Financial stability is a prerequisite to innovation and inclusive finance policies. FSC maintains close market monitoring for any signs of market volatility and works to ensure stability in the financial markets. There are risk factors originating from abroad and from within. FSC focuses on making our economy more resilient from external shocks, such as a disruption in the global supply chain, and supporting Korea’s material, component and equipment industries to help boost their global competitiveness. Internally, FSC is closely monitoring the trends in household debt and seeking reforms to corporate restructuring in order to prevent domestic risk factors from turning into systemic risks. Policies aimed at increasing financial stability also include enhancing fairness in the financial markets by introducing a comprehensive legal framework for the supervision of financial conglomerates, improving market discipline and promoting transparency in corporate disclosure and accounting practices.
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Oct 29, 2026
- FSC Proposes Rules Change to Facilitate Prompt Resolution of Distressed Financial Companies
- The Financial Services Commission introduced plans to facilitate a prompt resolution process for insolvent (or distressed) financial companies on October 29 through proposed rules changes to the Act on the Structural Improvement of the Financial Industry and the Depositor Protection Act. Key Revision Details The prompt resolution process for insolvent (or distressed) financial companies is aimed at preventing risk contagion and systemic risk in the financial industry and establishing safeguards to ensure sufficient protection of rights for relevant shareholders and creditors. a) Scope of application The types of financial institutions that will be subject to the prompt resolution process will be limited to those that are eligible to be covered by deposit protection insurance, which include banks (excluding Nonghyup Bank and Suhyup Bank), insurance businesses (excluding reinsurance), securities firms, savings banks, and financial holding companies. The financial companies that are not eligible to be covered by deposit protection insurance, such as specialized credit finance businesses, certain groups of asset management companies, and trust businesses, are not subject to the prompt resolution process because they are less prone to the risk of a potential bank run as they have no bank-like deposit-taking function and often manage investor funds through third-party custodians. For Nonghyup Bank and Suhyup Bank and mutual finance businesses that are supervised separately under different laws and have their own resolution proceedings, authorities will examine the applicability of the prompt resolution process on a medium- to long-term. b) Instigating conditions To initiate a prompt resolution process, a specific set of instigating conditions should be met. First, the financial institution in question should be insolvent or distressed (at risk of becoming insolvent). Second, it should be deemed highly likely that the insolvency at the financial institution poses a threat
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Oct 26, 2026
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Oct 14, 2026
- Authorities Hold Meeting on Cybersecurity Management in Financial Sector to Bolster Anti-Hacking Measures
- The Financial Services Commission held a meeting on cybersecurity management in the financial sector with officials from related organizations on October 14. In the wake of recent hacking incidents in the financial sector, financial authorities have taken steps to immediately dispatch officials for investigation, notify affected customers about consumer protection measures available for them, and distributed the IP addresses linked to the hacking attacks as well as a self-evaluation checklist to all financial companies. At todays meeting, authorities went over the result of checklist evaluation and discussed measures to bolster cybersecurity management to prevent data breaches in the financial sector. Overview At the time of this meeting, 16 companies in total have been confirmed to have experienced data breach incidents recently across all financial sectors.The extent of data breaches is estimated to be about 100,000 pieces of customer data (names, contact information, resident registration numbers, email addresses, etc.). Thus far, there have been no reported hacking incidents involving data breaches of account passwords or credit card numbers that would particularly raise the alarm about the potential of fraudulent transactions. Authorities have instructed the affected financial companies to immediately block the IP addresses linked to the hacking attacks, employ additional measures (security patches, suspension of services, etc.) to prevent further breaches, and take all necessary steps to ensure consumer protection. In the meantime, through on-site reviews, the Financial Supervisory Service (FSS) and the Financial Security Institute (FSI) are currently looking closely into individual incidents to find out attack vectors or surface and patterns of cyberattacks to see whether individual incidents are associated with one another, whether these attacks originated from the same attacker, and whether artificial intelligence (AI) has been used in these hacking inciden
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Oct 06, 2026
- FSC-FSS Issue Consumer Alert over Potential Phishing Scams Following Data Breaches in Financial Sector
- The Financial Services Commission and the Financial Supervisory Service issued a consumer alert (Level I: Caution)on October 6, urging financial consumers to practice caution over potential phishing attacks and loan scams following recent personal information breaches in the financial sector. In addition, the FSC and the FSS are operating a special response period for one month starting from today to make all-out efforts to prevent subsequent damages, such as phishing attacks and loan scams, involving leaked data. In this regard, the financial authorities have convened a meeting with financial companies on October 6 and instructed them to take the following measures. a) Operation of help desks During the special response period, financial companies should set up and operate help desks to provide active assistance to affected consumers and guide them through preventive steps. If they come across a suspected phishing scam, financial companies should immediately report to the authorities and quickly share relevant information with other financial companies to prevent further spread of damages. b) Enhanced FDS monitoring Financial companies are instructed to strengthen their monitoring of suspicious transactions activities involving stolen consumer data through their own fraud detection system (FDS). As such, financial companies will more closely review online loan applications, new accounting opening, and large-amount transfer of money involving stolen consumer data and require additional ID verification steps if needed. c) Joint response through ASAP Financial companies are instructed to make active use of the AI-based anti-phishing Sharing Analysis Platform (ASAP) to quickly share phishing-related information with other entities and effectively cut off suspicious transactions and further damages. d) Consumer remedies and compensations Financial companies are instructed to continue to closely monitor the extent of damage regarding personal information breaches and mak
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Sep 03, 2026
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Aug 12, 2026
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Aug 11, 2026
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Aug 04, 2026
- Anti-Vishing Information Sharing via ASAP Available for Financial, Telecom and Investigation Data
- The Financial Services Commission announced that the recently revised rules under the Special Act on the Prevention of Loss Caused by Telecommunications-based Financial Fraud and Refund for Loss (the Act hereinafter) and its Enforcement Decree will take effect from August 4, 2026. With the revised rules in place, financial companies, telecom service providers, and investigation authorities will be able to more easily and quickly share voice phishing (vishing)-related information to more effectively cut off criminal activities. With the introduction of the AI-based Anti-Phishing Sharing and Analysis Platform (ASAP) in October last year, the sharing of information among relevant authorities and organizations has been made easier. However, the ASAP was operating mostly with the information provided by banks and there were limits in terms of legal foundation and the scope of participation. In this regard, the government prepared a revision bill for the Act to provide a legal foundation for allowing the sharing of financial, telecom, and investigation data through ASAP and the revised Act passed the National Assembly on January 15, 2026. Since then, the FSC prepared a revision bill for the Enforcement Decree and subordinate statutes to provide details regarding the scope of participating entities and the types of information being shared, and the procedures for selecting an ASAP operator (information sharing and analysis agency). Key Details Expanding the scope of participation and types of information Under the revised rules, financial companies, telecom service providers, and investigation agencies that provide suspicious data linked to vishing scams will be allowed to provide relevant data to the information sharing and analysis agency (ASAP operator) without the need to obtain consent from the data subject. The scope of information providing entities will include financial companies, electronic telecom service providers, investigation authorities, the Financial Super
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Jul 24, 2026
- FSC Announces Early Implementation of Strengthened Deposit Requirement for Single-Stock Leveraged Products
- The Financial Services Commission announced a plan to move up the implementation of the strengthened minimum deposit requirement for investing in single-stock leveraged products (exchange-traded funds and exchange-traded notes) on July 24. The earlier planned implementation schedule from August this year will move up to July 31 to quickly help to stabilize demand. On July 16, the FSC and related authorities introduced a set of measures intended to strengthen the management of single-stock leveraged products to help to stabilize demand and protect investors. After the announcement of the measures, the measures to prohibit new listings of single-stock leveraged products and ban financial investment businesses from engaging in advertising and marketing activities went into effect immediately from July 16. Since then, the financial authorities have worked closely with financial investment businesses to quickly implement the measures and have prepared a plan to move up the implementation schedule. Early Implementation of Strengthened Deposit Requirements (1) Moving up implementation schedule to July 31 The earlier planned implementation schedule for the strengthening of the minimum deposit requirement from August this year will move up to July 31 to quickly help to stabilize demand. Currently, retail investors are required to deposit at least KRW10 million to make new investment in single-stock leveraged products (for both domestically listed and overseas listed). However, when calculating the minimum deposit amount, 70 percent of market values of substitute securities, such as stocks, ETFs (excluding leveraged ETFs), and bonds on the investors account was counted toward the deposit amount along with cash. Moreover, after three months of trading, securities firms would ordinarily have more leeway in lowering or strengthening the minimum deposit requirement for investors after taking into account the trading experience of investors. To improve upon this and to make sure t
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Jul 16, 2026
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Jul 15, 2026
- FSC Approves Recovery and Resolution Plans for D-SIFIs
- The Financial Services Commission announced on July 15 that it has approved the recovery plans prepared by ten domestic systematically important financial institutions (D-SIFIs) selected for 2026 and their resolution plans drawn up by the Korea Deposit Insurance Corporation (KDIC) as recommended by the Financial Stability Board (FSB). The recovery and resolution mechanisms were adopted through a revision to the Act on the Structural Improvement of the Financial Industry (the Act hereinafter) in December 2020 and have been in place since 2022 requiring FSCs approval every year. The FSC found that the recovery and resolution plans for ten D-SIFIs selected for 2026Shinhan, KB, KEB Hana, Woori, and NongHyup financial holding companies and their banksmostly meet international standards and those prescribed under the Act. Certain factors that came across as requiring improvement in the resolution process, especially in the areas of cybersecurity and digital bank run, have been notified to D-SIFIs and the KDIC. Compared to the previous year, the recovery and resolution plans approved by the FSC this year carry tools and mechanisms enabling large financial companies to more actively prepare and respond to risk situations in advance, while allowing the resolution authority to more swiftly carry out resolution proceedings, thereby helping to ensure stability and resilience in the financial system in a more effective manner. The recovery and resolution plans are operated on a yearly basis, and the authorities plan to review and approve the recovery and resolution plans for D-SIFIs selected for 2027 in the future. In the second half of this year, relevant authorities and D-SIFIs plan to hold a joint exercise to examine and bolster their risk response capabilities. * Please refer to the attached PDF for details.
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Jul 15, 2026
- FSC Announces Designation of Eight Non-holding Financial Groups for 2026
- The Financial Services Commission held the 13th regular meeting on July 15 and designated eight non-holding financial groups for 2026 pursuant to the Act on the Supervision of Financial Conglomerates (the Act hereinafter). The designated entities are Samsung, Hanwha, Mirae Asset, Kyobo, Hyundai Motor, DB, Daou Kiwoom, and Toss groups. Toss is newly added to the list of non-holding financial groups this year as the first among big tech companies. The designation and supervisory mechanism on non-holding financial groups aims to effectively oversee and manage risk contagion or concentration in financial groups. With the implementation of the Act from June 2021, the FSC has been designating non-holding financial groups every year. The eight selected entities for this year satisfied all designation criteria under the Act. The selected entities will be subject to the following rules. a) Select a financial business entity representing the entire group after considering the investment relationship, total size of asset, capital, and so on, and report their selection to the Financial Supervisory Service. b) Periodically inspect and evaluate group-wide risks and prepare and follow their own internal control and risk management policy, and transparently disclose material information needed to ensure consumer protection and report to the authorities. c) Draw up capital adequacy ratio reflecting risk-weighted capital based on the risk assessment conducted by the financial authorities. d) The financial authorities will carry out a periodic assessment (every three years) on the risk and risk management status of non-holding financial groups. It is expected that the designation of non-holding financial groups for this year will help these companies to more effectively monitor and manage group-wide risks on their own and help strengthen supervision over big tech financial groups. * Please refer to the attached PDF for details.
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Jul 06, 2026
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Jun 10, 2026
- FSC Chairman Holds Meeting with Financial Holding Companies to Discuss Ways to Bolster Cyber Defense Capacity in AX
- Chairman Lee Eog-weon of the Financial Services Commission held a meeting with the CEOs of five major financial holding companieson June 10 and discussed ways to effectively respond to cybersecurity threats and voice phishing (vishing) attacks in an era of AI transformation (AX). At the meeting, Chairman Lee and the heads of financial holding companies discussed the risk of cybersecurity threats posed by frontier AI and deepfake vishing scams and ways to effectively respond to these newly emerging digital threats to help propel AI transformation in the financial industry. In his opening remarks, Chairman Lee talked about both challenges and opportunities presented by AI transformation and pointed out major threats posed by frontier AI models, such as Claude Mythos, as well as deepfake vishing scams that take advantage of AI technology. In this regard, Chairman Lee said that the government has put in place diverse measures and policies intended to bolster the AI-driven defense capabilities against AI attacks. For instance, the network separation rule will be eased for financial companies for their AI cyber defense purposes, and the utility of the AI-based anti-phishing sharing analysis platform (ASAP) has been ramped up to more effectively detect and prevent newly emerging types of phishing attacks. Moreover, Chairman Lee said that the government is planning to quickly introduce the strict liability rule in the financial sector to make financial companies more responsible and remedies more effective for victims. To strengthen the financial industrys response capacity against newly emerging digital threats in an era of AI transformation, Chairman Lee asked the financial holding companies to take the following steps. First, in response to cyber threats posed by frontier AI, financial holding companies are urged to actively participate in AI cybersecurity tests prepared by the government and take follow-up steps as deemed necessary. In preparation for the complete lifti
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May 25, 2026
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Apr 06, 2026
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Apr 01, 2026
- Government Unveils 2026 Household Debt Management Plan Aimed at Decoupling of Finance from Real Estate Market
- Chairman Lee Eog-weon of the Financial Services Commission presided over the meeting on household debt management on April 1 with officials from related government ministries, financial institutions, and industry groups. At the meeting, officials discussed and introduced the governments household debt management plan for 2026. In order to put an end to excessive concentration of money and inflows of leveraged investments in the real estate market, FSC Chairman Lee said that it is critical to push for an effective decoupling of finance from the real estate market. In this regard, Chairman Lee said that the household debt management measures being introduced today will help to foster the conditions in the financial industry to make a great transition toward productive finance. Overview With the governments consistent efforts to contain the pace of household debt growth in recent years, the household debt to GDP ratiohas continued to decline since after 2021, which demonstrates that a gradual deleveraging is taking place in the household sector. In particular, a set of enhanced household debt management measures introduced in 2025 have contributed to the continuation of a downward stabilization trend despite the presence of interest rate cuts and housing market overheating. However, Koreas household debt to GDP ratiostill remains high compared to other major economies, and there is continuing presence of factors driving the growth of mortgage loans. Therefore, it is necessary for the government to continue to maintain a firm stance on household debt management. Especially against the backdrop of growing uncertainties in the real economy and financial markets, it is necessary to effectively address the potential risk of built-up leverage in the household sector. Key Measures a) Strengthening control over total volume of household debt growth In 2026, the government will continue to strictly manage the total volume of household debt growth in quantitative terms. The targ
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Mar 30, 2026
- Rules Change Proposed on VASPs to Strengthen Registration and Anti-money Laundering Requirements
- The Financial Services Commission proposed a set of rules change intended to strengthen the registration requirement and the anti-money laundering (AML) duty of virtual asset service providers (VASPs) on March 30. The revision proposal for the Enforcement Decree of the Act on Reporting and Using Specified Financial Transaction Information and its subordinate regulations address details regarding the entry rules of VASPs and the notification of sanctions imposed on retired employees. Moreover, the proposed rules change also deal with the strengthened AML duty (travel rule) of VASPs in their handling of virtual asset transfers. Key Revision Details a) Enhanced entry rules and registration requirements First, the scope of major shareholders falling under the scrutiny for VASPs entry registration will be expanded to include largest shareholder, CEO, controlling shareholder, and the CEO and company representative if the largest shareholder is a corporate entity. Second, VASPs need to meet the following financial soundness and social credibility requirements for registration. VASPs (a) should maintain a debt ratio of 200 percent or below as shown in the most recent quarter-end financial statements, (b) should not have been in default in the past three years, and (c) should not have been identified as an insolvent financial institution or have had its business license revoked in the past. The (chief) executive officers of VASPs need to meet specific qualifications prescribed under the Act on Corporate Governance of Financial Companies. The largest shareholders of VASPs (a) should demonstrate a debt ratio of 200 percent or below as shown in the most recent quarter-end financial statements, (b) should not have been a largest shareholder or a specially associated entity to an insolvent financial institution or a financial institution that has had its business license revoked previously, and (c) should meet specific qualifications prescribed under the Act on Corporate Governan
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Mar 30, 2026
- FSC Unveils Benchmark Rate Reform Plans to Ensure Consistent and Swift Transitions
- The Financial Services Commission announced benchmark rate reform plans intended to boost confidence in financial markets at the meeting held on March 30 with officials from related financial authorities and industry groups. FSC Vice Chairman Kwon Dae-young presided over the meeting and laid out the following three key principles for benchmark rate reform(a) swiftly improving confidence on benchmark rates, (b) minimizing potential impact on the market, and (c) strengthening protections for financial consumers. Key Details of Benchmark Rate Reform a) Promoting KOFR-basedtransactions in financial markets With the establishment of a central clearing system for KOFR-based overnight index swap (OIS) transactions, the government plans to speed up the adoption of KOFR in the market more quickly than previously planned. To this end, the previously planned KOFR-OIS target of 50 percent by June 2030 (via 10%p increase every year for five years) will be increased to 70 percent by June 2030 (via 15%p increase every year). For the period running from July 2026 until June 2027 (the second year), financial companies will need to meet the KOFR-OIS target of 25 percent (10% in the first year plus 15%p). There will be a new KOFR-FRN (Floating Rate Note) transactions target established (via administrative guidance from the Financial Supervisory Service in June 2026) to promote the adoption of KOFR in the FRN market. In the first year (from July 2026 to June 2027), banks will need to meet the KOFR-FRN target of 10 percent and increase their KOFR-FRN transactions every year by 10%p thereafter to meet the target of 50 percent by June 2031. For policy financial institutions (Korea Development Bank, Industrial Bank of Korea, and Export-Import Bank of Korea), the KOFR-FRN target will be set at 65 percent by June 2031, a 15%p higher than commercial banks. To meet this goal, in the first year (from July 2026 to June 2027), policy financial institutions will issue 25 percent or more of FRNs ba
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Mar 30, 2026
- Capital Market Rules Change Proposed to Strengthen Regulations on Disclosure of Treasury Share Holding Status
- The Financial Services Commission proposed capital market rules change on March 30 intended to promote the use of treasury shares by listed companies as a means to boost shareholder value in line with the mandatory cancellation of treasury shares promulgated under the recently revised Commercial Act. Under the revised Commercial Act, listed companies are required to cancel treasury shares within one year in principle (within one year and six months for treasury shares acquired prior to the revised law taking effect). For exceptional cases when the retention of treasury shares is deemed to be necessary for employee compensation or other management purposes, listed companies are required to obtain an approval for their retention/disposal plan from the general shareholders meeting. In this regard, the FSC proposes the following rules change to make sure a seamless implementation of the mandatory treasury cancellation requirement under the revised Commercial Act. First, all listed companies will be required to disclose their treasury stock retention status and disposal plans. Second, there will be regulatory reforms regarding the disposal of treasury shares by trust businesses, the issuance of exchangeable bonds backed by treasury shares, and the sale of treasury shares. First, the rules change is proposed to enhance transparency in the disclosure of listed companies treasury share retention and disposal plans and their actual implementation status, and to expand the application of the treasury share disclosure rule to all listed companies. Under the revised Commercial Act, companies are required to indicate in their treasury share retention and disposal plans the purpose of retention and/or disposal, retention status, retention period, and time for disposal. However, if a specific time for disposal is yet to be decided at the time of shareholders approval, it remains difficult for investors and ordinary shareholders to clearly understand the companys treasury share dis
