Press Releases - Financial Services Commission

Press Releases

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Nov 21, 2017

The 4th UK-Korea Financial Cooperation Forum Held in Seoul

The Korean Financial Services Commission (FSC) and the Financial Supervisory Service (FSS) hosted the fourth UK-Korea Financial Forum in Seoul today with the UK Treasury, the Financial Conduct Agency (FCA) and the British Embassy. The annual event, which took place alternately in London and Seoul since 2014, has served as an occasion to deepen cooperation between the UK and Korean financial regulators and expand business opportunities for both countries’ financial companies.This year’s forum focused on new challenges facing financial services sectors in both countries: falling fertility rates, ageing population and evolving technology. These changes will bring opportunities as well as threats to the financial sector. In this context, topics of this year’s forum included “the Future of the Insurance and Pension Industries” and “How to Promote Innovation in Financial Services.” The forum was attended by Korean and UK officials, financial companies and fintech businesses.In his opening speech, Choi JongKu, Chairman of the FSC said, “The UK has traditionally been a leader in finance and continues to lead in recent trends including fintech, which provides useful policy implications for Korea.” He also stressed the importance of continued cooperation in dealing with new risks that might come from the development of digital finance.In the following session, Andrew Bailey, Chief Executive Officer of the FCA delivered a speech titled “Public Policy Challenges for Consumer Protection Regulators.” In his speech, Mr. Bailey shared the findings and policy implications from the Ageing Population Project, which the FCA launched in February in 2016 to explore how the ageing population would impact the financial services industry. He emphasized the role of financial regulators needs to evolve, corresponding to changes in financial services with ageing population.On the sidelines of the forum, FSC Chairman Choi JongKu held a meeting with UK officials including K
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Apr 13, 2017

New Approach to Corporate Restructuring

FSC Chairman had a meeting with CEOs of commercial banks on April 13 to set out a new approach to corporate restructuring. The new approach was outlined to complement the existing framework of corporate restructuring; and to shift its focus to more market-based restructuring schemes, in which capital market players including private equity funds (PEFs) play a bigger role in corporate restructuring.I. BACKGROUNDThe existing system led by creditor banks has limits as companies today, which used to heavily rely on bank loans, are increasingly using capital markets for fundraising via issuance of corporate bonds or commercial papers (CPs). Such a change made the process of adjusting the interests of creditors more complex and difficult. Against this backdrop, the FSC outlined a new approach to corporate restructuring aimed at improving the current restructuring system led by creditor banks and stimulating capital market-based restructuring schemes through PEFs.II. NEW APPROACH TO CORPORATE RESTRUCTURING1. Credit Risk Evaluation System To Be Improved▪ Banks will be required to revise their credit risk evaluation models and procedures withinthe second half of this year to make more accurate and rational evaluations so that they could sort out troubled companies to be put under restructuring in a timely manner.▪ For companies under a workout program led by creditor banks, banks will have to adoptstricter evaluation standards to decide whether to continue the workout program or not. If the workout program proved inefficient, the company undergoing the workout would swiftly turn to alternative schemes such as a buyout plan led by PEFs or court receivership including the newly-introduced ‘Pre-packaged Plan’ (or ‘P-Plan’).▪ For those who have been under workout program for more than three years, an extensionof the workout period will be permitted only in exceptional circumstances after a thorough evaluation by an external auditor.2. Market-based Restructuring Sch
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Nov 13, 2016

Seven Investors Were Picked to Buy Government's Stake in Woori Bank

*Please read the attached file for details.The government decided to sell its 29.7% stake in Woori Bank to seven investors on its fifth attempt to privatize Woori Bank since 2010. The seven final winning bidders and amount of shares auctioned to each bidder are as follows: Investors % of auctioned shares1 Eugene Asset Management 4.0%2 Hanwha Life Insurance Co., Ltd. 4.0%3 IMM Private Equity, Inc. 6.0%4 Kiwoom Securities Co., Ltd. 4.0%5 Korea Investment Securities Co., Ltd. 4.0%6 Mirae Asset Global Investments Co., Ltd. 3.7%7 Tongyang Life Insurance Co., Ltd. 4.0%The government would recoup KRW 2.4 trillion from this sale, recovering a total of KRW 10.6 trillion out of KRW 12.8 trillion, which is 83.4% of the public funds injected into Woori Bank. We will continue our effort to sell the remaining 21.4% in Woori Bank for a full recovery of the public funds. The sale will be closed in mid-December this year. The Korea Deposit Insurance Corporation (KDIC) will terminate its MOU with Woori, signed for helping normalizing the bank’s business operation, as soon as the sale is closed, to guarantee the new shareholders autonomy in the bank’s management.
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Sep 26, 2016

Preliminary Bidding Result for Sale of Woori Bank

Eighteen investors submitted letters of intent (LOI) to buy the government’s 30% minority stakes in Woori Bank in a preliminary bidding. The amount of stakes for which the investors bid adds up to 82 to 119 percent shares of Woori Bank. * The name of individual investors and amount of the bid each investor made cannot be disclosed upon their request.The investors who submitted LOIs will be given opportunity to conduct due diligence in end-September. Shortlisted bidders will submit final offers in mid-November to close the sale by the end of the year.Schedule - Sending Information Memorandums(IM) and conducting due diligence (Sept.30~)- Deadline for submission of final offers (5:00 p.m., Nov.11)- Announcement of winning bidder (Nov.14)- Signing of contract and payment (Nov. 28)* The schedule may be subject to change depending on progress in the sale process. *Please read the attached file for details.
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Sep 06, 2016

Financial Assistance to be Provided for Hanjin Shipping's Local Contractors

The Financial Services Commission (FSC) and Financial Supervisory Service (FSS) came up with measures to support Hanjin Shipping’s local contractors in a bid to minimize spill-over effects of Hanjin’s filing into small local contractors. Current Situation of Hanjin Shippings’s contractorsTotal 457 subcontractors have receivables from Hanjin Shipping, which account to approximately KRW 64 billion as of end-June 2016. (as of end-June, 2016)Supportive Measures1. Government will provide financial assistance for subcontractorsThe government will swiftly provide emergency financial assistance for subcontractors and small-to-mid sized shippers. The Korea Development Bank (KDB), Industrial Bank of Korea (IBK), Korea Credit Guarantee Fund (KODIT), and Korea Technology Finance Corporation (KOTEC) will extend maturity for principal repayment of outstanding loans and guarantees by one year. The FSS will encourage commercial banks to grant grace period and extend maturity as well.The KODIT and KOTEC will provide special guarantees for subcontractors and small-to-mid sized shippers suffering from cargo delay. Up to 90% guarantee will be provided for debts of such companies and guarantee fee will be reduced by 0.2%. The guarantee will be provided by using the KRW 800 billion restructuring fund allocated in the supplementary budget. The KDB and IBK will offer emergency financial assistance to the subcontractors with temporary liquidity shortage. The KDB will grant loans worth KRW 5 billion to small-sized firms and KRW 7 billion to medium-sized ones. The IBK will provide KRW 300 million to SMEs at a rate discounted by 0.5%p. The KODIT and KOTEC will provide special guarantee with higher guarantee ratio (90%) and lower fee (↓0.2%) for SMEs whose corporate restructuring plan has been approved by the government under the Special Act on the Corporate Revitalization. The KDB will provide special loans worth total KRW 2 trillion to SMEs willing to restructure their business thr
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Sep 02, 2016

Follow-up Measures on Hanjin Shipping's Filing for Court Receivership

FSC Chairman Yim Jong-yong held a meeting on September 1 with the Korea Development Bank (KDB) and Hyundai Merchant Marine (HMM) to discuss follow-up measures regarding Hanjin Shipping’s filing for court receivership. Chairman Yim asked the KDB and HMM to exert their utmost concerted efforts to minimize problems with cargo delivery and shippers in the aftermath of Hanjin’s filing for bankruptcy protection. 1. HMM will immediately go into emergency management to minimize disorder in cargo delivery and damage to shippers. HMM will add to its sea routes the ones which used to be serviced exclusively by Hanjin Shipping – 1 in America, 1 in Europe – and start servicing of more than 13 additional ships as soon as possible. HMM will maintain freight rates for the newly-established routes to an appropriate level to ensure shippers should not face excessive increase in freight rates. 2. The Seoul Central District Court will soon determine whether to accept Hanjin Shipping’s filing, however, since we cannot completely rule out the possibility of Hanjin’s liquidation HMM will immediately form a task force to review its possible acquisition of Hanjin’s healthy assets. The TF will sort out and review Hanjin’s profitable vessels, overseas sales network and key work forces, and devise detailed plan to sell the assets to HMM. *Please read the attached file for details.
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Aug 31, 2016

FSC Statement on Hanjin Shipping's Filing for Court Receivership

FSC Vice Chairman Jeong Eun-bo held a meeting on August 31 with officials from relevant agencies to discuss the possible government’s responses following Hanjin Shipping’s decision to file for court receivership. 1. Impact on financial market will be limited.Hanjin’s filing for court receivership will have only limited impact on financial markets as the event has been already reflected to a considerable extent in the process of restructuring. In the stock market, Hanjin Shipping accounts for 0.03%, worth KRW 401 billion, of Kospi’s market capitalization. Its share price has declined 53.8% from KRW 3,540 per share on January 2 to KRW 1,635 on August 29, 2016. The impact on corporate bond market will be limited as credit ratings of Hanjin Shipping and Korean Air Lines already factored in the event. 2. Impact on financial institutions and corporate bond investors will be limited as well. Creditor banks have set aside loan loss provisions against most of possible losses. The additional amount of loan loss provisions the banks need is estimated to be KRW 0.3 trillion as Hanjin Shipping files for court receivership. The outstanding issuance of corporate bonds has continuously decreased in the restructuring process so far from KRW 2.2 trillion at end-2013, KRW 1.7 trillion at end-2014, KRW 0.8 trillion at end-2015, to KRW 0.5 trillion at end-June, 2016. Most of issued bonds are held by institutional investors. 3. The government will promote acquisition of Hanjin Shipping’s healthy assets by Hyundai Merchant Marine in a bid to maintain competitiveness of the shipping industryIn response to the market concern over the shipping sector, one of Korea’s key industries, the government will make sure to maintain the shipping industry’s competitiveness. Hyundai Merchant Marine (HMM) would acquire Hanjin Shipping’s core assets such as ships, overseas sales network and key work forces to retain Hanjin Shipping’s competitiveness as much as possible. 4. The government
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Aug 22, 2016

Government Decides to Sell Its 30% Stake in Woori Bank to Multiple Buyers

The Public Fund Oversight Committee (PFOC) decided to sell the government’s 30% stake in Woori Bank to multiple buyers with an aim to close the deal by the end of this year. Since the PFOC announced its two-track approach in July 2015 , the government has been tapping demand for the both options. We found that it would be difficult to proceed with the plan of selling a controlling stake to a single buyer under the current market situation, while there is considerable potential demand for acquiring a smaller stake. As a result, the PFOC came to a conclusion that selling the government’s stake to multiple buyers in a smaller stake of 4 to 8% each is the best option to sell Woori Bank in a swift manner, while maximizing the recovery of public funds and contributing to further development of the financial industry. 1. (Shares for sale) 30% out of 48.09% owned by the Korea Deposit Insurance Corporation (KDIC) will be put up for sale2. (Minimum and maximum bidding volume) Minimum bidding volume is 4%, including the percentage of the shares bought in previously. The bidding volume cannot exceed 8%, excluding the previously-bought shares. However, under the Banking Act, non-financial companies must acquire FSC approval in order to buy a stake more than 4% and are not permitted to acquire a bank’s stake exceeding 10%.3. (Competitive auction) The bidding will proceed in competitive auction scheme. In principle, the shares will be sold to the highest bidders, however, the PFOC will take into account factors other than bidding price considering the winning shareholders’ potential influence on Woori Bank’s management. Further details of non-price factors will be decided by the PFOC.4. (Incentives for final bidders) A winning bidder who newly acquired more than 4% will be granted right to recommend one outside director. The PFOC will devise differentiated incentives for bidders depending on their bidding volume in order to encourage bidders to bid for a larger amount of
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Jun 15, 2016

FSC Statement on Results of MSCI 2016 Market Classification Review

FSC Vice Chairman Jeong Eun-bo held a meeting on June 15 with officials from relevant agencies to discuss the government’s responses, following MSCI’s announcement of 2016 Market Classification Review. In its annual market review, MSCI announced that “Korea will not be included on the list for a potential reclassification to Developed status as part of the 2017 Review”, citing the following reasons: “the recent changes announced by the Financial Services Commission in South Korea will not take effect until 2017 and the investment frictions related to the lack of convertibility of the Korean Won and restrictions imposed by the local stock exchange on the use of exchange data for the creation of financial products remain unaddressed.” The Korean government’s stance on the MSCI requirementsThere exist some gaps between the extent of improvements that the government could make under our economic and market circumstances and the level of MSCI’s requirements, making it difficult for Korea to be included in the MSCI’s developed market index in the near future. Convertibility of the Korean Won MSCI has been asking the Korean government to allow offshore trading of the Korean won to address the lack of convertibility of the Korean won. However, we consider that currency market stability is an issue of critical importance to Korea, a small and open economy which highly relies on international trade. The Korean government seeks the internationalization of the Korean won but will move gradually, taking possible impact of currency market volatility on the Korean economy into consideration. In particular, allowing offshore trading of the Korean won is an issue that we cannot address in the short term since it would involve fundamental changes to our current forex management system. Use of KRX price data MSCI demanded that KRX should abolish immediately the “anti-competitive” clauses that require a separate contract for the use of KRX data for the purpose of
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May 24, 2016

Test Operation of Omnibus Account

The FSC/FSS and relevant agencies will launch a test operation of ‘omnibus account’ starting from May 25 with four standing proxies, two securities firms and one global financial investment company. The test run is (i) to have foreign investors engage in devising detailed procedures; and (ii) to prevent technical errors in electronic and settlement system in advance of a full operation of the omnibus account system in 2017. The test operation will be proceeding in two stages: ▪ [stage 1] Mock Trading (May 25~Sept. 2016) Participants will process a whole procedure of order, settlement and ex-post reporting through a mock trading system to check detailed operation process and stability of electronic system. ▪ [stage 2] Real Trading (Sept. 2016~before an official operation scheduled in 2017) A limited number of participants including global investors who participated in mock trading will conduct real trading through an ‘omnibus account.’ The FSC/FSS will gather their suggestions in the process of the stage 2 and amend the system until the full operation in 2017. The FSC/FSS will reflect suggestions gathered from global investors in the process of the test operation into detailed procedures of the omnibus account system; and help more global investors participate in each stage of the test run. FREQUENTLY ASKED QUESTIONS ABOUT OMNIBUS ACCOUNT Test Operation of Omnibus Account1. Why are you conducting the test run through mock trading, not real trading? - Given the nature of an ‘omnibus account’ which enables a consolidated processing of trading orders and settlements from multiple investors, detailed settlement procedures may differ according to each financial institution. If the omnibus account were testes in real trading from the beginning, it might incur losses to investors accruing from settlement errors. - The test operation will be conducted through mock trading based on various scenarios to minimize any possibility of settlement errors. We are plan
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May 20, 2016

FSC Statement on HMM Negotiations

HMM and KDB are doing their best efforts to successfully conclude their negotiations with shipowners on charter rates. What matters is successful conclusion of the negotiations; therefore, the negotiations will be proceeding without being bound to a specific timeline. However, if the negotiations dragged on for so long, it would delay restructuring process of HMM. Therefore, we hope the negotiations will be concluded as soon as possible. In regard with prospect of the negotiation, the FSC is neither optimistic nor pessimistic. We are well aware that the negotiations are a complex and tough process; and that those involved are doing their best to reach a mutually desirable conclusion. If the negotiations failed, we regard that it would be practically difficult for HMM to get back on track. In this context, the negotiations now underway are very significant. If failed despite such efforts, there would be few options left for creditors to choose. The normalization of a business requires sharing of burdens among stakeholders. Adjusting charter rates to appropriate levels is essential for normalization of shipping companies; therefore, we look forward to consideration and cooperation from shipowners. * Please refer to the attached file for details.
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Mar 14, 2016

Introduction of Korea's Individual Savings Accounts (ISAs)

Korea’s Individual Savings Accounts (ISAs) were introduced on March 14, 2016, in which individuals can invest into various financial products such as savings, funds and derivative-linked securities. Previously, individuals had to open separate accounts for each financial product. The introduction of ISAs is expected to help individuals build an investment portfolio tailored to their risk appetite and investment purpose and manage their wealth more efficiently with the aid of asset management experts. ISA products are now on sale starting from March 14 through branches of 33 financial institutions – banks, securities firms and insurers. TYPES OF ISASThere are two types of ISAs: a trust-type product and a discretionary investment product. ▪ Trust-type ISAs The trust-type ISA is aimed at individuals who want to choose financial products to be included into their accounts on their own. Without the account holder’s direction, financial institutions cannot change the composition of investment portfolio. ▪ Discretionary ISAs The discretionary ISA is targeted for those who want to let asset managers manage their money. Financial institutions provide clients with model portfolios, considering their risk appetite and investment purpose. The client is then supposed to pick one of the model portfolios to let asset managers on behalf of them choose products to be included in the account. Without the account holder’s direction, financial institutions are allowed to rebalance assets within the account every quarter, evaluating profitability and safety of such assets. ※ Since only one ISA is allowed per person, individuals have to choose either a trust-type ISA or a discretionary ISA, considering which type of the ISAs is more suitable for themselves. WHAT PRODUCTS CAN BE INCLUDED IN ISAS▪ Savings products – savings and installment savings with banks and mutual savings banks; deposits with mutual financial institutions; and RPs▪ Investment products – public of
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Feb 01, 2016

'Omnibus Account' for Foreign Investors to be Introduced

The FSC announced its plan to introduce an ‘omnibus account’ in an effort to make it easier for foreign investors to trade locally-listed stocks in the Korean stock market. The newly-introduced ‘omnibus account’ system is expected to reduce transaction costs of global asset management companies and make foreign investors’ trading of locally-listed stocks through global securities firms more convenient. BACKGROUNDThere is a growing need for the current foreign investor registration system to improve in accordance with changes in investment environment and practice: - As Korean capital markets become mature, index-tracking passive funds are taking an increasing share of the Korean stock market. Such passive funds are sensitive to transaction costs as they frequently trade in many countries. - Global securities companies are increasingly using omnibus accounts to process multiple trading orders. - The current foreign investor registration system needs to become less rigid as foreign investment limits in Korean companies were abolished except for some public purpose companies(PPC). Against the backdrop, the FSC held meetings with various market participants to gather their opinions and came up with measures to make the foreign investor registration system more reasonable and flexible in accordance with global practice. The system will be improved based on the following three principles: - enabling convenient trading of foreign investors in the Korean stock market in accordance with global investment practice, - ensuring conformity with other relevant domestic rules such as Korean tax regime, and- maintaining monitoring of foreign capital in Korea’s FX and stock markets, which is one of the core functions of foreign investor registration system. CURRENT FOREIGN INVESTOR REGISTRATION SYSTEM1. OverviewForeign investors must register their personal information with the FSS before they can invest in locally-listed stocks. Upon registration, foreign investors are
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Oct 02, 2015

FSC Plans to Revise the KDIC-Woori Bank MOU

The FSC plans to revise an MOU signed with Woori Bank in 2000 in a bid to boost corporate value of Woori Bank and give the bank more autonomy in its management. We expect the revision to help assure market participants the government’s commitment to privatize Woori Bank and improve the bank’s corporate value to facilitate the sale. 1. Under the current MOU, the KDIC’s control is eased when its stake in Woori Bank falls below 50%. The revision will add a new requirement so that the KDIC’s control could be eased if accumulated recoupment of public funds exceeds 50% of the total injection of public funds into Woori Bank. * Woori Bank has recouped KRW 8.2 trillion, 64.2% of the total injection of public funds worth KRW 12.8 trillion as of end-September 2015. 2. The revision will specify conditions to terminate the MOU as the sale of the controlling stake in Woori Bank is open to both single buyer and multiple investors to form an oligopoly of shareholders. With the revision, the MOU could be terminated after approval by the Public Fund Oversight Committee (PFOC) in case that the KDIC no longer exercises effective control over the bank’s management – e.g. the controlling stake is sold to multiple investors to form an oligopoly of shareholders. 3. To give the bank more autonomy in generating profits, profitability will be evaluated by ROA and ROE, while factors such as the ratio of selling, general administrative expenses to adjusted operating income and adjusted operating income per capita will be removed. 4. To help the bank’s management work under a long-term plan, targets and evaluations under the MOU will be more focused on mid-to-long term ones.*Please refer tothe attachedPDF for details.
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Sep 04, 2015

FSC Chairman Meets Foreign Banker Group

FSC Chairman Yim Jong-yong held a meeting this morning with the CEOs of foreign banks’ branches and representative offices in Korea to listen to their views and suggestions for improvement on Korea’s financial regulatory environment and help resolve difficulties in doing business in Korea.Prior to listening to suggestions made by foreign bankers, Chairman Yim pledged to lower entry barriers for foreign banks and introduce more flexibility in business licensing requirements for a foreign bank’s branch. For example, foreign banks have been recommended to open a representative office before they file an application for a business license to set up a branch. It is now up to foreign banks’ decision so that they are allowed to file an application for a business license to launch a local branch without opening a representative office. In practice, Indonesia’s BNI and China’s Guangda Bank have recently filed an application for launching its Korean branch respectively, which is now under review for regulatory approval. Currently, foreign banks are required to meet at least one of three requirements to start business in Korea in regard with credit ratings, asset levels and the number of foreign branches. In reviewing such requirements, the FSC will introduce more flexibility depending on the scope and nature of their business. As the FSC pushes forward its financial reform initiative to strengthen the financial sector’s competitiveness, we welcome views and suggestions from foreign financial institutions. The FSC will continue to improve Korea’s financial regulatory system in accordance with international standards. * Please refer to the attached PDFfor details.
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Aug 17, 2015

KRX Designated as Trade Repository

BackgroundIn the aftermath of the global financial crisis, G20 nations are introducing Trade Repository(TR) as an instrument to strengthen regulations on over-the-counter derivatives market. TR is a financial market infrastructure that collects, manages, and analyzes data related to OTC transactions.In line with such global trend, the FSC and FSS announced a plan to introduce TR in Korea on June 17, 2004 and have been engaging in relevant preparatory procedures.Introduction of TR in KoreaThe FSC, FSS, and financial experts formed a task force and conducted a thorough study related to TR from July to December, 2014. A special committee was formed in July 2015 to devise detailed qualification standards to be designated as TR based on the study results.On August 17, the Korea Exchange was finally designated as TR after going through a screening process on two bidders for TR - the KRX and Korea Securities Depository.Expected EffectsIntroduction of TR is expected to improve credibility and global competitiveness of Korea’s financial market infrastructure. It will also enhance financial transaction transparency and strengthen market monitoring capability as it enables more efficient management and analysis of data related to OTC derivatives transaction.*Please refer to the attachedPDF for details.
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Aug 07, 2015

Notice for Financial Customers upon Designation of Temporary Holiday on August 14

▪ All financial markets will be closed. Most financial institutions will be closed as well.▪ Financial customers with loans due August 14 can repay their loans on August 17 without overdue interest.In commemoration of the 70th anniversary of the Korean independence, August 14 is designated as temporary holiday. All financial markets including securities and bond markets will be closed. Most financial institutions will be closed as well.* Pleaserefer tothe attachedPDF for details.
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Jul 22, 2015

Revision to Regulation on Financial Institutions

The revision to「Regulation on Financial Institutions’ Outsourcing of Data Processing Business IT Facilities」will take effect upon its approval by the Financial Services Commission (FSC) on July 22, 2015. The revision includes shifting of the current ‘ex-ante’ regulations to ‘ex-post’ regulations to reduce financial institutions’ burden related with outsourcing of data processing business.*Please click the attached file for details.
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Jul 22, 2015

FSC Gives Preliminary Approval for Hana Bank-KEB Merger

The FSC held its 14th meeting and gave preliminary approval for the merger of Hana Bank and Korea Exchange Bank (KEB). As members of the executive board and governance structure of the new Hana-KEB bank have not been decided yet, eligibility of executives and appropriateness of governance structure will be reviewed in the final review process upon submission of request for official approval for the merger. * Please click the attached file for details.
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Jul 21, 2015

Statement on Privatization Plan for Woori Bank

The Public Fund Oversight Committee (PFOC), a deliberative body in charge of privatizing Woori Bank, held a meeting today to discuss how to push forward the privatization and decide on the new plan. 1. The PFOC decided to consider a new approach of selling 30% to 40% out of the government’s 48.07% stake to multiple buyers in smaller portions ranging from 4% to 10%, in addition to its previous plan of selling the controlling stake to a single buyer. After searching for potential buyers, we came to a conclusion that it is difficult to find a single buyer for the controlling stake, while there are multiple potential investors interested in a partial stake, who will form a group of major shareholders to control the board of directors. We expect the new option to draw more diverse market interests. The remaining stake, a maximum of 18.07%, will be open for smaller investors. 2. Woori Bank needs to continue to make efforts to further boost its corporate value in order to facilitate its privatization. 3. In the process of tapping potential buyers, we recognized that market participants are still concerned whether the government would continue to intervene in the bank’s management after the bank is privatized. In order to dispel such worries, the government will improve the implementation of the MOU with the bank even before the completion of the sale in order to ensure the bank’s autonomy in management. Upon the sale, the MOU will expire. We reaffirm that the government will never intervene in the bank’s management. 4. Given insufficient investors’ interest in Woori Bank, it is difficult to proceed with the sale process immediately. We will continue to make our efforts to make the market condition mature enough to attract sufficient demand for the bank. 5. The government has a strong commitment in pushing forward the sale of Woori Bank and will continue to make our utmost effort to privatize Woori Bank as early as possible. * Please refer to the attached PDF for
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