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Mar 20, 2023
- KoFIU Unveils H2 2022 Survey Result on Virtual Asset Service Providers
- The Korea Financial Intelligence Unit (KoFIU) conducted a survey on 36 registered virtual asset service providers (VASPs) in order to ascertain the current state of the domestic virtual asset market. Survey Overview (Respondents) 36 VASPs (27 exchange service providers and 9 other businesses) (Survey Method) Data collected from VASPs by paper surveys (Period Covered) July 1, 2022 to December 31, 2022 Key Survey Findings for H2 2022 The domestic market for virtual assets in H2 2022 was downsized significantly compared to that of H1 2022 in terms of market capitalization, trading volume, operating profits, etc.This seems to be caused by a contraction in the real economy due to interest rate and price hikes, as well as a decline in confidence following the Luna crash and the collapse of FTX. According to the survey, the amount of deposits in KRW and the number of users, which show potential investment demands in the future, both declined. Investment in the global top ten virtual assets, such as Bitcoin, handled by the KRW-based exchange service providers increased from 46 percent in H1 2022 to 57 percent in H2 2022 (up about 11 percentage points), which is greater than that in non-mainstream virtual assets. New listing of virtual assets also dropped significantly by about 72 percent compared to H1 2022, showing a tendency of VASPs conducting their operations more conservatively following the Terra-Luna crash. The newly analyzed items in the H2 2022 survey include the reason for suspending transaction (delisting of a virtual asset) and the VASPs compliance status with the travel rule.In H2 2022, the most prevalent reasons for delisting of virtual assets were in the order of project risk (50 percent), investor protection risk (22 percent) and market risk (22 percent). The amount of transactions between domestic VASPs that were subject to the travel rule amounted to KRW7.5 trillion, about 25 percent of all VASPs external transfer volume (KRW30.6 trillion) in H2 2022. The
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Mar 16, 2023
- Prudential Regulations on Banks to be Revamped for Improving Loss Absorbing Capacity
- The FSC and the FSS discussed the plans for bolstering capital adequacy and loan loss reserve requirements in the banking sector to improve banks loss absorbing capacity, as part of the agenda at the 3rd working group meeting of the taskforce on improving the management and operating practices of banks and banking system held on March 15. Background The banking sector, whose soundness remained in good shape even in the pandemic situation, has faced with growing uncertainties since interest rates sharply increased and the won-dollar exchange rates surged in 2022. (Capital Adequacy) As of the end of September 2022, the CET1 (common equity tier 1) capital ratio stood at 12.26 percent, which is well above a minimum CET1 capital ratio requirement (7.0 to 8.0 percent), but is lowered than 12.99 percent at the end of 2021 due to the impact of losses on bond portfolio, etc. When compared to major economies,the capital adequacy remains relatively low, and banks recent moves to expand dividends are likely to lead to a further decline in their capital ratios in the future. (Asset Soundness) The delinquency rate on bank loans, which had fallen during the pandemic, is gradually edging upprimarily led by the household sector, due to recent increases in loan interest rates, etc. In order to ensure sufficient loss absorbing capacity of the banking sector in preparation for future uncertainties, authorities plan to improve prudential regulations on banks (capital adequacy and loan loss reserve requirements) for preemptive risk management. Measures to Revamp Prudential Regulations in Banking Sector I. Improvement of Capital Adequacy Requirement a) Imposition of Countercyclical Capital Buffer (CCyB) (As Is) CCyB was introduced in 2016 as part of the Basel III capital regulations but the level of CCyB remains zero percent until now. As the amount of credit rapidly increased from the second half of 2019, there were signals in which banks were supposed to accumulate CCyB. However, due to
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Mar 16, 2023
- 3rd Working Group Meeting Held on Improving Management, Operating Practices of Banks and Banking System
- The FSC and the FSS held the 3rd working group meetingof the taskforce on improving the management and operating practices of banks and banking system on March 15, chaired by FSC Vice Chairman Kim So-young. Details of 3rd Working Group Meeting Discussions First, participants discussed policy direction for prudential regulations on banks to improve their loss absorbing capacity. Financial authorities introduced their plans to ensure that banks have sufficient loss absorbing capacity in preparation for future uncertainties by bolstering prudential regulations. In this regard, authorities will consider imposing countercyclical capital buffer (CCyB) to enhance banks overall capital adequacy ratio and introducing stress capital buffer depending on each banks risk management status and stress test result. In addition, authorities are currently working on revising the regulations on supervision of banking business, which will authorize financial authorities to request banks to set aside special reserves for loan loss and conduct a regular inspection every year on banks models for forecasting estimated loss and demand improvements if the results are deemed insufficient. Regarding these measures for enhancing banks loss absorbing capacity, participants said that it is necessary to consider appropriateness not only in the amount of capital buffers but also in the timing and the pace of implementation. First, participants said that improving the effectiveness of CCyB accords with the recent developments in capital requirements and research direction. If prudential regulation is tightened in the banking sector, however, it may cause a balloon effect in which potential risks move to the non-banking sector. In this regard, participants emphasized the need for a balanced approach, which considers the soundness of the nonbank sector as well. They also stated that it is necessary to keep close tabs on the real estate market, given similarities between the credit cycle and the real e
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Mar 09, 2023
- 2nd Working Group Meeting Held on Improving Management, Operating Practices of Banks and Banking System
- The FSC and the FSS held the 2nd working group meetingof the taskforce on improving the management and operating practices of banks and banking system on March 8, chaired by FSC Vice Chairman Kim So-young. Details of 2nd Working Group Meeting Discussions First, participants got briefed on and discussed the current progress in the development of a single-stop online loan transfer infrastructure and authorities plan for its expanded application. Authorities reviewed the progress of construction of a credit loan transfer system which authorities aim to launch in May 2023. To facilitate competition in the financial industry, authorities will broaden the scope of participating institutions (financial institutions, loan comparison platforms, etc.), make its fees calculation system more reasonable, and expand its service availability to include not only credit loans but also home mortgage loans. In this regard, participants said that a reasonable fees calculation for using the interest rate comparison platform is needed, and that it is essential to watch out another oligopoly created by platform business operators. Second, participants held in-depth discussions on ways to promote competition between the banking and nonbanking sectors as an extension of the discussion held in the recent meeting.Firstly, the financial investment, insurance and specialized credit finance business sectors each made a presentation on more concrete description of competition that can be realized when payment settlement services are allowed for its sector, following improvements in consumer convenience and ways to solve the previously identified risks. Regarding these, participants said that it is necessary to look at the payment settlement infrastructure from the perspective of for the same function, same risk and same regulations apply. If nonbanks are allowed to provide payment settlement services, various positive benefits to the public are expected such as convenient use of diverse types of
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Mar 09, 2023
- Household Loans, February 2023
- In February 2023, the outstanding balance of household loansacross all financial sectors declined KRW5.4 trillion compared to last month (m-o-m). The year-on-year change rate also dropped at a greater level (down 1.3 percent) compared to last month (down 1.3 percent), which showed a continuing trend of decline. Financial authorities will closely monitor household debt situation to keep it at a stable level, while continuing to inspect whether there exist any risks to household debt caused by high interest rates. (Overall) Household loans across all financial sectors dropped KRW5.4 trillion in February 2023. The year-on-year change rate (down 1.3 percent) declined at a faster pace compared to the previous month (down 1.0 percent in January), showing a continuing trend of decline since the second half of last year. (By Type) Mortgage loans (m-o-m) dropped for two consecutive months, and other types of loans also continued to decline. - (Mortgage Loans) Mortgage loans fell KRW0.6 trillion as both the banking sector and the nonbanking sector saw a drop of KRW0.3 trillion each. - (Other Types of Loans) Other types of loans fell KRW4.8 trillion, led by credit loans (down KRW2.5 trillion), but the pace of decline was slower compared to the previous month (down KRW7.1 trillion in January). (By Sector) Household loans edged down in both the banking and nonbanking sectors. - (Banking Sector) Household loans in the banking sector declined KRW2.7 trillion in February. Regarding mortgage loans, banks saw a growth in policy mortgage loans (up KRW1.0 trillion) and general individual mortgage loans (up KRW0.7 trillion), but a drop in jeonse loans (down KRW2.5 trillion),which resulted in a decline of banks mortgage loans for the first time since relevant statistics began to be collected in 2015. Other types of loans from banks dropped KRW2.4 trillion, led by credit loans (down KRW1.9 trillion), but the pace of decline slowed compared to the previous month. - (Nonbanking Sector) Nonb
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Mar 08, 2023
- SFC Imposes Penalty Surcharge on Violation of Short Selling Regulation for First Time
- The Securities and Futures Commission (SFC), a sub-commission of the FSC responsible for the oversight of the securities and futures market, reached a decision on March 8 to impose penalty surcharges of KRW3.87 billion and KRW2.18 billion on company A and company B, respectively, for their naked short selling activities, which violate the regulations on short sales prescribed in Article 180(1) of the Financial Investment Services and Capital Markets Act (FSCMA). Previously, illegal short selling activities were handled with administrative fine or caution. This is the first instance where authorities are imposing penalty surcharge on entities who committed those activities. While closely cooperating with relevant institutions, authorities will continue to maintain effective market monitoring, detection and investigation system on violation of regulations against short sales, and continue to strictly penalize illegal activities. Summary of Violation and Details of Discussion a) Company A had recorded on its internal system some amount of ◇◇◇ stocks that are expected to be issued through a capital increase without consideration before they are actually issued, in order to assess the value of its funds. Then, perceiving the stock as those can be sold, the company submitted sell orders on 210,744 ordinary shares (KRW25.14 billion) of ◇◇◇, which the fund had no ownership of, within a certain period in 2021. This was in violation of the regulation that prohibits naked short selling. b) Company B had erroneously entered the information of the borrowed △△▽ stocks, the name of which is similar to that of △△△ stocks, into its balance management system. Then, based on this overstated balance, the company submitted sell orders on 27,374 ordinary shares (KRW7.329 billion) of △△▽ stocks (which the company actually had no ownership of) on a certain day in 2021. This was in violation of the regulation that prohibits naked short selling. As this is the f
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Mar 06, 2023
- FSC Holds Meeting to Review Corporate Bond and Money Market Situation and Real Estate PF Risks
- The FSC held a meeting with relevant authorities to review the corporate bond and short-term money market situation and risks in the real estate project finance (PF) market on March 6.At the meeting, authorities discussed (a) the current corporate bond and money market trends, (b) direction for addressing risks in the real estate PF market, (c) direction to revise the inter-creditor agreement in real estate PF, and (d) measures to support private sector-led real estate PF restructuring. Inspection Results on Corporate Bond and Money Market At todays meeting, participants assessed that the corporate bond and money markets are showing clear signs of recovering from the contraction seen in the second half of last year. Corporate bond spreads have narrowed since the end of November last year,and demands for issuing corporate bonds are being smoothly absorbed in the market as the volume of non-financial corporate bonds issued in last January and February surpassed the amount of bonds reaching maturity.In the money market, interest rates on commercial papers (CPs) have continued to declinedue to the turnaround in liquidity conditions, and those on PF-ABCPs (project finance asset backed commercial papers) also appear to be on decline, compared to the end of last year. However, it is necessary to watch over market situations with vigilance because interest rates on PF-ABCPs with rating of A2 or lower still remain high, and as the issuance of corporate debts with shorter term maturities is taking place more frequently. Meanwhile, there still remain high uncertainties around financial markets this year, as it is forecast that the U.S. will continue to maintain its current tightening stance for longer with the help of its strong economic indicators and the higher-than-expected price indices and the war between Russian and Ukraine and the friction between the U.S and China continue. Therefore, participants agreed to continuously monitor the volatility of corporate bond and mone
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Mar 03, 2023
- Interest Rate Disclosure to be Expanded in Banking Sector to Promote Competition
- Financial authorities announced a plan to expand banks disclosure of the differences between interest rates on deposits and loans at the 1st working group meeting of the taskforce on improving the management and operating practices of banks and banking system held on March 2. The following are specific measures of the plan. a) Along with the current comparative disclosure on the differences between interest rates on newly transacted deposits and loans across different banks, the banking sector will additionally provide comparative public disclosure on the differences between interest rates on outstanding balance of deposits and loans among different banks, which will show the profitability level of each bank. In addition, the banking sector will also provide information on detailed interest rate of loans (household loans, business loans, etc.) and deposits based on outstanding balances. b) Interest rates on jeonse loans, which are highly relevant to peoples daily life, offered by individual banks will be comparatively disclosed in order to facilitate clear comparison of interest rates on jeonse loans (interest rates on home mortgages and credit loans are currently being disclosed). c) The banking sector will comparatively disclose individual banks interest rates on household loans in a more detailed manner, which subdivide them into base rate, spread, and preferential rate, intended to help customers compare respective characteristics of banks interest rates calculation. d) Each bank will voluntarily add a new webpage to put up explanations of the factors that bring about changes in their interest rates, such as expansion of loans to low- and mid- credit borrowers or increased ratio of short-term bank borrowings. Authorities plan to revise the detailed regulations on supervision of banking business and set up a computer network system between the Korea Federation of Banks and individual banks with a goal to begin implementation of these measures in July this year.
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Mar 03, 2023
- 1st Working Group Meeting Held on Improving Management, Operating Practices of Banks and Banking System
- The FSC and the FSS held the first working group meetingof the taskforce on improving the management and operating practices of banks and banking system on March 2, chaired by FSC Vice Chairman Kim So-young. At the meeting, authorities shared the operating method of the working group and taskforce as well as discussed specific task items intended to promote competition in the banking sector and seek improvements in its industrial structure. Method of Operating the Taskforce and Working Group The taskforce and its working group will make public details of discussion on each task item after each meeting in order to enhance the understanding of general public. During discussions, authorities will consider not the interest relationship between different sectors but practical benefits to the general public, such as an improvement in consumer access to financial services, reduction in interest rate burdens, etc., as a core criterion, upon which specific improvement measures are prepared. In addition, in the process of taskforce and working group discussions, if there are certain task items that can be implemented early, authorities will immediately announce related improvement measures and promptly carry out follow-up actions. In this regard, participants were briefed and discussed on the measures to expand disclosure of the differences between interest rates on deposits and loans at todays working group meeting as a way to promote interest rate competition in the banking sector. They decided to implement the measures to require banks to disclose not only the differences between interest rates on newly transacted deposits and loans but also those between interest rates on outstanding deposit and loan balances. Especially, alongside promoting competition in the banking sector, authorities will promptly examine and review issues related to the banks interest rate calculation system and bonus remuneration practices. First, regarding banks interest rate calculation system, th
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Feb 28, 2023
- Fast-Track System to be Utilized Effectively in Investigation of Unfair Trading Activities
- The FSC, the FSS, the Korea Exchange and Seoul Southern District Prosecutors Office held a joint council meetingon February 27. At the meeting, authorities discussed and reviewed the outcome of operating the fast-track system in handling unfair trading activities in 2022. The fast-track system, introduced in 2013, is an emergency measure by Chair of the Securities and Futures Commission (SFC) in which a case deemed urgent and significant can be referred to the prosecutors office without going through the SFCs deliberation. If a case under investigation by the FSC or the FSS is deemed to have urgent need of the prosecutors investigation due to concerns about a suspect fleeing or a potential destruction of evidence, SFC Chair can decide to quickly refer the case to the prosecutors office after consulting with relevant authorities. In 2022, the FSC and the FSS referred a total of 20 casesto Seoul Southern District Prosecutors Office through the fast-track system, leading to prosecution of numerous offenders within short periods of time. In order to more effectively respond to unfair trading activities, which are becoming more sophisticated and organized, authorities will strengthen cooperation among related agencies and concentrate more investigative capacity on major cases that have a potential to inflict significant losses to investors. By utilizing the fast-track system, authorities will take swift and stern responses against major cases involving unfair trading activities, and make continuous efforts to improve the operation of the fast-track system. Major Fast-Tracked Cases in 2022 [Case #1] Case involving circulation of false information about COVID-19 test kit and sale of company stocks at high price for profiteering (Case Summary) The offenders (a) acquired a KOSDAQ-listed company (company A) through a leveraged buyout (LBO: MA without own capital), (b) then spread a rumorabout company As COVID-19 test kit to drastically push up its stock price,and (c) sold the
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Feb 10, 2023
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Feb 09, 2023
- Household Loans, January 2023
- In January 2023, the outstanding balance of household loansacross all financial sectors declined KRW8.0 trillion (m-o-m) and the growth rate also dropped at a faster pace (down 1.0 percent, y-o-y), showing a strong trend of decline. Financial authorities will ensure stable management of household debt and continue to seamlessly implement the normalization of relevant loan regulations to help non-speculative homebuyers. (Overall) Household loans across all financial sectors dropped KRW8.0 trillion in January 2023. The year-on-year growth rate (down 1.0 percent) declined at a faster pace compared to the previous month (down 0.5 percent), showing a continuous trend of slowing down. (By Type) Mortgage loans went down month-on-month for the first time since relevant statistics became available in 2015, and the rate of decline for other types of loans has also increased. - (Mortgage Loans) Mortgage loans fell KRW0.6 trillion in January, led by jeonse loans (down KRW1.8 trillion) and home-backed mortgage loans from nonbank sectors (down KRW0.6 trillion) such as mutual finance. - (Other Types of Loans) Other types of loans fell KRW7.4 trillion, as the rate of the decline increased compared to the previous month (down KRW5.2 trillion), led by credit loans. (By Sector) Household loans edged down in both the banking and nonbanking sectors. -(Banking Sector) Household loans in the banking sector declined KRW4.6 trillion in January. Regarding mortgage loans, banks saw a growth in government-sponsored mortgage lending (up KRW1.7 trillion) and group lending for new apartment subscription (up KRW0.3 trillion), but a drop in jeonse loans (down KRW1.8 trillion).Other types of loans from banks dropped KRW4.6 trillion, declining at a faster pace from a month ago (down KRW2.9 trillion) led by credit loans (down KRW3.8 trillion). -(Nonbanking Sector) In January, nonbanks saw a drop of KRW3.4 trillion in household loans with a slight rise in savings banks (up KRW0.1 trillion) but declines
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Feb 06, 2023
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Jan 31, 2023
- Authorities Plan to Improve Rules Regarding Dividend in Line with Global Standards
- The FSC and the Ministry of Justice announced measures to improve rules regarding dividend to make companies procedures for distributing dividends more consistent with international standards. First, by issuing an authoritative interpretation on the Commercial Act and revising the Financial Investment Services and Capital Markets Act (FSCMA), authorities will make improvements to the current procedure for distributing dividends to enable investors to invest after checking dividend amounts to receive. Second, authorities will pursue diverse measures to induce voluntary and active adoption of the improved dividend distribution procedure from companies by revising and notifying the model articles of incorporation for listed companies, requiring companies to disclose whether they have adopted the improved dividend distribution procedure on their corporate governance reports, etc. Authorities expect that these measures will help to alleviate factors contributing to the so-called Korea discount, promote dividend investing and bolster companies dividend payout ratios, and create an environment where more investors are encouraged to turn to long-term dividend investing for regular dividend income which will help to ease volatility in stock markets. Background Most companies in Korea designate shareholders who will receive dividends at the end of each year prior to determining dividend amounts at general shareholders meetings held in the following spring. As a result, investors invest in companies without knowing how much they will receive in dividends, and they have no choice but to accept the decision on dividends that will be made a few months later. These rules and practices, which discourage dividend investing of earning regular dividend income, remain inconsistent with global standardsand have been pointed out as a factor contributing to the so-called Korea discount, an undervaluation of the Korean stock market by foreign observers. Therefore, dividend investing in Kor
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Jan 30, 2023
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Jan 26, 2023
- SFC Imposes Penalty Surcharge on Overseas-based Financial Investment Entity for Market Disturbance
- The Securities and Futures Commission (SFC), a sub-commission of the FSC responsible for the oversight of the securities and futures market, decided on January 26 to impose a penalty surcharge of KRW11.88 billion on an overseas-based financial investment business entity (securities firm A hereinafter) for disturbing market order with its high-frequency algorithmic trading activities. This is the first instance in Korea where authorities reached a decision to impose a penalty surcharge for market disturbance caused by high-frequency algorithmic trading activities.With the growth in the volume of high-frequency algorithmic transactions recently, financial authorities will continuously strengthen the administration of market risks associated with them. Overview The SFC recognized that securities firm A engaged in an activity of disturbing market order in its transactions of a total of 264 stock items in 6,796 trading periods via a Seoul-based securities firm (securities firm B) between October 2017 and May 2018, and decided to impose a penalty surcharge of KRW11.88 billion on securities firm A, pursuant to the Article 429-2 of the Financial Investment Services and Capital Markets Act (FSCMA). Violation Securities firm A engaged in trading activities using its algorithmic trading system, which enables it to acquire and analyze data on price quotation and trade executions as well as submit buy and sell orders via direct market access (DMA)more quickly than ordinary retail investors. In the process, securities firm A placed orders intensively and repetitively within a short period of time in the following pattern(a) placing immediate-or-cancel (IOC)buy market orders to exhaust all quantities of best ask prices in succession, and (b) submitting buy limit orders on any remaining unfilled quantity where there is no bid price given in order to newly generate the best bid price (inflating bid price) and then cancelling such transactions. Thus, a suspicion was raised that secur
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Jan 25, 2023
- FSC Announces Measures to Improve Foreign Investors' Access to Korean Capital Markets
- The FSC announced on January 25 a set of measures intended to improve foreign investors access to Korean capital markets by seeking bold improvements of the regulations that have been impediments to global investors investments in Korean markets. The measures include (a) abolishing the foreign investor registration requirement, (b) facilitating the use of omnibus account for foreign investors, (c) enabling more convenient OTC transactions by foreign investors and (d) expanding English disclosures in phases. Authorities expect that these measures will enhance the investment environment for foreigners on a par with international standards, which will provide important grounds to boost foreign investment in Korean markets. Background The foreign investor registration system and the constraints on foreign investors OTC (over-the-counter) transactions were introduced in 1992 when authorities began to allow foreign investors to invest in locally-listed stocks. While permitting foreigners to invest in locally-listed stocks, authorities established the total foreign investment cap and individual foreign investor cap of 10 percent and 3 percent, respectively, for each investment item, and began to require prior registration for foreign investors as well as to restrict their OTC transactions to monitor their observance. With the abolishment of foreign investors stock holding limit for ordinary companies in 1998, there currently exist foreign investors stock holding limits placed on only 33 items in key industries among 2,500 listed companies. However, the foreign investor registration system has continued to exist for the past three decades without a significant change. In addition, authorities introduced omnibus account for foreign investors in 2017 to provide a convenient way to invest in Korean markets, but it has not been utilized ever since its inception. The availability of English disclosures, which serve as essential information for foreign investors decisions on inve
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Jan 19, 2023
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Jan 12, 2023
- Authorities Hold Meeting to Monitor Financial Market Situation and Discuss Stabilization Measures
- FSC Vice Chairman Kim So-young presided over a meeting with the Financial Supervisory Service and policy financial institutions on January 12 to check the corporate bond and CP (commercial paper) market situations and discuss the effects of market stabilization measures currently in place as well as the support plan for 2023. At todays meeting, participants shared a common assessment that the corporate bond and CP market conditions have been improving recently as interest rates on corporate bonds and CPs are continuing to decline, and in particular, as the level of purchase demand surpassed the volume of newly issued higher-grade corporate bonds and CPs.Also, in order to ensure that recent market movement toward stability can become sturdier, authorities agreed on the need to maintain active implementation of the market stabilization programs, and shared a common view on the need to boost the effectiveness of support on higher-grade corporate bonds and CPs and strengthen support for non-higher-grade corporate bonds and CPs, so that the movement toward stability can spread to non-higher-grade corporate bonds and CPs as well. The market stabilization programs introduced last year still have a total of KRW40 trillion or more in their support capacity, and thus, authorities will continue to actively put them into use going forward. a) The bond market stabilization fund currently has about KRW6.4 trillion in its remaining capacity (additional capital call of KRW9 trillion possible), and it will continue to reinforce market demand for higher-grade corporate bonds, while authorities consider an expansion of both the target and the size of purchase. b) The corporate bond and CP purchase program run by the Korea Development Bank (KDB) and Industrial Bank of Korea (IBK) currently has about KRW7.6 trillion in its remaining capacity, and it will continue to actively operate to purchase corporate bonds and CPs with a focus on non-higher-grade ones. c) The P-CBO (primary collater
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Jan 12, 2023
- Household Loans, 2022
- The outstanding balance of household loansacross all financial sectors dropped KRW8.7 trillion in 2022, declining for the first time since relevant statistics became available in 2015.Household loans in December 2022 fell KRW3.4 trillion, showing a continuing trend of a slowdown.Financial authorities will work to seamlessly implement the normalization of loan regulations, while continuing to stably managehousehold debt. Household Loan Trend in 2022 (Overall) Household loans across all financial sectors dropped KRW8.7 trillion in 2022. The growth rate (down 0.5 percent, y-o-y) fell for the first time since relevant statistics began to be collected in 2015. (By Type) Mortgage loans grew at a slower rate and the balance of other types of loans edged down, which led to the overall drop in household loans in 2022. - (Mortgage Loans) Mortgage loans grew KRW27.0 trillion in 2022, led by group lending for new apartment subscription and jeonse loans, but the pace of growth decelerated compared to the previous year (up KRW69.2 trillion). - (Other Types of Loans) Other types of loans fell KRW35.6 trillion in 2022, due to drops in credit loans and non-housing collateral loans. The increase of KRW38.3 trillion in the previous year turned to a decline. (By Sector) Household loans in both the banking and nonbanking sectors dropped compared to the end of last year. - (Banking Sector) Banks saw a drop of KRW2.7 trillion in household loans in 2022. Mortgage loans from banks grew KRW20.0 trillion, led by group lending for new apartment subscription (up KRW9.4 trillion) and jeonse loans (up KRW8.4 trillion),but edged lower compared to the previous year (up KRW56.9 trillion). Other types of loans from banks fell KRW22.8 trillion, as credit loans edged down KRW18.8 trillion, switching to a decline from the growth of KRW14.7 trillion last year. - (Nonbanking Sector) In 2022, nonbanks saw a drop of KRW5.9 trillion in household loans with increases in insurance companies (up KRW3.7 trillion
