Annual Work Plan - Financial Services Commission

Annual Work Plan

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Feb 20, 2014

2014 Work Plan

KEY POINTS- Establish a specialized IT security agency for the financial sector- Abolish financial regulations that hinder sound competition in financial markets- Develop new pension products tailored to various consumer needs- Establish a special agency to provide guarantee for the shipping industry- Stimulate PEF industry- Establish a technology credit bureau (TCB)- Conduct annual survey on public awareness of financial policyOVERVIEWThe FSC announced its financial policy direction for the year of 2014 in pursuit of Korea’s financial service industry more trustworthy and globally competitive.In 2013, the FSC achieved its policy goals such as protecting financially-marginalized individuals and laying a foundation for creative finance. A recent string of financial incidents, however, undermined public trust in the financial sector. It has become essential to restore the trust.‘Public trust’, ‘market confidence’ and ‘consumer satisfaction’ are three pillars under which the FSC will push forward its financial policy throughout this year. The FSC set three policy goals: (a) establish market discipline in financial markets; (b) secure stability in financial system; and (c) strengthen financial industry’s competitiveness.KEY CONTENTS1. ESTABLISH A SPECIALIZED IT SECURITY AGENCY FOR THE FINANCIAL SECTORA specialized IT security agency will be established to better protect financial consumers against rapidly evolving methods of financial fraud. Currently, IT security functions are carried out separately by the Financial Security Agency(FSA), the Korea Financial Telecommunication Clearing Institute(KFTC) and KOSCOM. Some functions will be transferred to the new agency to provide financial institutions with a total package of specialized IT security service.The new agency will serve as an integrated control for IT security, responsible for a whole process of monitoring, security alert, analysis and response in the event of IT security breach in all financial
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Apr 03, 2013

2013 Work Plan

The FSC set three missions for 2013 with nine specific policy tasks.Creative Finance1. Create a virtuous cycle of capital among entrepreneurs investors2. Reform policy finance system3. Promote the financial industry as the next growth driverFinancial Inclusion4. Manage household debt growth / Establish the "Happiness" fund5. Strengthen financial consumer protection6. Ensure safety of electronic financial transactionsSolid Financial System7. Facilitate corporate financing for businesses8. Improve corporate governance of financial institutions9. Abolish unfair financial practices* Please refer to the attached PDF for details.
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Jan 06, 2012

2012 Work Plan

FINANCIAL MARKET OUTLOOK FOR 2012 AND KOREA’S POLICY DIRECTIONAs Europe’s ongoing debt crisis is expected to threaten global economic growth and increase volatility in global financial markets next year, Korea is also likely to face an economic slowdown, which will deal a severe blow particularly to SMEs and low-income households.Under such circumstances, the FSC set three main financial policy goals with six key objectives for 2012 as follows:[Policy goal #1: Preparedness against crises]① Take preemptive actions to secure market stability② Make Korea’s financial system further advanced[Policy goal #2: Support for businesses]③ Create a financial services environment for the growth of start-up companies and SMEs④ Develop financial services for sustainable growth[Policy goal #3: Greater financial inclusion]⑤ Support expansion of microfinance programs for low-income households⑥ Promote social contribution of financial institutions and stronger protection for financial consumersKEY POLICY OBJECTIVES FOR 20121. Preemptive actions to secure market stability(1) Create an emergency response mechanism for prompt actions in the event of a financial crisis- The FSC will conduct thorough tests on foreign currency liquidity conditions of domestic banks and closely monitor foreign capital flows.- We will also review and supplement our action plans on a frequent basis to take prompt and bold actions for market stabilization in the event of a crisis.- The FSC-FSS joint emergency response team will be ready to take swift actions against any possible crisis.(2) Keep household debt growth to a manageable level and normalize bad PF loans Household debt- The FSC will curb household debt growth to a balanced pace with real economic growth.- In order to encourage banks to extend more fixed-rate and installment loans, we will help banks secure their long-term funding sources by facilitating their issuance of MBS or covered bonds.- By end-2016, banks will be required to in
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Dec 14, 2010

2011 Work Plan

The Financial Services Commission (FSC) has made a publicly open presentation of its policy objectives for 2011 to President Lee Myung-Bak on December 14 at the Blue House.FSC Chairman Chin Dong-Soo unveiled the FSC’s 2011 policy agenda and had in-depth discussion with financial companies for low-income households, the general public, experts, and government officials on how to improve the practical effectiveness of financial support for low-income households.Six Key Objectives for 2011I. Preemptive Actions against Market Risks1. Taking preemptive measures to address problems in household debts and PF loans- Properly manage the pace of household debt growth not to increase exceedingly and eliminate systemic vulnerabilities of household debts by extending loans at longer-term, fixed rates or allowing borrowers to pay off principal in installments.- Prevent PF loans from being insolvent by conducting a more thorough review of business feasibility and reforming construction companies’ practices that have been recklessly providing payment guarantees; and encourage banks to write off bad PF loans as early as possible.- Expand financial restructuring funds by creating a common account for deposit insurance jointly held by individual financial sectors; raising deposit insurance premiums (from 0.35% to 0.40% for savings banks); securing restructuring funds, and strengthening the supervision of the Korea Deposit Insurance Corporation (KDIC).2. Strengthening measures to respond to internal and external risks and conducting a year-round corporate restructuring program- The FSC will strengthen its monitoring of financial markets and measures to enhance Korea’s foreign exchange soundness and to prevent the tipping of capital liquidity into one market. We will also review our contingency plans to counter crises such as Europe’s fiscal crisis or geopolitical risks on the Korean Peninsula.- Continue to conduct a year-round corporate restructuring program led by a group of c
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Dec 16, 2009

2010 Work Plan

The Financial Services Commission, the Fair Trade Commission and the Ministry of Strategy and Finance have jointly made a publicly open presentation of their policy objectives for 2010 to the President, Myung-Bak Lee today at the Korea Chamber of Commerce and Industry.Following the presentations from the three agencies, an open discussion took place on two main issues; job creation through active investments and sufficient support for low-income households.The Chairman, Dong-Soo Chin unveiled the FSC’s 2010 financial policy agenda on revitalizing the economy and improving the competitiveness of Korea’s financial markets.Five Key ObjectivesI. Funding Economic RevitalizationSupply sufficient funds to companies through policy financial institutions and the capital markets and invigorate green finance while strengthening corporate structures through restructuring1. Supply sufficient funds to companies through policy financial institutions- Supply a total of 23 trillion wons for facility investment through the KDB (9.5tn); IBK (8.0tn); KFC (1.35tn); KoDIT and Kibo (3.7tn)- Supply a total of 94 trillion wons to the small and medium enterprises through the IBK (29.0tn); KDB (10.0tn); KFC (2.1tn); KoDIT (36.7tn); Kibo (15.9tn)*The Korea Development Bank (KDB); the Industrial Bank of Korea (IBK); the Korea Finance Corporation (KFC); the Korea Credit Guarantee Fund (KoDIT) and the Korea Technology Finance Corporation (Kibo).In principle, the maturity extensions which were planned to end at the end of the year will be extended throughout the first half of next year while the upgraded guarantee ratio of 95% will be downgraded gradually; 90% in January; and 85% in July 2010. Newly applied guarantees in 2010 will be guaranteed within the range between 50% to 85%, the pre-crisis level.The burden will be alleviated on joint guarantees when venture companies raise capital from institutional investors.2. Supply sufficient funds to companies through the capital markets- Establish
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