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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Mar 03, 2026
- FSC Holds Meeting to Monitor Financial Market Conditions over Middle East Situation
- Chairman Lee Eog-weon of the Financial Services Commission presided over a meeting with officials from related authorities and financial institutions to check financial market conditions over the Middle East situation on March 3. At the meeting, officials went over the economic and financial market conditions ahead of the market opening of the day amid expanding geopolitical uncertainty in the Middle East region. Officials also discussed ways to provide assistance to the small- and medium-sized exporters engaged in business operation in the conflict affected region. The sharp increase seen in international oil prices on the previous day appear to have subsided somewhat, and major stock markets are mostly trending lower or staying flat, while the price of gold and the value of USD are strengthening due to higher demand for safe assets. Since financial markets may experience expanded volatility depending on the developments of the Middle East situation with a potential impact on the real economy, officials shared the same view on the need to continue to stay vigilant and ensure close cooperation and concerted responses. Despite deepening uncertainty surrounding the Middle East, FSC Chairman Lee said that the Korean economy and its financial markets are equipped with strong fundamentals and that the government has sufficient policy capacity to deal with external uncertainties. In this regard, Chairman Lee said that it is important for market participants to remain confident and avoid hasty decisions or movements. Since ensuring stability in the economy and financial markets is a top priority, the government, the Bank of Korea, and the Financial Supervisory Service will maintain close coordination to monitor market situations and ensure prompt implementation of contingency plans (market stabilization programs worth KRW100 trillion-plus) when it becomes necessary. Additionally, to prevent a potential of unfair trading activities spreading on heightened market uncertainti
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Feb 25, 2026
- FSC Abolishes Caps on Whistleblower Rewards for Market Manipulation and Accounting Fraud
- The Financial Services Commission (FSC) will overhaul its whistleblower reward program to strengthen incentives for insiders to report unfair trading and accounting fraud. Under the current framework, payouts are capped at KRW 3 billion for unfair trading and KRW 1 billion for accounting fraud levels widely viewed as insufficient to encourage insiders to come forward. In addition, rewards are unavailable if reports are filed with other enforcement authorities, such as the National Police Agency. To sharpen incentives, the FSC will: (i) abolish all caps on whistleblower rewards; (ii) provide rewards of up to 30% of recovered illicit gains or penalties; and (iii) make whistleblowers eligible for rewards regardless of which government agency first receives the report. Key Measures 1. Uncapped Whistleblower Rewards for Market Manipulation and Accounting Fraud Under the current framework, even when a tip leads to the recovery of billions of won in illicit gains, rewards remain subject to fixed caps. Given that sophisticated offenses such as market manipulation and accounting fraud are often difficult to detect without insider information, the existing limits fail to adequately compensate informants for the risks involved, thereby weakening reporting incentives. The FSC will therefore abolish reward caps through amendments to the Enforcement Decrees under the Financial Investment Services and Capital Markets Act (FSCMA) and the External Audit Act. The revisions reaffirm the governments commitment to ensuring that market manipulation and accounting fraud are detected without exception and subject to severe sanctions. 2. Rewards of Up to 30% of Recovered Gains or Penalties The current reward formula is complex, making it difficult for potential whistleblowers to estimate in advance how much they may receive. In addition, the bracket-based structure has resulted in reward payments that are not commensurate with the amount of recovered illicit gains. The revised framework wi
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Feb 23, 2026
- FSC Introduces Measures to Promote Sound Development of Mutual Savings Banks
- Chairman Lee Eog-weon of the Financial Services Commission held a meeting with the CEOs of twelve mutual savings banks and related organizations and discussed ways to promote sound development of mutual savings banks on February 23. A Summary of Remarks by FSC Chairman Amid an enduring risk of default originating from real estate market volatility, digital transition in the financial industry, and a polarization in the savings banks sector, it is now crucial to have a structural transformation in the industry for the survival and growth of savings banks. Against this backdrop, the FSC has prepared a set of measures to promote sound development of savings banks to facilitate their transition away from the short-term profit driven and community-centered operational model toward a more real economy-oriented and nationwide operational approach. In this regard, the financial intermediary function of savings banks should move away from real estate and collateral operations toward the real economy sector, such as SMEs, MMEs, and small merchants, in a more balanced way. To help savings banks retain their competitiveness amid changing business environment, the FSC will seek to overhaul relevant regulations pertaining to their operating practices. In order to propel a transition toward productive finance and remove regulatory hurdles for savings banks, a condition of sound management practices should be met. Therefore, the FSC also plans to carry out regulatory reforms regarding the soundness and governance structure of savings banks commensurate with the size and role of savings banks. Key Measures a) Promoting a transition toward productive finance and upgrading rules on operating practices to make them more reasonable The FSC will seek to overhaul regulations to make the financial intermediary function of savings banks more balanced across the real economy, transitioning away from the real estate sector toward SMEs, MMEs, and small merchants. To this end, the FSC will seek
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Feb 08, 2026
- FSC Holds Meeting to Review Situations over Bithumb's Erroneous Payouts and Discuss Improvement Measures
- Chairman Lee Eog-weon of the Financial Services Commission convened a meeting with officials from the Korea Financial Intelligence Unit (KoFIU) and the Financial Supervisory Service (FSS) on February 8 to review situations concerning erroneous payouts of bitcoins (BTC) by Bithumb, which took place on the evening of February 6, and to discuss measures to strengthen the internal control system of virtual asset exchange service providers. Current Situation In the wake of accidental payouts of bitcoins (BTC) by Bithumb, which took place around 19:00 on February 6, an emergency meeting was held where the authorities discussed the issue of providing compensations for users following a sharp drop seen in the price of bitcoin (BTC). In this regard, Bithumb announced its own plans to offer compensations for its platform users whose sell transactions were affected by the accident and to make sure that its BTC users ledger is being maintained accurately. At todays meeting, FSC Chairman Lee instructed officials to check whether there are any further damages to users and to continue to monitor the progress of on-site inspections performed by the FSS and any significant movements in the virtual asset market. Government Response In response to Bithumbs erroneous payouts, an emergency response unit was set up at yesterdays meeting, consisting of officials from the FSC, KoFIU, FSS, and DAXA (Digital Asset Exchange Alliance), to make sure that necessary steps are taken to protect the users of virtual assets. As such, at todays meeting, the authorities discussed ways bring about regulatory and structural improvements to strengthen the reliability and transparency of virtual asset exchange service providers. In response to the recently exposed vulnerability in the internal control system of virtual asset exchange service providers, FSC Chairman Lee instructed officials to conduct inspections on Bithumb and all other virtual asset exchange service providers and to make sure that they ar
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Feb 02, 2026
- AI-driven Stock Market Monitoring System Adopted to Boost Early Response Capacity against Unfair Trading Activities
- The Financial Services Commission announced that the Korea Exchange (KRX) will begin to operate an AI-driven market monitoring system from February 3 to bolster its early response capacity against market manipulation and other unfair trading activities. Despite recent increases in the number of attempts to unfairly influence and manipulate stock prices through dissemination of false information online, it remained difficult for authorities to verify the vast volume of data circulating in the cyberspace. Against this backdrop, as a follow-up to the comprehensive measures to stamp out unfair trading activities in stock markets (jointly announced by the FSC, FSS and KRX in July 2025), the KRX has developed an AI-driven monitoring system to more quickly and accurately detect and analyze relevant information circulating in the cyberspace. The newly launched AI-driven market monitoring system has been developed based on the training and analysis of online posts, reported cases of spam text messages, YouTube videos, and relevant data on stock price movements on the stock items that have been previously identified as potential targets of unfair transactions. Based on a set of objective indicators that the AI has learned from the training, the system has been designed to monitor trends of cyber information, assign scores on individual stock items, and automatically detect the items showing a high probability for unfair transactions activities. The findings will assist authorities to look into whether there are actually suspicious transactions activities involving certain stock items and help them to conduct more in-depth examinations if deemed necessary. With the AI-driven market monitoring system in place, authorities will be able to more quickly respond to suspicious transactions activities. The types of cyber information being monitored on a real-time basis will be expanded with an enhanced level of efficiency in sorting out high-risk stock items. The AI-based automated d
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Jan 29, 2026
- Legislative Ground Established to Check Criminal Record on Major Shareholders of Virtual Asset Service Providers
- The Financial Services Commission announced that a revision bill for the Act on Reporting and Using Specified Financial Transaction Information (the Act hereinafter) passed the plenary session of the National Assembly on January 29. The revision is intended to strengthen entry rules for virtual asset service providers and allow the notification of sanctions imposed on former (retired) employees of financial companies. Key Revision Details a) Strengthening of entry rules for virtual asset service providers With the revised law in place, the rules concerning the market entry of virtual asset service providers have been strengthened. More specifically, the revised law authorizes the Korea Financial Intelligence Unit (KoFIU) to check criminal record on major shareholders when screening for the registration of a virtual asset service provider. Previously, only the chief executive and other executive officers were subject to criminal background check. Under the revised law, the scope of laws under which previous rule-breaking activities are screened for will also be broadened to include violations regarding illegal narcotics trafficking, fair trade, tax offenses, specific economic crimes, virtual asset user protection, etc. Additionally, the revised law will enable the KoFIU to examine financial conditions and social credibility of virtual asset service providers and whether they are equipped with appropriate levels of organizational, human resources, computer network, and internal control capacities for complying with relevant regulations. Moreover, even after granting an approval of business registration, the revised law establishes a ground for the KoFIU to impose certain conditions for the purpose of ensuring anti-money laundering, user protection, etc. b) Notification of sanctions imposed on retired employees of financial companies The revised law also includes a provision authorizing the KoFIU to notify financial companies about the issuance of sanctions imposed on
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Jan 19, 2026
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Jan 15, 2026
- Legislative Ground Established to More Effectively Prevent Suspicious Transactions Linked to Vishing Scams
- The Financial Services Commission announced that a revision bill for the Special Act on the Prevention of Loss Caused by Telecommunication-based Financial Fraud and Refund for Loss passed the National Assembly at a plenary session held on January 15. The amended legislation provides a legal ground for relevant officials and authorities (in finance, telecom services, and investigation) to share and make use of suspicious data on the previously established AI-based Anti-phishing Sharing and Analysis Platform (ASAP). Key Revision Details First, the amended legislation establishes a new term fraud-linked suspicious account to allow the sharing of information for suspicious accounts not only for fraudsters but also for victims. Previously, financial companies were able to share information about the accounts used in frauds and those suspected to have incurred damage, but these were all account information related to fraudsters. Thus, previously, there was no legal ground for financial companies to share information about victims accounts. Second, to make sure a stable operation of the AI-based Anti-phishing Sharing and Analysis Platform (ASAP), the FSC is authorized to designate a data sharing and analysis institution. Based on high levels of data analysis expertise and selection criteria, the FSC will designate a data sharing and analysis institution, which will then establish its own technological, physical, and managerial measures to make sure stability in the sharing of data. The FSC will also have the supervisory authority over this institution to revoke designation and take other steps if it fails to carry out duties properly. Third, under the amended Act, the types of information provided through ASAP are more clearly established to increase predictability. In addition, when fraud-related data is being transmitted to the data sharing and analysis institution, there is no need to acquire consent from the data subject (fraudsters and victims) to facilitate a speedy
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Jan 14, 2026
- Responsibilities Mapping to be Piloted for Large-sized Specialized Credit Finance Businesses and Savings Banks
- The Financial Services Commission announced on January 14 that the responsibilities mapping system will be piloted for large-sized specialized credit finance businesses with total assets of KRW5 trillion or more and savings banks with total assets of KRW700 billion or more. With the amended Act on Corporate Governance of Financial Companies (the Act hereinafter) taking effect from July 3, 2024, banks and financial holding companies (from Jan. 2, 2025), as well as large-sized financial investment companies and insurance companies (from Jul. 2, 2025) have already become subject to the submission of their own responsibilities maps to the Financial Supervisory Service. Pursuant to the Act, large-sized specialized credit finance business with total assets of KRW5 trillion or more and savings banks with total assets of KRW700 billion or more will need to submit responsibilities maps to the FSS by July 2, 2026. Smaller-sized financial investment businesses and insurance companies with total assets below KRW5 trillion will also be subject to the July 2 submission due date. From the time responsibilities maps are submitted to the FSS, the chief executives and other executive officers of financial companies become subject to the duty of internal control oversight and risk management in their lines of work, and may become subject to sanctions if found to be in violation of the internal control oversight duty. In this regard, there have not been sufficient incentives made available previously to encourage financial companies to adopt responsibilities maps in advance prior to the legally mandated submission due date, especially due to concerns over potential sanctions for violation. As such, the FSC and the FSS will pilot the responsibilities mapping system for large-sized specialized credit finance businesses and savings banks prior to the actual enforcement date (July 2, 2026). Those wishing to participate in the pilot program will need to submit their own responsibilities map
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Dec 29, 2025
- KoFIU Kicks Off Taskforce Meeting to Seek Regulatory Improvements in Anti-money Laundering Framework
- The Korea Financial Intelligence Unit (KoFIU) held the kickoff meeting of the taskforce for revamping rules regarding the Act on Reporting and Using Specified Financial Transaction Information (the Act hereinafter) on December 29. The taskforce has been organized with goals to upgrade relevant regulations on Koreas anti-money laundering (AML) framework, provide more effective responses against transborder crimes and serious financial frauds, and prepare for a mutual evaluation on AML/CFT with the Financial Action Task Force (FATF) scheduled to be held in 2028. At todays meeting, the taskforce went over the regulatory issues that need to be upgraded and discussed operational plans going forward. First, the taskforce plans to seek regulatory improvements regarding virtual asset service providers (VASPs). In this regard, the travel rule, which currently requires VASPs to provide information about users sending and receiving virtual assets when requested to transfer virtual assets worth KRW100 million or more to another VASP, will be expanded to virtual asset transfers of less than KRW100 million. Moreover, the taskforce will work to draw up AML measures in preparation for the impending rules on stablecoins and the ensuing changes in its ecosystem. Second, the taskforce plans to seek regulatory reforms to make domestic AML framework more congruent with global standards in preparation for the FATF mutual evaluation. In line with the FATF recommendations, authorities will seek to introduce a suspension of account activities on suspicious accounts to more effectively cut off the flight of criminal proceeds in the middle of a criminal investigation. Additionally, authorities will consider introducing AML rules for attorneys, certified public accountants, and tax accountants to help make Koreas AML rules more consistent with global standards. Third, the taskforce plans to draw up measures to improve the effectiveness of AML requirements and make the inspection and sanctions
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Dec 16, 2025
- Revised Rules on Payment Gateway Services to Strengthen Protection of Unsettled Funds for Users
- The Financial Services Commission promulgated a revision to the Act on Electronic Financial Transactions (the Act hereinafter) on December 16. The revised law requires payment gateway (PG) services to separately manage the total amount (100 percent) of unsettled funds externally and establishes provisions for more effective management and supervision over PG services. Under the revised Act, PG services will be obligated to externally manage unsettled funds in their entirety for their sellers and users. The revised Act also increases the capital requirements for PG services in accordance with the volume of quarterly payments transactions.In this regard, PG services that have more than KRW30 billion in quarterly payments transactions will be newly required to meet the minimum capital requirement of KRW2 billion. In addition, PG services will be required to re-register the status of major shareholder when there is any change in the status of major shareholder to help prevent disqualified entities from entering the market Additionally, the revised Act establishes a legislative ground for the authorities to issue a corrective order, suspend the operation of business, and revoke business registration for noncompliance, while making PG services subject to the duty of disclosure of information to ensure protection of users. Since these administrative sanctions will take effect immediately from the day of promulgation, the financial authorities will provide adequate information to the industry to encourage compliance. The duty to externally manage unsettled funds and the increased capital requirement will take effect from December 17, 2026 after preparing subordinate statutes to provide further details. However, to facilitate a seamless adjustment in the industry, the authorities will provide relevant guidelines on the external management of unsettled funds for PG services from January next year. * Please refer to the attached PDF for details.
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Dec 15, 2025
- FSC Holds Market Monitoring Meeting and Decides on Continuous Operation of Market Stabilization Programs
- Chairman Lee Eog-weon of the Financial Services Commission presided over a meeting with relevant authorities, research institutions, and market experts on December 15 to review financial market conditions and risk factors going forward. A Summary of FSC Chairmans Remarks In the first half of this year, there were growing anxieties over financial markets due to the Trump administrations tariff policy and uncertainties regarding domestic politics. However, in the second half of the year, the Korean economy and market conditions recovered backed by rigorous policy efforts of the new government and improvement in corporate earnings in the semiconductor sector. Despite this overall sense of stability, there is growing vigilance over domestic financial markets with government bond yields showing an upward movement and the foreign exchange market showing an expanded level of volatility recently. Nonetheless, the Korean economy is sufficiently equipped with the resilience and the policy capacity to respond to crisis situations backed by strong fundamentals. First, domestic financial institutions have been maintaining an adequate level of soundness. Second, Koreas foreign exchange reserve is the ninth largest in the world. Third, credit default swap (CDS) premium in Korea has been brought down significantly from the beginning of this year. In addition, some of the potential risk factors and structural problems for the economy, such as household debt, real estate project finance, and the soundness of nonbank financial institutions, are also being adequately addressed and stably managed through ongoing policy measures. However, since it is possible to see growing market volatility in the future, the FSC will continue to closely work with related authorities to carefully monitor market conditions and take bold and proactive steps to employ market stabilization measures when it becomes necessary. Next year, the FSC will strive to push for major transformation in the financial in
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Nov 27, 2025
- Revised Rules on Payment Gateway Services to Ensure Safe Protection of Unsettled Funds for Users
- The Financial Services Commission announced that a revision bill for the Act on Electronic Financial Transactions (the Act hereinafter), with strengthened rules on payment gateway (PG) services, was approved by the National Assembly at the plenary session held on November 27. In the wake of large-scale payment failures involving PG services in July 2024, the FSC and related government ministries prepared a set of measures intended to bolster the protection of unsettled funds for users (sellers) and strengthen the oversight and supervisory mechanisms on PG services. The revised rules passed at the National Assembly today include these measures drawn up by the government last year. Key Revision Details First, PG services will be required to separately manage the total amount (100 percent) of unsettled funds externally in the form of deposit, trust, or payment guarantee insurance. In addition, the externally managed unsettled funds will not be allowed for a transfer or to be used as a collateral, or put up for confiscation or setoff by a third party. A priority right to payments will also be introduced as a legal means to ensure the safe protection of unsettled funds for sellers. Additionally, the revised rules establish a legislative ground to impose sanctions and penalties (a) if the unsettled funds are found to have been used for some other non-settlement purposes (imprisonment of up to 10 years or up to KRW100 million in fine), (b) when found to be in violation of the external management duty (administrative fine of up to KRW50 million, business suspension for six months or less), or (c) if there is a failure of making payment within the agreed upon settlement period (administrative fine of up to KRW50 million). However, considering the potential burden of regulatory compliance placed on PG services, there will be a grace period of one year after the promulgation of the revised rules. After the one-year grace period, the external management duty will be phased in g
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Nov 24, 2025
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Nov 04, 2025
- Revised Rule Approved to Strengthen CDD Requirement on Specialized Credit Finance and Consumer Credit Businesses
- The Financial Services Commission announced that the government approved a revision bill for 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) at the cabinet meeting held on November 4. The revision intends to strengthen the responsibility of financial companies in the prevention of loss caused by financial frauds or vishing (voice phising) scams. Under the revised rule, specialized credit finance businesses (excluding the ones specialized in new tech financing) and consumer credit businesses that have KRW50 billion or more in assets will be newly subject to the customer due diligence (CDD) duty in their handling of loan services. This is a follow-up to the comprehensive measures for strengthening anti-vishing efforts introduced in March this year. In order to prevent loss caused by vishing scams and facilitate a quick recovery of the lost money, the Act prescribes rules on account freeze and restoration of lost money for victims, which have thus far been applied mainly to the account-issuing financial institutions, such as banks, savings banks, and mutual finance businesses. However, since there are cases where stolen personal information is being used by scammers to take out loans, the need to expand the application of CDD obligation to loan businesses, such as specialized credit finance businesses and consumer credit businesses, is growing in order to more effectively counter and prevent vishing scams. Therefore, pursuant to the revised rule, specialized credit finance businesses (excluding the ones specialized in new tech financing) and consumer credit businesses that have KRW50 billion or more in assets will need to conduct CDD in their handling of loan services (via telephone, mobile phone, face-to-face, video call, etc.). When found to be in violation of the CDD obligation, it may be possible to impose an administrative fine of up to KRW10 million an
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Oct 29, 2025
- AI-based Anti-phishing Sharing and Analysis Platform (ASAP) Launched to Bolster Protection against Financial Scams
- The Financial Services Commission held a meeting with related authorities and organizations, financial industry groups, and private sector experts on October 29 and announced the launching of AI-based Anti-phishing Sharing and Analysis Platform (ASAP). At the meeting, participants had in-depth discussions on the governments policy responses to more effectively prevent vishing scams. Anti-phishing Sharing and Analysis Platform (ASAP) Key Details With the launching of ASAP, all financial companies (about 130 entities) will be able to share and make use of vishing related data (9 types and 90 categories in total) on a real time basis. The nine different types of data subject to the sharing are as follows(a) information about victims account (14 categories), (b) information about the account used in vishing scam (18 categories), (c) information about the account suspected to be linked to vishing scam or victim (15 categories), (d) information about the overseas account verified to have been used in vishing scam (8 categories), (e) other types of information sought for investigation (12 categories), (f) information about fake IDs (8 categories), (g) information about the potential victim uncovered through police investigation (4 categories), (h) information about phishing sites (5 categories), and (i) information about malicious apps (6 categories). In particular, information about victims account, the account used in vishing scam, and the overseas account verified to have been used in vishing scam will be shared among all participating institutions on a real time basis to more proactively and quickly cut off criminal activities. The types of information about suspicious accounts deemed to have been involved in vishing scams (identified through financial companys fraud detection system) and other types of suspicious accounts having frequent transactions with the former, as well as the types of information about the suspicious transaction activities uncovered through poli
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Oct 22, 2025
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Oct 15, 2025
- Authorities Unveil Measures to Bolster Management over Housing Loan Demand with Aims to Stabilize Housing Market
- The Financial Services Commission held a meeting on household debt with officials from related ministries, financial institutions, and industry groups on October 15 and announced additional measures to strengthen household loan management for implementing the governments housing market stabilization plan. At the meeting, officials assessed that household debt growth has been largely stabilized since the introduction of June 27 household debt management measures. However, in certain districts of the Seoul metropolitan area, housing prices have continued to move upward. With expectations for rate cuts and continuation of brisk housing market conditions, it is concerning that the market overheating in certain areas may spread to other regions. As such, the financial authorities viewed that it is necessary to introduce additional measures to preemptively control demand for housing loans. Key Measures Applying Different Levels of Maximum Mortgage Loans Based on House Prices (Effective from Oct. 16) The maximum amount of mortgage loan a borrower is eligible to take out for purchasing a house in the Seoul metropolitan and speculation regulated areas will be determined differentially based on the price (market value) of house. For houses with market value of up to KRW1.5 billion, the maximum amount of mortgage loan will remain the same at the current level of KRW600 million. For houses priced at more than KRW1.5 billion and up to KRW2.5 billion, the maximum amount of mortgage loan will be reduced to KRW400 million from the current level of KRW600 million. For houses valued at over KRW2.5 billion, the maximum amount of mortgage loan will be reduced to KRW200 million from the current level of KRW600 million. The differentially determined cap on mortgage loans will help to more effectively control demand for purchasing highly priced homes in the Seoul metropolitan and speculation regulated areas using mortgage loans. Tightening Stressed DSR Rule (Effective from Oct. 16) The cu
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Oct 01, 2025
- Rule Change on ESG Rating and Disclosure to Enhance Financial Risk Management Related to Industrial Accidents
- The Financial Services Commission approved a revision to the Korea Exchange (KRX) disclosure rules on October 1 requiring listed companies to timely disclose information regarding the occurrence of industrial accidents to strengthen the management of financial risks associated with industrial accidents. The FSC also introduced a rule change proposal intended to strengthen the annual and semi-annual disclosure duties regarding the occurrence of industrial accidents. In addition, ESG rating institutions have made changes to their ESG rating guidance incorporating the occurrence of industrial accidents in the evaluation of corporate ESG practices. First, the revised ESG rating guidance incorporating industrial accidents into the evaluation of corporate ESG practices will take effect from October 1. Prior to this, socially controversial issues including the occurrence of industrial accidents were considered for evaluation by ESG rating institutions on a voluntary and non-binding basis. However, with the growing impact of industrial accidents on corporate valuations, it has become necessary to more closely manage this issue. As such, ESG rating institutions have made an update to their ESG rating guidance incorporating major controversial issues, such as industrial accidents, into the evaluation of corporate ESG practices, effective from October 1. Along this line, ESG rating institutions will also need to make efforts to enhance the quality and capacity in their rating services to more systematically reflect financial risks associated with industrial accidents and boost confidence on their ESG rating services. The KRX will regularly make comparison and assessment on ESG rating institutions compliance with the updated guidance. Second, listed companies will be subject to a timely disclosure of information regarding the occurrence of industrial accidents. Currently, listed companies are required to file KRX disclosures only when accruing a significant loss in properties o
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Sep 23, 2025
