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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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-phising 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-phising 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-phising 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 phising 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 police
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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
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Sep 17, 2025
- FSC Introduces Measures to Strengthen Management of Financial Risks Associated with Major Industrial Accidents
- The Financial Services Commission introduced measures to strengthen the management of financial risks associated with major industrial accidents on September 17, which are part of the governments comprehensive plan for ensuring industrial safety announced earlier on September 15. The comprehensive plan to ensure industrial safety is aimed at providing structural solutions to the root cause of industrial accidents, and it includes financial sector measures including credit evaluation, assessment in capital markets, etc. In this regard, the FSC has prepared specific measures intended for all financial sectors, such as loans and insurance, policy financing, and disclosure and assessment in capital markets, and plans to carry out follow-up measures accordingly. As investors are becoming more interested and concerned about the risk of major industrial accidents, with the enhanced administrative and judicial measures in place, companies with a record of major industrial accident may face significant challenges in terms of their business operation and investment activities (e.g. stock prices falling). In this regard, the financial sector needs to take proactive steps to manage risks and protect investors in order to maintain the soundness. To ensure a systematic management of financial risks associated with major industrial accidents, the financial sector plans to strengthen rules over soundness management and introduce incentives for the prevention of industrial accidents. Summary of Key Measures Bank loan - Industrial accidents will be taken into account for credit evaluation purposes. - All banks will be subject to the same rules regarding the reduction and/or suspension of loan commitment (in the event of a major industrial accident). Project finance (PF) loan guarantee by Korea Housing Finance Corporation - Screening criteria to be strengthened for defective construction, safety accidents, etc. - Companies certified with outstanding safety management performance will
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Sep 07, 2025
- Authorities Hold Meeting and Announce Additional Measures to Strengthen Household Debt Management
- The Financial Services Commission held a meeting on household debt with officials from related government ministries, industry groups, and housing loan and guarantee institutions on September 7 and announced additional measures to tighten household debt management to implement the governments housing supply expansion plan. At the meeting, officials assessed that household debt growth decelerated amid the implementation of the strengthened household debt management measures (announced on June 27). However, the pace of growth expanded somewhat in August with housing prices also increasing in certain regions. In addition, officials pointed out that due to recent expectation about interest rate cuts, there exists market expectation for rising real estate prices. In this regard, officials viewed that it is necessary to introduce additional measures, while ensuring a consistent implementation of the June 27 household debt management measures. Additional Measures to Strengthen Household Debt Management Strengthen Loan-to-Value Regulation in Regulated Areas (50% 40%) The loan-to-value (LTV) ratio applied on mortgage loans for purchasing homes in the speculation regulated areas will be tightened to 40 percent from the previous level of 50 percent. This will help to contain demand for loans especially in the speculation regulated areas, while helping to improve the soundness management for both households and financial companies. Restrict Loans to Private Housing Business Entities (LTV = 0%) The loan-to-value ratio applied on mortgage loans for those registered as housing business entities (for purchasing and leasing purposes) will be set at zero percent in the Seoul metropolitan area and/or speculation regulated zones, which will help to restrict the issuance of business loans in ways that could bypass the tightened mortgage rules. However, as there are concerns about potential shortages in rental housing, exemptions may be granted for newly built housing units upon approval
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Aug 28, 2025
- FSC Introduces Measures to Strengthen Anti-vishing Capabilities in Financial Sector
- The Financial Services Commission introduced a set of measures intended to strengthen anti-vishing capabilities in the financial sector on August 28. The measures are part of the governments comprehensive plan to root out vishing scams announced earlier on the same day. Key Measures I. Introduce Liability of Compensation and Strengthen Response Capabilities The government plans to introduce liability of compensation in legislation for the loss incurred in part or in whole resulting from a vishing scam for those entities that bear the responsibility of preventing vishing scams, such as financial companies. With the advent of AI technologies in crimes and the use of stolen personal data in highly manipulative and psychologically domineering ways, the methods used by vishing perpetrators these days show that they are advancing evermore rapidly. In this regard, practice of caution by individuals alone cannot effectively prevent damages, and that it is now time to more systematically and proactively respond to vishing scams through strengthening the responsibility of financial companies that are equipped with the needed expertise and infrastructure, such as fraud detection system (FDS). Earlier in January 2024, financial companies had adopted standards for providing compensation for loss incurred in online or mobile financial frauds on a voluntary basis. However, compensations were provided only under specific conditions (e.g. use of fraudulent passwords) on a restricted basis, which had limited impact on the overall improvement of anti-vishing efforts across the financial industry. Thus, once the liability of compensation clause is put into legislation, victims of vishing scams will be able to receive at least a certain level of compensation from financial companies even if the transfer of money which led to financial loss was carried out by the victim him/herself under duplicitous circumstances. Making financial companies liable to compensation will also provide them w
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Jul 30, 2025
- FSC-FSS-KRX Launch Joint Response Team to Root Out Stock Market Manipulation
- The Financial Services Commission, the Financial Supervisory Service, and the Korea Exchange launched a joint response team on stock market manipulation and held the newly created teams signboard unveiling ceremony on July 30. The joint response team is a collaborative operation of the three organizations set up at the KRX, and it aims to bolster the initial response function of KRXs market surveillance committee. Prior to the signboard unveiling event, Chairman Kwon Dae-young of the Securities and Futures Commission (SFC) held talks with the staff of the newly created team and reaffirmed the importance of stamping out unfair trading activities in capital markets. A Summary of Opening Remarks by SFC Chairman Putting an end to stock market manipulation can be seen as a start of building confidence in the market. Stock manipulation should be caught at any cost, and when detected, the violator should be subject to economic sanctions surpassing the level of unfairly gained profits, and the manipulator should not be able to engage in securities transactions or serve as an executive of a listed company. Simply put, the violator should be effectively barred from capital markets. With the establishment of a joint response team, the physical, informational, and jurisdictional separation and division previously existing between the three organizations have been effectively removed. The planned introduction of AI technology and upgrading KRXs market surveillance system to make surveillance more individual-focused rather than account-based will also help the operation of the joint response team. The financial authorities will also seek to enhance cooperation with investigative authorities to make sure that follow-up criminal investigations take place more swiftly and effectively. With regard to the recent cases involving employees of financial companies, authorities will make sure to bring severe punishment against them. At the same time, financial companies should strengthen s
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Jul 28, 2025
- Authorities Propose Plans to Set Up Anti-vishing Platform Using Artificial Intelligence Analytics
- The Financial Services Commission held a meeting with related authorities, private sector experts, and financial industry associations on July 28 and introduced measures to step up anti-vishing response efforts and set up a comprehensive anti-vishing platform using artificial intelligence (AI) analytics. Anti-vishing AI Platform Currently, individual financial companies are able to take appropriate anti-vishing measures on suspicious account activities based on the operation of their own fraud detection systems (FDS). However, the current response system faces hurdles in its capacity in that individual financial companies have experience with only limited numbers of prior vishing cases and carry out surveillance only based on their own analysis of scam patterns. Moreover, even when they detect an account used for vishing scam, there is no instant information sharing between financial companies, so that they lack sufficient information about the newly emerging types and patterns in vishing scams individually. This has also created significant divergence between financial companies in their anti-vishing response capacities and has not helped to speed up the process of suspending problematic accounts used in criminal activities. In this regard, the anti-vishing AI platform is a digital data infrastructure that will help the authorities to tackle these limitations in the current anti-vishing response system. The platform will gather information and data on suspicious accounts from across all financial sectors, telecom service providers, and investigative authorities and will operate two different types of information categoriesthose required for immediate sharing and those analyzed by AI. The types of information categorized as requiring immediate sharing will be instantly disseminated and shared with financial companies and related organizations to facilitate immediate suspension of account activities. This will help to quickly freeze multiple financial accounts used i
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Jul 23, 2025
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Jul 23, 2025
- FSC Identifies D-SIBs and D-SIFIs for 2026
- The Financial Services Commission identified five bank holding companies (BHCs) and five banks as domestic systemically important banks (D-SIBs) and domestic systemically important financial institutions (D-SIFIs) for 2026 at the 14th regular meeting held on July 23. Those selected for 2026 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 Kookmin Bank, KEB Hana Bank, and NH Bank. Those identified as D-SIBs are required to set aside an additional common equity capital of 1.0 percent. The FSC identifies D-SIBs every year in accordance with assessment criteria recommended by the Basel Committee on Banking Supervision (BCBS). Meanwhile, the FSC also identifies D-SIBs as domestic systemically important financial institutions (D-SIFIs) under the amended Act on the Structural Improvement of the Financial Industry. D-SIFIs are 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 a D-SIFI. Since the D-SIBs selected for 2026 are the same as 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 23, 2025
- Capital Market Rule Changes Proposed to Strengthen Response against Unfair Trading Activities
- The Financial Services Commission issued a preliminary notice of regulatory changes on July 23 regarding the Enforcement Decree of the Financial Investment Services and Capital Markets Act (FSCMA) and subordinate rules to strengthen early response and bring more stern measures against unfair trading activities. Key Revision Details I. Establish a regulatory ground to upgrade KRXs surveillance system to make it more individually-focused (from account-based system currently) Under the current system, the KRX performs surveillance based on accountsand not based on individualsas it is not authorized to make use of investors personal information. As such, surveillance targets remain too broad and it is difficult to identify activities connected to the same entity. Thus, the revision proposal authorizes the KRXs market surveillance committeein its surveillance capacityto process investors personal data (resident registration number in pseudonymized form). Based on this, the KRX will be able to perform more individually-focused market surveillance. This transition from the current account-based to a more individual-centered approach will help to boost the efficiency in market surveillance as surveillance targets will be reduced by about 39 percent. Moreover, it will allow the authorities to more effectively and quickly find out and identify whether certain activities have been carried out by the same entity, what and how much role did the rule-breaker play in manipulating stock prices, and whether there was cross trading involved. II. Strengthen the criteria for imposing penalty surcharges and introduce aggravated sanctions criteria a) Penalty surcharge for unfair trading activities Under the current penalty surcharge standards, unfair trading activities can be subject to penalty surcharges amounting to either 50 percent to 200 percent of the amount of unfairly gained profits (for use of undisclosed material information, price manipulation, or unfair transaction) or 50 per
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Jul 22, 2025
- Maximum Deposit Protection Coverage of KRW100 Million Scheduled to Take Effect from September 1
- The Financial Services Commission announced that the government approved a set of legislative revision bills raising the maximum deposit protection coverage to KRW100 million from KRW50 million previously at the cabinet meeting held on July 22. The increased deposit protection coverage will take effect from September 1, 2025. Since the Depositor Protection Act was revised on January 21 this year raising the minimum deposit protection level to KRW100 million, the FSC and related ministrieshad worked on amendments to six Enforcement Decrees, which were approved at the cabinet meeting today. Therefore, starting from September 1 this year, the maximum deposit protection coverage in the case of a financial company turning insolvent will be raised to KRW100 million for banks, savings banks, insurance companies, and financial investment businesses that are covered by the Korea Deposit Insurance Corporation (KDIC) under the Depositor Protection Act. Moreover, mutual finance businessescredit unions, agricultural cooperatives, fisheries cooperatives, forestry cooperatives, and community credit cooperativesthat are covered by their own federation funds will also be subject to the increased deposit protection limit of KRW100 million. Principal-protected savings and installment savings products will be covered up to KRW100 million regardless of when the account was opened. However, investment products such as funds that are linked to the performance of fund management will not be covered. In addition, retirement pension plans, pension savings, and accident insurance payments that are handled separately within the same financial company will also be subject to the increased deposit protection coverage. Since the increase in deposit protection coverage will take effect for the first time in 24 years since 2001, it is expected that depositors will be entitled to enhanced protection of their savings and there will increased credibility over financial market stability. Moreover, cons
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Jul 09, 2025
- Authorities Lay Out Plans to Stamp Out Unfair Trading Activities in Stock Markets
- The Financial Services Commission, the Financial Supervisory Service, and the Korea Exchange introduced joint measures to stamp out unfair trading activities in stock markets on July 9. The financial authorities have held a series of meetings and discussions in the past month to seek ways to strengthen initial response and ensure strict punishment on unfair trading activities (price manipulation, etc.). The following measures have been prepared based on these discussions. Key Measures I. Establish a Joint Response Team to Root Out Stock Price Manipulation Under the current response system for unfair trading activities, the examination (KRX) and investigation (FSC FSS) functions are dispersed across different organizations, and they each have different levels of authority, for instance, to check financial (securities or bank) accounts or force investigation. This led to the problem of delay in responding to cases which required urgent actions from the authorities. Thus, in order to boost the efficiency in examination and investigation, the FSC, the FSS, and the KRX plan to establish a joint response team to root out stock price manipulation. The joint response team, a collaborative operation among the FSC, the FSS, and the KRX, will be set up at the KRX with an aim to bolster the initial response function of KRXs market surveillance committee. The joint response team will work under the same workspace and perform investigations on important cases that require urgent response together from the early stage. In the process, each organization (FSC, FSS, and KRX) will make utmost use of its investigative authority to promptly carry out investigations on cases associated with (a) frequent rule-breakers, (b) largest shareholder or company executives, (c) use of false information on social media, etc. II. Upgrade KRXs Surveillance System to Make It More Individually-focused (from account-based system currently) and Adopt AI Technology in Market Surveillance Under the current
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Jun 27, 2025
- Authorities Introduce Measures to Strengthen Household Debt Management Centered on Seoul Metropolitan Area
- The Financial Services Commission held a meeting on household debt on June 27 with officials from related government ministries, industry groups, and housing loan and guarantee institutions. At the meeting, officials discussed the expanding trend of household debt triggered by mortgage loans in the Seoul metropolitan area and announced a set of measures that will help to strengthen the management of household debt especially in the Seoul metropolitan area. Household Loans In recent months, the outstanding balance of household loans has been growing since April due to the rising volume of housing transactions in the wake of temporary lifting of the land transaction permit scheme in Seoul and expectation for rate cut, and this trend has continued into June. With the rise in the volume of housing transactions in the Seoul metropolitan area,mortgage loans in this region has grown rapidly in particular. Key Measures I. Bolstering Total Management Target Considering the economys nominal GDP growth forecast and the recent trend of household debt growth, the annual target volume of household loanswhich include both financial companies own loan products and government-sponsored policy loanswill be revised down from the current level. For financial companies own loan products across all financial sectors, the total annual target volume will be reduced to 50 percent of the previous level effective from the second half of this year. For policy loans, the annual supply plan will be 25 percent less than the previously set level. II. Applying Banks Self-regulatory Measures in All Other Financial Sectors The implementation of self-regulatory household debt management measures taken up by banks on a voluntary basis will be expanded to all other financial sectors. First, in the Seoul metropolitan area and/or speculation regulated zones,current homeowners (multiple-house owners or single-house owners without the intention to sell currently owned house) will not be allowed to purchase
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May 20, 2025
- FSC Announces Plan to Implement Third-stage Stressed DSR Rule as Scheduled from July 1
- The Financial Services Commission held a meeting on household debt with officials from related government ministries, industry groups, and five major banks on May 20. At the meeting, officials reviewed recent household debt situation and risk factors and discussed detailed measures for implementing the third-stage stressed debt service ratio (DSR) rule as scheduled from July 1, 2025. Moreover, the financial authorities, officials from related ministries, and financial industry groups vowed to more closely communicate and cooperate to ensure stable management of household debt. Household Loans In 2025, the trend of household loan growth remained stabled in the first quarter. However, in April, the outstanding balance of household loans across all financial sectors increased KRW5.3 trillion from the previous month (up KRW0.7 trillion), growing at a notably faster pace. In April, home mortgage loans grew at a faster pace (up KRW3.7 trillion up KRW4.8 trillion), and other types of loans including credit loans shifted back up from the decline seen a month ago (down KRW3.0 trillion up KRW0.5 trillion). This pattern of growth appears to be continuing in May. At the meeting, officials assessed that the overall growth of household loans in April was mainly due to the recent rise in housing transactions pushing up mortgage loans and the low base effect from the previous month where sales or cancellation of nonperforming debt took place at the end of the first quarter. Considering the expectation of interest rate cuts in the future and the effects of the scheduled increase in deposit insurance coverage from September 1 this year on nonbank financial institutions, officials emphasized the need to ensure a preemptive management over household debt. Implementation of Third-stage Stressed DSR Rule After coordinating with related authorities, the FSC decided to implement the third-stage stressed DSR rule* as scheduled from July 1, 2025. * The stressed DSR rule imposes a certain lev
