off all of H’s holdings in S and realized gains totaling KRW29.2 billion (US$ 28.0 million). On the same day, R also sold off all of his own preferred shar
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Jul 22, 2005

Deutsche Bank Seoul Branch and BNP Paribas Seoul Branch Issued Severe Disciplinary Warning

The Financial Supervisory Commission announced on July 22 that the Seoul branch of Deutsche Bank and the Seoul branch of BNP Paribas would be issued a severe disciplinary warning for engaging in improper non-standardized OTC derivatives contracts with state-owned companies. The FSC also issued (1) suspension of duties for a period of one month for the head of the Seoul branch of Deutsche Bank, and(2) a censure for the head of the Seoul branch of BNP Paribas and recommended (3) dismissal for one employee and a reprimand for another of the Seoul branch of Deutsche Bank, (4) a three-month pay reduction for one employee of the Seoul branch of BNP Paribas, and (5) a three-month pay reduction for one employee and a reprimand for another of the Seoul branch of Barclays Bank for their involvement in the derivatives contracts. Each of the three banks cited by the FSC today will also be expected to submit a written agreement detailing specific steps to be taken to prevent improper derivatives business activities. In announcing the decision on foreign bank branches, the FSC noted that, because there was no precedent to the actions it took, regulators conducted extensive and thorough review of actions taken by foreign regulators in similar cases and the trading customs and practices in overseas derivatives markets as well as actions taken on domestic banks for poor internal controls and the customs and practices in the derivatives market at home.The actions the FSC announced today are based on the findings of examinations the Financial Supervisory Service conducted on four foreign bank branches—including the two Seoul branches of Deutsche Bank and BNP Paribas—following the general examination of the National Agricultural Cooperative Federation the FSS conducted in July 2004. The July 2004 examination of the NACF uncovered, among others, a large illicit payment scheme involving employees of the NACF and the Seoul branch of Deutsche Bank and intermediaries who helped to arran
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Jul 14, 2005

Draft Proposals on Reducing Regulatory Compliance Burden of Publicly-Held Companies Released

The FSC/FSS released on June 28 draft proposals put forth by Korea Securities Research Institute to reduce regulatory compliance burden faced by publicly -held companies. The draft proposals are the result of a joint effort between KSRI and a task force made up of experts and representatives from the FSC/FSS, Korea Exchange, Korea Listed Companies Association and KOSDAQ Listed Companies Association.Regulatory reform on accounting, disclosures and corporate governance for publicly-held companies has significantly boosted investor protection and market transparency in recent years. While these are clearly welcome and positive developments for the market, there has also been a growing recognition that the increasingly demanding rules and regulations are raising costs and compliance burden on publicly-held companies. In a recent survey of 201 listed companies, 25% of the respondents said that the benefits of staying as a publicly-held company were outweighed by the costs. Compliance with prompt disclosures and listing requirements, potential costs of class-action litigations, and high legal and regulatory standards for corporate governance were frequently cited by publicly-held companies as sources of concern.The draft proposals are intended to address these issues so that listed companies are not unduly restrained by regulatory compliance burden. The FSC/FSS expects to come up with more concrete measures from the draft proposals that can be implemented through supervisory regulations or by the self-regulatory organizations of Stock Market Division (formerly KSE) and KOSDAQ Market Division at the Korea Exchange by the end of the year after further deliberations and consultations (After the passage of the Sarbanes-Oxley Act in 2002, the S.E.C. of the U.S. also created an advisory committee in March this year to look into reducing listing burden on small companies going public for the first time).As summarized next, the draft proposals are divided along four general areas
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Jul 07, 2005

FSS Instructors Conduct Training on Financial Supervision at the Department of State Financial Inspection of Mongolia

Instructors from the Financial Supervisory Service conducted a week-long training on financial supervision at the Department of Sate Financial Inspection (DSFI) of Mongolia from June 27 to July 2. The FSS has been sharing its supervisory experiences and offering training on financial supervision to Asia’s emerging markets as a way to promote cooperation and foster close ties among the supervisory authorities in the region. The instruction had been planned since April at the invitation of the DSFI and covered insurance supervision and examination, insurance actuarial models and reserves, and supervision of non-bank financial institutions.Since the FSS invited DSFI staff for training on financial supervision in 2002, there have been three alternate training sessions between FSS and DSFI supervisors. Korea’s experiences with corporate and financial sector restructuring and financial supervisory policies were some of the topics discussed in these meetings. The FSS strongly supports training and staff exchange programs with foreign supervisory authorities and will continue to lend its support to the efforts of the supervisory authorities in Asia to improve financial supervision.* Please refer to the attached PDF for details.
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Jul 01, 2005

FSC/FSS Appoints Foreign Spokesperson to Improve Communication with the Foreign Business Community and Foreign News Media

The FSC/FSS appointed Douglas Kim a foreign spokesperson effective July 1 to help improve communication with the foreign business community and foreign news media. Douglas Kim has worked at the FSS International Cooperation Office since 2001. Prior to joining the FSS, he worked as an English editor at the International Tax Division, Ministry of Finance and Economy, as an economic research analyst at the Bureau of Economics, U.S. Federal Trade Commission, and as a statistician at the U.S. Patent Office in Washington, D.C. Mr. Kim received M.A. in Economics from Pennsylvania State University in May, 1992.* Please refer to the attached PDF for details.
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Jun 23, 2005

New Initiative to Improve Supervisory Work Processes for Foreign Financial Service Companies

The FSC/FSS announced a new initiative aimed at significantly improving supervisory work processes for foreign financial service companies as a complement to efforts currently under way to streamline the existing supervisory and regulatory processes and make them more efficient, dynamic and investor-friendly in support of the Financial Hub Initiative. One key objective of the new initiative is to help improve business environment for foreign financial service companies by promptly responding to supervisory and regulatory concerns or difficulties they may have and provide more active assistance and services on a timelier basis in light of language and other unique problems they encounter in Korea.Initially, the new initiative calls for the creation of International Supervision Support Office staffed by English-proficient professionals within the FSS and dedicated to providing a “one-stop” service to foreign financial service companies and the creation of International Supervision Advisory Committee. Supervisory matters relating to foreign financial service companies are to be put on fast track for accelerated review and decision-making by the committee.International Supervision Support OfficeThe International Supervision Support Office, to be made up of Foreign Financial Service Company Support Team and Northeast Asia Financial Hub Team, will put forth and implement regulatory reform and supervisory assistance measures for foreign financial service companies in support of the Financial Hub Initiative. The new office will also receive and oversee regulatory approval requests for new financial products from foreign financial service companies and resolve problems they may encounter with business activities under FSC/FSS supervision. Regulatory decisions involving the establishment of a new commercial presence and MA matters will continue to be handled by the appropriate supervisory department within the FSC/FSS. The Foreign Financial Company Support Team to be newl
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Jun 22, 2005

FSC/FSS to Launch Financial Statistics Information System for Foreign Investors in August

The FSC/FSS announced that Financial Statistics Information System (FISIS) would be available in English for foreign investors and other users through the FSS English website (http://english.fss.or.kr) in August. FISIS, a major upgrade from the monthly financial statistics in e-book format currently available in English, is an extensive, web-based database system capable of intuitive, user -friendly search on wide-ranging information and financial statistics from financial institutions. The English FISIS is identical to the Korean FISIS (http://fisis.fss.or.kr) except for a few modifications to the user interface and some of the contents to make it better suited and more relevant for foreign investors.FISIS is capable of generating wide-ranging information and financial statistics on financial institutions, including general profiles, summary income statements and balance sheets, and key business indicators such as profitability, liquidity, and productivity in charts and other user-tailored formats.The new system is expected to become fully operational and open to the public after test runs in July.* Please refer to the attached PDF for details.
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Jun 01, 2005

Preliminary BIS Capital Adequacy Ratio of Domestic Banks As of the End of March 2005

Preliminary figures compiled by the FSS show that as of the end of March this year, the BIS capital adequacy ratio averaged 12.05%, 0.03 percentage points down from 12.08% at the end of 2004 but 0.56 percentage points up from a year earlier.With domestic banks posting a net income of KRW2.8 trillion in the first quarter of 2005, Tier-1 capital increased by KRW3.7 trillion, but a 1.3% increase in risk-weighted assets coupled with a KRW2.8 trillion reduction in Tier-2 capital pushed the ratio slightly lower. Domestic banks, however, continue to have a good capital base: they achieved a qualitative improvement in their capital base with the Tier-1 capital ratio rising by 0.34 percentage points from a year earlier.With the ratios of Chohung Bank and Korea Exchange Bank rising steadily, it is forecast that all BIS capital adequacy ratios of domestic banks will be higher than 10% at the end of this year.* Please refer to the attached PDF for details.
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May 27, 2005

FSC Action on Leading Investment & Securities’ Applications for Share Acquisition and Merger with Bridge Securities

The Financial Supervisory Commission announced on May 27 that it had decided not to give regulatory approval to the applications by Leading Investment Securities Co., Ltd. to acquire shares of Bridge Securities Co., Ltd. and merge with the company.Leading Investment Securities Co., Ltd. stated in the business plan it submitted to the FSC that it envisioned a sharp turnaround after the proposed merger with Bridge Securities (cumulative three-year net income totaling KRW33.9 billion following the merger). Leading Investment Securities also anticipated securities underwriting and investment banking as its key revenue sources.The FSC noted that the two companies incurred large net cumulative losses totaling KRW58.4 billion between April 2002 and December 2004 from mostly engaging in securities brokerage and dealings. The FSC further noted that the amount of financing put forth by Leading Investment Securities to complete the merger (KRW149.4 billion), including share purchases, restructuring expenses, and share buybacks, can be covered only by disposing of nearly all of the liquid assets of the merged company (KRW156.1 billion). Because the merged company would then be left only with illiquid assets such as unlisted shares and physical assets, it is unrealistic to expect the company to engage in normal securities dealings and underwriting activities, both of which typically require substantial financial resources.Furthermore, the recent increase in share buyback price Leading Investment Securities proposed for the shareholders of Bridge Securities as well as other merger expenses raise serious doubts about post-merger liquidity positions of the company. It was also determined that revenue outlook for the company was uncertain given the planned downsizing of branch operations and underwriting business and a lack of experience in and specific business strategies for investment banking.After taking into consideration the asset structure, the underlying business strength an
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May 10, 2005

Domestic Banks Report Net Income Totaling KRW2.76 Trillion For the First Quarter of 2005

Preliminary figures show that domestic banks’ net income for the first quarter of 2005 totaled KRW2.76 trillion, up KRW1.05 trillion or 61.2% from KRW1.71 trillion a year earlier. Income before provisioning for loan losses (including nonoperating income) totaled KRW4.62 trillion, which is KRW616.0 billion or 11.8% less than KRW5.24 trillion a year earlier, indicating most of the gains resulted from lower provisioning in the quarter.Interest income for the first quarter totaled KRW6.30 trillion, down KRW330.5 billion or about 5% from KRW6.63 trillion a year earlier, on falling interest margins amid increasing competition in the banking sector. As a result of drop in fee income and securities trading income, non-interest income fell by KRW250.4 billion or 16.2% in the quarter.* Please refer to the attached PDF for details.
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Apr 25, 2005

New Amendments to Regulation on Supervision of Securities Business to Ease Securities Trading Rules for Foreign Investors

The FSC/FSS adopted amendments to Regulation on Supervision of Securities Business on April 22 that will ease rules on bulk transactions and allow the use of “special nominee accounts” for foreign investors. The following is a summary of the newly amended regulation.Use of special nominee accounts for foreign investorsThe FSC/FSS adopted the use of “umbrella accounts” for foreign investors in January 2002 that allows a group of registered foreign investors run by the same entity (foreign investor group) to execute securities trading on a bulk transaction basis under a single designated investor account and distribute the executed trades individually. Under the amended regulation, securities companies may open and manage special nominee accounts to execute aggregated trading orders from foreign investor groups on a bulk transaction basis and distribute them individually. Thus, foreign investor groups may now utilize both umbrella accounts and special nominee accounts to meet their trading needs.More specific provisions on distribution of bulk transactionsThe amended regulation specifically provides that securities companies may distribute a bulk transaction executed to the individual accounts of a foreign investor group at a price which is determined using methods (e.g., a volume weighted average price) agreed in advance.Simplified reporting for foreign investor groupsThe amended regulation removes provisions that required foreign investor groups to file a report with the FSC/FSS before acting collectively as an investor group. Under the amendments, foreign investor groups only need to inform securities companies of the individual investors of the group before trading collectively.Expanded OTC securities trading for foreign investorsForeign investors may now engage in OTC (outside the stock exchange) securities trading under open, competitive bidding in Korea as well as OTC acquisition of securities with warrants.New safeguards on distribution of securities c
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Apr 07, 2005

Correction to April 3 Yonhap News Article

1. Summary of Yonhap News ArticleThis regards April 3 Yonhap News article “Financial Supervisory Authority, putting a brake on outflows of capital in the form of high dividend payments”. The following is a summary of the article;[The financial supervisory authority is preferentially reviewing plans to tighten the requirement for ‘appropriated retained earnings for financial structure improvement’ which is currently stipulated in the FSC regulations in an attempt to reduce dividends payable and hence to prevent high dividend payments to shareholders]2. Correction to the articleThe Financial Supervisory Commission hereby issues a correction to April 3 Yonhap News article entitled “Financial Supervisory Authority, putting a brake on outflows of capital in the form of high dividend payments”. The FSC has not undertaken any review on plans to tighten the requirement for ‘appropriated retained earnings for financial structure improvement’ in the FSC regulations and would like to take this opportunity to inform that the Yonhap News article is not based on facts.* Please refer to the attached PDF for details.
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Apr 01, 2005

Correction to March 31 Financial Times Article "Seoul's new rules anger overseas investors" by Anna Fifield

The FSC/FSS and the Ministry of Finance and Economy hereby issue a correction to March 31 Financial Times article entitled “Seoul’s new rules anger overseas investors.” The article misinterprets the recently amended “5% rule,” labeling it a “draconian” requirement and a move designed to tighten controls on foreign investors. In particular, the article stretches the 5% rule to suggest that it was connected to the equity investment in SK Corp. by Sovereign Asset Management and the gains recently achieved by Newbridge Capital after selling its stakes in Korea First Bank.The 5% rule was first established with an amendment to the Securities and Exchange Act in 1991. The newly amended 5% rule was passed by the National Assembly on December 31, 2004, promulgated on January 17, 2005, and took effect on March 29, 2005.It is important to note that the 5% rule is widely adopted and enforced in many countries—particularly stringently in the U.S.—and Korea’s 5% rule is modest with respect to the kinds of disclosure compliance it requires from investors. Thus, the assertion made in the FT article that Korea’s 5% rule is “draconian” is a hyperbole and a mischaracterization that can only be expected from uninformed or misinformed observers.Moreover, as the FSC/FSS has pointed out on numerous occasions, the changes adopted to the 5% rule were intended only to replace broadly worded provisions with more specific and unequivocal rules. It was never intended to control the “pernicious” effects of foreign capital as the article falsely asserted.The FSC/FSS and the Ministry of Finance and Economy further note that the amended 5% rule is part of the ongoing effort to raise Korea’s corporate governance to the highest global standards. It is not related in any way to particular foreign investors and is applied equally and fairly to all investors, domestic and foreign. It is certainly not intended to tighten controls on foreign investors.The FSC/FSS and the Mi
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Mar 15, 2005

Correction to March 15 Dow Jones Newswires Article Entitled “S. Korea FSC Chmn: Asia Can’t Keep Financing US Debt”

The FSC/FSS hereby issues a correction to an online Dow Jones Newswires article entitled “S. Korea FSC Chmn: Asia Can’t Keep Financing US Debt” by James Simms. Chairman Yoon did not say “Asia can’t keep financing US debt” as the title of the Dow Jones newswires article stated and suggested. Chairman Yoon merely noted, in a reference to various regional issues that call for close cooperation among the region’s supervisory authorities, that the trade imbalance between Asia and the U.S. could potentially pose a risk to the global financial system. The speech by Chairman Yoon was strictly confined to a need for close cooperation among the region’s supervisory authorities.* Please refer to the attached PDF for details.
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Mar 10, 2005

BIS Capital Adequacy Ratio of Domestic Banks Averages 12.09% at the End of 2004

Preliminary figures show that the BIS capital adequacy ratio of domestic banks at the end of 2004 averaged 12.09%, up from 11.16% a year earlier and the highest ratio ever. The capital adequacy ratio rose for 12 banks and fell for 7 banks for the year.Risk-weighted assets rose 4.2% during 2004, but the increase was easily offset by a 12.9% jump in bank capital on the back of KRW8.8 trillion in net income for the year and capital increases by the government in Korea Development Bank. The quality of bank capital also showed much improvement in 2004 with Tier-1 capital rising KRW9.5 trillion compared with an increase of KRW300 billion for Tier-2 capital.With a KRW37.8 billion drop in Tier- 2 capital, the six regional banks saw their average BIS capital adequacy ratio fall slightly in 2004 to 11.02% from 11.13% a year earlier. The drop, however, does not appear to warrant any particular concern as the regional banks maintained an overall ratio above 11% and thus did not need to issue high-yield subordinated bonds for Tier-2 capital.* Please refer to the attached PDF for details.
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Feb 17, 2005

The FSS Issues Guidance on Reporting Requirements under the Amended “5% Rule” Set to Take Effect in March

The FSS issued the following guidance on the reporting requirements under the amended “5% rule” set to take effect on March 29 to help investors and companies avoid unnecessary confusion and ensure full compliance with new reporting regimes. Currently, the 5% rule requires an investor who acquires 5% or more of a publicly traded company’s total outstanding shares or changes his share ownership by 1% or more thereafter to disclose it within five days from the date of the transaction.Re-filing of disclosures for investors subject to the 5% ruleUnder the amended provisions, an investor who previously filed a disclosure under the 5% rule with “Exercising Influence on the Management” of the investee company as the intended purpose of the investment must re-file a disclosure on the share ownership and the intended investment purpose within five days after the new reporting requirements take effect on March 29. That is, an investor who holds 5% or more of the company’s shares with Exercising Influence on the Management as the intended investment purpose as of the effective date must file a new disclosure using a new reporting format between March 29 and April 2 even if one were filed prior to March 29 and no change in share ownership had occurred since. Thus, the new reporting rule is applicable to both investors who previously stated Exercising Influence on the Management as the investment purpose as well as investors who changed the investment purpose to Exercising Influence on the Management after a previous filing. Investors who disclosed the investment purpose as “Investment Only” are excluded from the new reporting requirements.Five-day “cooling-off period” after reporting Exercising Influence on the Management as the intended investment purposeThe amended provisions pertaining to the 5% rule also mandate a five-day “cooling-off period” during which investors who declared Exercising Influence on the Management as the investment purpose are bar
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Feb 03, 2005

Correction to Feb.2 Korea Times Article on FSS Investigation of Hermes Investment Management

The Financial Supervisory Service hereby issues a correction to an article concerning Hermes Investment Management that appeared on Korea Times on February 2. The Financial Supervisory Service is currently investigating the trading of shares of Samsung Corporation by Hermes Investment Management and the trading of shares of LG Card by Warburg Pincus for possible unfair trading. The investigations are ongoing, and no decision has been made about what actions the Financial Supervisory Service will take.* Please refer to the attached PDF for details.
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Feb 02, 2005

Bank Loans Classified as Substandard or Below Fall in 2004

Preliminary figures compiled by the FSS show that bank loans classified as substandard or below (SBLs)—substandard, doubtful, or presumed loss—totaled KRW13.9 trillion at the end of 2004, down KRW4.8 trillion from KRW18.7 trillion a year earlier. The ratio of SBLs to the total outstanding loans dropped to 1.90% from 2.63% a year earlier.A breakdown of the SBLs shows that SBLs from business loans totaled KRW8.3 trillion (1.92%), compared with KRW4.3 trillion (1.57%) from household loans and KRW1.3 trillion (5.16%) from credit card assets.Domestic banks resolved or cleaned up SBLs totaling KRW31.1 trillion during 2004. They included loan write-offs totaling KRW12.8 trillion, reclassified SBLs totaling KRW6.6 trillion, and loan collections including disposition of borrower collateral totaling KRW5.7 trillion. New SBLs during 2004 totaled KRW26.2 trillion, compared with KRW35.3 trillion during 2003.As of the end of 2004, none of the domestic banks had an SBL ratio above 3% (Jeju Bank’s 2.82% was the highest). The SBL ratios for 15 banks fell while those for four banks slightly rose in 2004 (see the attached table for a complete list of the banks and their ratios for 2004).* Please refer to the attached PDF for details.
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