Korea’s financial supervisory structure underwent major changes following the Asian financial crisis in 1997. To ensure effective and efficient supervision of all financial sectors, the Financial Supervisory Commission was established in April 2008 as an integrated supervisory agency with consolidating financial supervisory authorities across all financial sectors.
The Financial Supervisory Commission was reorganized into the current Financial Services Commission (FSC) on February 29, 2008 with the integration of the Financial Policy Bureau of the former Ministry of Finance and Economy. The FSC thus has the statutory authority to draft and amend financial laws and regulations and issue regulatory licenses to financial institutions.
In addition, the FSC oversees cross-border matters such as supervising foreign exchange transactions conducted by financial institutions to ensure their financial soundness. Korea Financial Intelligence Unit (KoFIU), which was also integrated into the FSC as part of the reorganization, leads the government’s anti-money laundering and counter-terrorism financial efforts.
The FSC contributes to the development and growth of the economy by advancing the financial industry, preserving financial market stability, enforcing fair market practices, and protecting financial consumers.
The FSC is responsible for formulating financial policies, supervising financial institutions and financial markets, protecting consumers, and advancing Korea’s financial industry.
- Develop financial policies that support economic growth
- Promote financial market stability with macro & micro policy tools
- Improve the efficiency and resilience of financial markets
- Supervise financial institutions and oversee financial markets
- License financial service providers
- Investigate unlawful market conduct
- Protect the rights of consumers in financial transactions
- Mediate and resolve consumer complaints
- Provide consumer and investor financial education programs
- Enhance competitiveness of the financial industry
- Promote Korea as a global financial center
- Support domestic financial institutions in globalizing business operations