Press Releases - Financial Services Commission

Press Releases

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Sep 16, 2026

FSC Proposes Rule Changes under Revised FSCMA on Valuation Method in M&A Transactions

The Financial Services Commission (FSC) proposed amendments to the Enforcement Decree of the Financial Investment Services and Capital Markets Act (FSCMA) and the Regulation on Issuance and Disclosure of Securities to introduce fair-value pricing for MA transactions and strengthen related procedures under the revised FSCMA, which will take effect on December 9, 2026. The proposal will be open for public comments from September 16 to October 6, 2026. Background Under the revised FSCMA, when a listed company enters into a merger, a spin-off or split and merger, an acquisition or transfer of a significant business or asset, and a comprehensive share exchange or transfer (each, a Subject MA Transaction), it must calculate the transaction value based on a fair value calculated by comprehensively taking into account the share price, asset value, earnings value, etc. The revised FSCMA also requires the board of directors of a listed company to prepare and disclose the written opinion for the purpose and expected effect of a Subject MA Transaction, and the appropriateness of the merger price. The company must undergo an evaluation by an external appraiser regarding matters such as the value of a Subject MA Transaction, the appropriateness of conditions of the transaction. For MA transactions between affiliated companies, a listed company must disclose any conflicts of interest or specific relationships between its related parties (under Article 9(1) of the Monopoly Regulation and Fair Trade Act) and the counterparty to the affiliate MA transaction. Accordingly, the FSC plans to amend the relevant regulations under the revised FSCMA as follows: (i) remove the detailed calculation method prescribed in the Enforcement Decree for the Subject MA transaction value and the purchase price for dissenting shareholders appraisal rights (the Appraisal Rights); (ii) add items to be included in the boards opinion and external evaluations; and (iii) strengthen procedures for determining t
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Sep 15, 2026

Korea Premium Weeks 2026 to be Held from Sept 28 to Oct 16

Korea Premium Weeks 2026 will be held over three weeks, from September 28 to October 16, 2026. First held this year, Korea Premium Weeks 2026 is the largest capital markets IR event in Korea, jointly organized by the Financial Services Commission (FSC) and the Korea Exchange (KRX). A total of 42 organizations, including capital market-related institutions, financial investment firms and media outlets, along with 55 listed companies, will participate in the event. The event will be held annually and is expected to become a flagship IR event and global conference for Koreas capital markets. Under the slogan Gateway to Asias Most Dynamic Capital Market, the event will bring together domestic and international investors to discuss key issues facing Koreas capital markets and explore their future direction. The three-week program will consist of a Core Week in the first week and Sub Weeks in the second and third weeks, with approximately 25 events taking place throughout the period. ▪ Week 1: Core Week (September 28October 2) The first week will feature policy sessions on the capital and foreign exchange markets, as well as IR programs connecting Korean listed companies with leading global investors, including pension funds, investment banks and asset managers. ▪ Week 2: Sub Week (October 68) The second week will highlight growth companies, with a seminar on strengthening the competitiveness of the KOSDAQ market, IR programs for KOSDAQ- and KONEX-listed companies, and a seminar on revitalizing the venture capital exit market. ▪ Week 3: Sub Week (October 1216) The third week will feature a series of events organized by private-sector financial institutions, including domestic securities firms and asset management companies, as well as the global bond market forum For details on the event program and advance registration, please visit the official website for Korea Premium Weeks 2026: http://koreaweeks.com * Please refer to the attached PDF for details.
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Sep 09, 2026

Household Loans, August 2026

In August 2026, the outstanding balance of household loans across all financial sectors increased KRW2.6 trillion (preliminary), growing at a slower pace compared with the previous month (up KRW6.4 trillion). (By Type) Home-backed mortgage loans increased KRW4.3 trillion, which showed a slowing down from the previous month (up KRW3.6 trillion). Banks (up KRW3.5 trillion up KRW4.0 trillion) and nonbanks (up KRW0.1 trillion up KRW0.3 trillion) both saw the pace of growth accelerating. Other types of loans edged down KRW1.7 trillion, shifting back down from a growth of KRW2.8 trillion in the previous month with credit loans falling KRW0.5 trillion from an increase of KRW2.1 trillion a month ago. (By Sector) In August 2026, household loans in the banking sector went up KRW3.4 trillion, growing at a slower pace from the previous month (up KRW5.5 trillion). Banks own mortgage loans (up KRW2.5 trillion up KRW2.9 trillion) and policy-based mortgage loans (up KRW1.0 trillion up KRW1.1 trillion) both edged up at faster rates, while other types of loans shifted back down from the previous months growth (up KRW2.0 trillion down KRW0.6 trillion). The nonbanking sector saw household loans declining KRW0.8 trillion, turning back lower from a growth of KRW0.9 trillion in the previous month. Mutual finance businesses (down KRW0.6 trillion down KRW0.5 trillion) saw the pace of decline slowing down, while savings banks (up KRW0.5 trillion up KRW0.3 trillion) saw the pace of growth decelerating. Insurance businesses (up KRW0.7 trillion down KRW0.3 trillion) and specialized credit finance businesses (up KRW0.3 trillion down KRW0.3 trillion) saw household loans shifting back down from increases seen in the previous month. (Assessment) In August 2026, mortgage loans (up KRW3.6 trillion up KRW4.3 trillion) expanded at a faster pace from the previous month as the previously increased volume of housing transactions for new housing occupants in July and August appears to have pushed up the vo
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Sep 04, 2026

FSC Introduces Policy Roadmap on Digital Transformation and Tokenization of Securities Issuance and Circulation

The Financial Services Commission held the third private-public joint consultative body meeting on the tokenization of securities and introduced a policy roadmap on the digital transformation of securities issuance and circulation on September 4. Key Policy Directions a) Three-phase development of infrastructure for tokenized securities issuance A three-phase roadmap will be adopted for securities companies and the Korea Securities Depository (KSD) to develop relevant infrastructures facilitating the issuance of tokenized securities. In this regard, the tokenization of securities will include not just fractional investment securities but also conventional securities types, such as stocks, bonds, and funds. With an update to the Act on Electronic Registration of Stocks and Bonds (the Electronic Registration Act hereinafter) scheduled to take effect from February 4, 2027, security tokens (or tokenized securities) are legally recognized as a digitized form of securities. Thus, the first phase of the tokenization of securities will begin from February 2027. During the first phase, the tokenization of securities will be sought for (a) privately pooled money market funds (MMFs) and bonds exclusively reserved for institutional investors, (b) unlisted stocks through a trust structure, and (c) publicly offered fractional investment securities. In the second phase, the scope of tokenization will be opened up to all publicly offered securities types. Then in the final stage, authorities will ultimately seek to establish an on-chain payments infrastructure linked to stablecoins. The second and third phase implementation will remain rather flexible depending on the outcome of the first phase tokenization process, the pace of technological innovation adopted by market participants, and the pending legislation on stablecoin. b) Model standards on fractional investment Fractional investment can take the form of either non-monetary trust beneficiary certificates or investment contra
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Sep 03, 2026

Temporary Easing of Network Separation Rule Available for More Financial Companies for AI Cybersecurity Purpose

The Financial Services Commission held a meeting on frontier AI and cybersecurity strategy with officials from the Financial Supervisory Service and the Financial Security Institute on September 3. At the meeting, officials discussed specific measures for the second phase easing of the network separation rule for financial companies. For the second phase easing of the network separation rule, the eligibility criteria and the size of selected companies will be broadened up to include nonbank financial companies and electronic financial service providers, which will help to facilitate more financial companies to test frontier AI models to bolster their cybersecurity capacity. The total number of eligible companies for the second phase testing is 75, an increase from 49 eligible entities for the first phase testing. The size of selected companies will also be increased to 15 entities from 10 companies previously. After preparing adequate internal control mechanisms, selected companies will be able to utilize frontier AI models and SaaS programs to identify and improve upon their own cybersecurity risks. More specifically, the eligibility criteria will be eased from the current level of KRW10 trillion or more in total assets with a regular staff size of 1,000 or more to KRW2 trillion or more in total assets with a regular staff size of 300 or more. The chief information security officer (CISO) should not concurrently hold another information technology-related position within the company. There are 59 companies in total that currently meet these standards. For electronic financial service providers, a distinct set of eligibility criteria will be applied. They should have an annual electronic financial transactions volume of KRW2 trillion or more and have more than 10 percent of sales generated in the field of electronic financial services. The CISO should not concurrently hold another information technology-related position within the company. There are 16 companies in
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Aug 20, 2026

Capital Markets Rules Change on Merger Value Expected to Boost Fairness and Prevent Price Distortion

The Financial Services Commission (the FSC) announced that the National Assembly passed a proposed amendment to the Financial Investment Services and Capital Markets Act (the FSCMA) at the plenary session held on August 20, which alters the method for calculating merger value of listed companies. Under the current FSCMA and its subordinate statutes, the merger price between listed companies and their affiliates is determined based on the market value approach which has led controlling shareholders who want to set more favorable merger conditions to intentionally choose the time of merger process when the market value of the affiliates stays below its fair value, thereby suppressing the stock price of the affiliates. In this regard, the Proposed Amendment will make changes to the valuation standard for mergers from the market share price to a fair value evaluation, bolstering the procedural mechanisms intended to ensure fairness in corporate restructuring activities. Key Revision Details Introducing fair value approach Firstly, under the Proposed Amendment, when a listed company enters into a merger, a spin-off or split and merger, an acquisition or transfer of a significant business or asset, and a comprehensive share exchange or transfer (each, a Subject MA Transaction), it must calculate the transaction value based on a fair value calculated by comprehensively taking into account the share price, asset value, earning values, etc. This fair value approach also applies into the purchase price for dissenting shareholders appraisal rights. Strengthening procedural mechanisms Secondly, the board of directors of a listed company must prepare and disclose the aforementioned written opinion for the purpose and expected effect of a Subject MA Transaction, and the appropriateness of the merger price. Also, the company must undergo an evaluation by an external appraiser regarding matters such as the value of a Subject MA Transaction, the appropriateness of conditions of the
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Aug 19, 2026

FSC Announces 7th Financial Hub Policy Plan

The FSC held the 53rd financial hub development committee meeting on August 19 and announced the 7th financial hub policy plan for 2026-2028. Under the 7th three-year plan, the following four key task areas will be pursued with aims to continue to push for innovation in the financial industry and provide more substantial support for the growth of financial hubs. a) (Financial Innovation) Promote the development of innovative financial services that can serve the changing trend and needs brought by demographic shift and the advancement of AI and digital technologies, while making improvements to the operation of the financial regulatory sandbox program and fostering a fintech-friendly ecosystem. b) (Financial Infrastructure) Take a leading role in facilitating the convergence of financial and nonfinancial services and boosting efforts for sustainable finance, while shoring up support for the advancement of the domestic financial industry. c) (Capital Markets) Upgrade regulations and infrastructures to make the domestic capital markets more foreign investor-friendly, while making efforts to boost market confidence and seeking improvements in the asset management industry. d) (Financial Hub Support) Provide active support for domestic financial companies to expand their businesses overseas and strengthen communication with domestically established foreign financial companies, while taking more region-specific and individually tailored approaches for the development of financial hub strategies for Seoul and Busan. With regard to the selection of Jeonbuk State (the Special Self-Governing Province of Jeonbuk formerly known as North Jeolla Province) as a financial hub, the financial hub development committee approved the evaluation criteria and measures that have been prepared and recommended by a commissioned study. In accordance with the evaluation criteria and measures, an assessment will take place in the second half of this year in both written format and on site and
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Aug 14, 2026

Household Loans, July 2026

In July 2026, the outstanding balance of household loans across all financial sectors increased KRW6.2 trillion (preliminary), rising at a slower pace compared with the previous month (up KRW8.3 trillion). (By Type) Home-backed mortgage loans increased KRW3.5 trillion, growing at a slower pace compared with the previous month (up KRW4.5 trillion). Banks (up KRW4.3 trillion up KRW3.4 trillion) and nonbanks (up KRW0.3 trillion up KRW0.1 trillion) both saw the pace of growth decelerating. Other types of loans edged up KRW2.7 trillion, rising at a slower pace compared the previous month (up KRW3.8 trillion) with credit loans growing at a slower level (up KRW2.6 trillion up KRW2.0 trillion). (By Sector) In July 2026, household loans in the banking sector rose KRW5.4 trillion, slowing down from the growth of KRW7.6 trillion in the previous month. Banks own mortgage loans (up KRW2.9 trillion up KRW2.5 trillion) and policy-based mortgage loans (up KRW1.4 trillion up KRW0.9 trillion) both edged up at slower rates. Other types of loans (up KRW3.3 trillion up KRW2.0 trillion) also decelerated. In the nonbanking sector, household loans rose KRW0.8 trillion, growing at a similar level seen in the previous month (up KRW0.8 trillion). Mutual finance businesses (up KRW0.2 trillion down KRW0.7 trillion) saw the pace of growth turning back lower, while savings banks (down KRW0.2 trillion up KRW0.5 trillion) and specialized credit finance businesses (down KRW0.2 trillion up KRW0.3 trillion) saw the pace of growth shifting back higher. Insurance companies (up KRW1.1 trillion up KRW0.7 trillion) saw the pace of growth decelerating. (Assessment) In July 2026, the pace of household loan growth for home-backed mortgage loans (up KRW4.5 trillion up KRW3.5 trillion) and other types of loans (up KRW3.8 trillion up KRW2.7 trillion) slowed down due to the effects of self-regulatory and voluntary management measures implemented by financial companies. However, since there are expectations that h
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Aug 13, 2026

Government Plans to Boost Housing Supply and Strengthen Provision of Housing Finance Support for Young Adults

The government introduced plans to boost the supply of housing and strengthen the provision of housing finance support for non-speculative homebuyers and renters (especially young adults) at an inter-ministerial joint briefing held on August 13. At the joint briefing, the Ministry of Land, Infrastructure and Transport (MOLIT) announced plans to swiftly boost housing supply to bring stability to the housing market and the Financial Services Commission introduced comprehensive financial sector measures to help stabilize the real estate market. The measures being introduced today are aimed at shoring up the supply of housing which has seen a continuous trend of slowing down since after 2022 by seeking innovative ways to boost the quantity, pace, and distribution of housing and revitalize the supply ecosystem. At the same time, the financial sector measures are intended to facilitate the supply of housing and help to resolve the housing finance needs of non-speculative homebuyers and renters (especially young adults) while ensuring the maintenance of consistent and effective policies (household debt management measures introduced on June 27, 2025) in managing speculative demand for housing loans. Key Financial Measures The financial sector measures introduced by the FSC will expand the provision of financial support intended to shore up the supply of housing and strengthen the availability of financial assistance tailored to the specific needs of non-speculative homebuyers and renters especially for young adults. First, the provision of public guarantee support and other types of financial assistance for real estate project finance will be expanded significantly (from KRW26.3 trillion previously to KRW47.8 trillion-plus) to propel housing development and accelerate the supply of housing. The public sector guarantees for real estate project finance will be supplied in the amount of KRW23 trillion this year and KRW33 trillion next year to facilitate prompt initiation of h
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Aug 12, 2026

Strengthened Investor Protection Measures to Take Effect from August 19 for Single-Stock Leveraged Products

The Financial Services Commission announced that a set of strengthened investor protection measures will take effect for single-stock leveraged (including inverse) products from August 19. As a follow-up to the previously announced measures (July 16 and July 29), the premium/discount rate (disparate ratio) management duty of securities firms will be strengthened and investors will need to complete a mock trading session before being able to invest in single-stock leveraged products from August 19. Key Measures (1) Strengthening the management of premium/discount rates On August 12, the FSC approved a revision to the Korea Exchange (KRX)s KOSPI market regulations bolstering securities firms premium/discount rate management duty on all exchange-traded funds (ETFs) and exchange-traded notes (ETNs) from the current level of 3 percent to 2 percent for domestically listed products and from the current level of 6 percent to 5 percent for overseas listed products. Along this line, the KRX is currently working on updating its own rules to effectively restrict securities firms (liquidity providers) that are found to have intentionally or repeatedly failed to observe the premium/discount rate management duty from newly supplying liquidity in the market. In addition, the process for designating an item to be included in the investment watchlist will be streamlined from the current three-stage process to a two-stage process. The strengthening of the premium/discount rate management duty is expected to help improve investor protection as there will be less chances that leveraged products are purchased at a higher price than the value of their underlying assets and sold at a lower price subsequently. (2) Offering a mock trading session for single-stock leveraged products The KRX will expand its mock trading service offering currently in place for futures and options traders and short-sellers for those investing in single-stock leveraged products (both domestically and overseas lis
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Aug 11, 2026

Rules Change Approved to Strengthen Registration and Anti-Money Laundering Requirements of VASPs

The Financial Services Commission announced that the government approved a revision bill for the Enforcement Decree of the Act on Reporting and Using Specified Financial Transaction Information (the Act hereinafter) at the cabinet meeting held on August 11. With the revised rules in place, virtual asset service providers (VASPs) will be subject to stricter registration requirements and enhanced anti-money laundering (AML) duty in their handling of virtual asset transfers. Key Revision Details The rules change provide details regarding the registration requirements of VASPs, the notification of sanctions imposed on retired employees, the strengthened AML duty for virtual asset transfers (travel rule transactions), and the enhanced customer due diligence (CDD) requirement. I. Enhanced Entry Rules and Registration Requirements Expanded scope of major shareholders The scope of major shareholders falling under the scrutiny for the entry registration of a VASP will be expanded to include the chief executive officer or controlling shareholder of the company, and the largest shareholder and company representative if the largest shareholder is a corporate entity. Conditions for non-acceptance of registration First, VASPs should meet the following financial soundness and social credibility requirements for registration or otherwise face non-acceptance of registration. More specifically, VASPs (a) should maintain a debt ratio of 200 percent or below, (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 operating license or registration revoked in the past in violation of financial laws. Executive officers (including CEOs) of VASPs need to meet specific qualifications prescribed under the Act on Corporate Governance of Financial Companies. Largest shareholders of VASPs (a) should not have been a largest shareholder or a specially associated entity to an insolvent financial inst
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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 31, 2026

FSC Identifies D-SIBs and D-SIFIs for 2027

The Financial Services Commission identified five banks and five bank holding companies (BHCs) as domestic systemically important banks (D-SIBs) and domestic systemically important financial institutions (D-SIFIs) for 2027 at the 14th regular meeting held on July 31. Those selected for 2027 are same as the previous years list of selectionShinhan Financial Group, KB Financial Group, Hana Financial Group, Woori Financial Group, NH Financial Group, Shinhan Bank, Woori Bank, KB Bank, Hana Bank, and NH Bank. The FSC identifies D-SIBs every year in accordance with the assessment criteria recommended by the Financial Stability Board (FSB) and the Basel Committee on Banking Supervision (BCBS) and requires D-SIBs to set aside an additional common equity capital of 1.0 percent. Since 2021, the FSC also identifies domestic systemically important financial institutions (D-SIFIs) pursuant to the Act on the Structural Improvement of the Financial Industry. Those selected as D-SIFIs are required to have their own recovery plans and the resolution plans prepared by the Korea Deposit Insurance Corporation (KDIC) approved by the FSC every year. The D-SIFIs selected for 2027 have been notified of the result and will be required to prepare and submit their own recovery plans to the Financial Supervisory Service (FSS) within three months from the day of being designated as D-SIFI. Those identified as D-SIBs are required to set aside an additional common equity capital of 1.0 percent. However, since there is no change in the list of D-SIBs selected for 2027 from the previous year, there will be no actual increase in capital ratio required from them. * Please refer to the attached PDF for details.
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Jul 30, 2026

FSC Proposes Revised Rules under FSCMA for Introducing Preliminary Book Building and Cornerstone Investor

The Financial Services Commission introduced a revision proposal for the Enforcement Decree of the Financial Investment Services and Capital Markets Act (FSCMA) and subordinate regulation on the issuance of securities and disclosure on July 30. The proposed rules change is intended to establish specific details regarding the introduction of preliminary book building and cornerstone investor under the revised FSCMA, which is expected to go into effect from November 13, 2026. Preliminary book building allows bookrunners to survey market demand before a price band for IPO is determined through the disclosure of a securities registration statement. Allowing preliminary book building will help to more accurately reflect market demand and arrive at a more optimal price in IPO valuation. The cornerstone investor system allows the pre-allocation of shares from the portion of IPO shares allocated for institutional investors to those who have agreed to a lockup of at least six months. Introducing the cornerstone investor system will help to foment investor confidence in the IPO market by ensuring a steady engagement of institutional investors in advance for the medium- to long-term, while effectively addressing the problem of excessive price declines in publicly offered shares shortly after their IPOs. Key Details a) Preliminary book building (Eligibility) The asset requirement for institutional investors qualified to take part in preliminary book building will be set at KRW30 billion or more in entrusted assets for private equity funds and discretionary investment business entities. At the same time, they will be required to have a minimum level of capacity for carrying out corporate valuation and for handling the internal management of undisclosed information. (Process) After preparing an IPO due diligence report, IPO lead managers will be able to provide relevant information (which will be disclosed in a securities registration statement at a later date) to qualified insti
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Jul 29, 2026

2026 Korea Fintech Week to be Held on November 25-27

The Financial Services Commission announced that the 2026 Korea Fintech Week is scheduled to be held for three days from November 25 to 27 at aT Center (Yangjae-dong) in Seoul. Korea Fintech Week is the largest fintech exhibition and festivalorganized by Korea, providing a venue for sharing the latest fintech trends on artificial intelligence (AI) and other innovative technologies with vast opportunities to attract investment and seek collaboration for fintech businesses. The eighth annual global fintech expo this year will be held under the theme of Beyond Finance, Into the Future, focusing on the future of financial innovation and technologies. Alongside the existing partnership organizations, there will be six more partnership organizations newly taking part in this years fintech expo, offering the largest number of programs thus far (35 programs) to meet demands from diverse groups of participants. Exhibition halls for this years festival will be organized into Fintech Pavilion, Financial Pavilion, Partner Pavilion, and Global Pavilion. The number of participating businesses will be expanded by about 20 percent from the previous year. This will help to showcase more innovative financial services using AI, blockchain, smart contract, and deepfake detection technologies. There will be national fintech pavilions set up in Global Pavilion to demonstrate unique financial technologies and innovative services coming from different countries and to facilitate international fintech exchanges and collaboration. Meanwhile, the 2026 Korea Fintech Week will invite renowned experts and speakers on fintech and financial policy and global technology trend and offer seminars on the issues concerning future financial technologies, such as agentic AI, quantum computing, digital assets, cybersecurity technologies, etc. In addition, there will be various programs designed to promote fintech investment and business collaboration. The tech-finder showcase program will help to identify
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Jul 28, 2026

FSC and KRX Introduce Draft Standards for Publishing List of Companies with Low Price-to-Book Ratios

The Financial Services Commission and the Korea Exchange introduced a draft of detailed standards for the listing up (naming and shaming) of companies that have low price-to-book ratios on July 28. This is part of a broader set of measures introduced earlier in March this year that are intended to bring about fundamental improvements to the Korean capital markets. Under the naming and shaming policy, low PBR companies that are making no particular effort to improve shareholder value and are instead leaving their stock prices depressed and pinned at low levels will be listed up for publication. Key Details Listing up low PBR companies Based on the Global Industry Classification Standard (GICS), which is widely adopted for stock indexes around the world, companies in 11 key economic sectors and sub-industry groups will be ranked in the order of high to low PBRs. The listing up of stock companies in the order of high to low PBRs will take place twice yearly (on the first trading day of May and November every year). In the KOSPI market, companies that fall in the bottom 25 percent for three straight years (six consecutive times) will be listed up for publication. In the KOSDAQ market, companies that fall in the bottom 10 percent for three straight years (six consecutive times) will be listed up for publication. An exemption will be granted to companies that disclose their corporate value enhancement plans (including specific plans to improve their PBRs) to allow them to stay away from the list of low PBR companies for one year (two consecutive times). This exemption will not be provided to companies that fall under the bottom 25 percent (bottom 10 percent for KOSDAQ companies) for six straight years (12 consecutive times) even if they disclose corporate value enhancement plans. According to a brief simulation conducted by the KRX, the number of companies that are expected to go on the list of low PBR companies (as of May 2026) will range between 120 (80 KOSPI and 40 KOS
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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

Financial Authorities Prepare and Announce Measures on Single-Stock Leveraged Products (ETFs and ETNs)

The Financial Services Commission announced that the government and related authorities have prepared and unveiled a set of measures intended to improve the management of single-stock leveraged products (exchange-traded funds and exchange-traded notes) at the joint market situation review meeting held on July 16. Background With various types of leveraged products available for trading in overseas markets, such as 3x leveraged products and single-stock leveraged products, from 2025, single-stock leveraged products having domestically listed stocks as underlying assets began to list in Hong Kong. Meanwhile, since there were no such products available in the domestic market, it was pointed out that domestic investors had no other option but to directly invest in these overseas listed products that provided relatively weaker levels of investor protection mechanisms. The rapid growth in the size of the overseas market presented concerns about the possibility of a continuously growing number of domestic investors making investments in these overseas listed products having domestically listed stocks as underlying assets. Therefore, the FSC sought to introduce single-stock leveraged products (ETFs and ETNs) in the domestic market by removing the regulatory inconsistency that existed between the domestic and overseas markets to make Korean capital markets more attractable and provide more diverse investment options for investors and to ensure the provision of strengthened investor protection mechanisms under the domestic regulatory framework for investing in single-stock leveraged products at home. In this regard, the launch of single-stock leveraged products on May 27 this year had the effect of absorbing investment demand for similar products that are listed in the overseas market. However, as there appeared significant market expectation for share price increases in global memory chip companies, both the market capitalization and transactions value of single-stock levera
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Jul 15, 2026

Rules Change Proposed to Enable Loss Refund from Voice Phishing Scams Involving Virtual Assets

The Financial Services Commission introduced a revision proposal regarding the Enforcement Decree of the Special Act on the Prevention of Loss Caused by Telecommunications-based Financial Fraud and Refund for Loss (the Act hereinafter) on July 15. The use of virtual assets in telecommunications-based financial frauds, such as voice phishing (vishing) scams, has been on the rise recently. However, under the current legal framework, virtual assets are not included as a type of assets qualified for receiving vishing-related damage and loss relief. In this regard, a revision to the Act was approved in March this year to include virtual assets as a type of assets qualified for receiving vishing-related damage and loss relief, and this revision proposal for the Enforcement Decree provides further details as a follow-up to the amended Act. Key Revision Details First, the revised Enforcement Decree will provide specific criteria on the method of loss refund and how the amount of loss refund is calculated. Unlike money, virtual assets carry different values attached to them, which makes it necessary to establish specific standards on the method of refund for stolen assets. In this regard, if the type of asset that was stolen is money, the refund being made will be in monetary unit. If the type of stolen asset is a virtual asset, the refund being made will be in the same type of virtual asset in the same quantity. If there is a discrepancy between the type of asset that was stolen in the first place and the type of asset that is shown on the account that was used in the fraudulent activity, the refund being made will be in the form of asset that is shown on the account that was used in the fraudulent activity at the time of the freeze of account taking effect. In the case that there is a mixture of assets qualified for loss refund, the portion of money that was stolen will be paid out in monetary value and the portion of stolen virtual assets will be paid out in market value
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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.
Attachment 1