Vice Chairman Kim Soyoung of the Financial Services Commission traveled to Cambodia and the Philippines between March 3 and 7 in an effort to promote financial cooperation with these countries and support overseas expansion of K-Finance.

Visit to Phnom Penh, Cambodia

Visit to National Bank of Cambodia

On March 4, Vice Chairman Kim visited the National Bank of Cambodia (NBC) and met with Deputy Governor Yim Leat. Vice Chairman Kim also congratulated the signing of a memorandum of understanding (MOU) between the Korea Asset Management Corporation (KAMCO) and the NBC and showed a commitment to enhancing financial cooperation in the areas of banking regulation and strengthening the capacity for supervision.

During the high-level meeting held between the two countries, the NBC requested sharing of policy experience and know-hows from the KAMCO and the Korea Deposit Insurance Corporation (KDIC) in the areas of resolution of non-performing loans (NPLs) and deposit protection scheme. In response, Vice Chairman Kim said that Korea will strengthen policy support to enhance financial cooperation between the two countries by holding an annual international financial cooperation forum (organized by The Council on International Financial Cooperation) in Cambodia next year. In addition, Vice Chairman Kim also asked for cooperation and support from the NBC regarding the complex and time-consuming nature of NPL recovery process in Cambodia, the problem that has been consistently raised by the Korean financial companies operating in Cambodia.

After the high-level meeting, an MOU was signed between the KAMCO and the NBC aimed at enhancing cooperation in the area of the resolution of NPLs through sharing of experience and know-hows. In this regard, Vice Chairman Kim spoke about the importance of promptly establishing effective measures to facilitate the resolution of NPLs in Cambodia, which have been growing rapidly in the banking sector amid a slowdown in the property sector. With this MOU signed, Vice Chairman Kim said that Korea’s experience and know-hows are expected to help contribute to ensuring stability in Cambodia’s financial system.

Meeting with Korean Financial Companies Operating in Cambodia

Vice Chairman Kim held a meeting with officials from the Korean financial companies that have local branches in Cambodia and had discussions on local industry trends, each company’s business operating status, and their challenges and suggestions. At the meeting, participants raised the issue of complex and time-consuming nature of NPL recovery process and decision-making process by local financial authorities.

Vice Chairman Kim said that the FSC and related organizations will continue to provide active support to promote overseas expansion and growth of Korea’s financial industry. By jointly organizing an international financial cooperation forum next year, Vice Chairman Kim said that Korean financial authorities will continue to maintain close communication with Cambodian counterparts to help make improvements to local operating conditions for Korean financial companies doing business there.

Visit to Non-Bank Financial Services Authority

Vice Chairman Kim visited Cambodia’s Non-Bank Financial Services Authority (FSA) and met with Secretary General Ros Seilava (who also serves as Secretary of State of the Ministry of Economy and Finance).

At the meeting, the two sides exchanged views on the importance of developing regulatory and supervisory capacity amid the growth of nonbank financial sectors. Speaking about the plan to jointly organize an international financial cooperation forum in Cambodia next year, Vice Chairman Kim showed a commitment to boost cooperation and expand the sharing of knowledge across all financial sectors.

After the meeting, an MOU was signed between the Korea Insurance Development Institute and the Insurance Regulator of Cambodia to enhance cooperation in the area of insurance development. In his congratulatory remarks, Vice Chairman Kim said that the MOU will help to establish a mutually beneficial relationship between the two countries in the insurance sector through sharing of knowledge and consultation.

Visit to Manila, the Philippines

Visit to Asian Development Bank

On March 6, Vice Chairman Kim visited the Asian Development Bank (ADB) and met with ADB President Masato Kanda who assumed office on February 24 this year. At the meeting, the two sides exchanged opinions on ways to strengthen cooperation between the two organizations to promote financial development in Asia.

During the meeting, Vice Chairman Kim and President Kanda held talks on global economic and financial market conditions, falling currency values in the region, and the impact of rising protectionism, and reaffirmed a strong commitment to the strengthening of regional financial cooperation. In addition, the two sides agreed to continuously have discussions on ways to strengthen cooperation through various forms of knowledge sharing and capacity development programs (ADB’s Asia Finance Forum and CIFC’s International Financial Cooperation Forum).

Meeting with Deputy Governor of Central Bank of Philippines

Vice Chairman Kim met with Deputy Governor Chuchi G. Fonacier of the Banko Sentral ng Pilipinas (BSP), the central bank of the Philippines.

At the meeting, both sides exchanged opinions on the resolution of NPLs and deposit protection scheme amid the rise of NPLs and financial instability in the post-pandemic era. Similar to Korea’s plan to increase the maximum deposit insurance limit this year from the current level of KRW50 million to KRW100 million, the Philippines is set to increase the maximum deposit insurance coverage to PHP1 million from the current level of PHP500,000. In this regard, the two sides agreed to continuously have talks on the progress and outcome of policy implementation in the future.