Press Releases - Financial Services Commission

Press Releases

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Mar 24, 2022

Availability of Government-backed Lending Support for Small Merchants Extended

The FSC announced the extended availability of the government-backed lending support programs for small merchants on March 24 in light of the six-month extension of the maturity extension and payment deferment programs for SMEs and small merchants announced a day earlier. Background The government has been providing financial supports to small merchants who are in need of emergency funds through financial support programs based on fiscal expenditure and guarantees in the amount of about KRW36.4 trillion.With the spread of the coronavirus variants weighing down on the business condition of small merchants, lending institutions in the private sector reached a final decision to provide a six-month extension on the availability of maturity extension and payment deferment yesterday.In this regard, the government-backed financial support programs for small merchants will also be extended for those scheduled to reach maturity this year. Key Details For the small merchant interest rate support program introduced on April 1, 2020 (KRW2.4 trillion in balance) and is scheduled to reach maturity beginning from April this year, a one-year maturity extension will be provided to help induce a soft-landing of payment burdens with the preferential interest rate adjusted from 1.5 percent to 2.5 percent. For the consignment guarantee program for small merchants introduced on May 25, 2020 (KRW6.6 trillion in balance), an up to one year extension of the forbearance period will be provided to help ease the burden of principal payment on loans with a grace period ending in May this year. The temporary postponement (until maturity) of insolvency proceedingsincluding debt collection granted to small merchants who are undergoing business closure but are making principal and interest payments on business loans guaranteed by the Korea Credit Guarantee Fund will be available for six more months until the end of September this year. Expectation The extended availability of the government-backed
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Mar 24, 2022

Enforcement of Travel Rule on VASPs to Take Effect from March 25

The FSC announced that the enforcement of the travel rule on virtual asset service providers (VASPs) will go into effect from March 25, 2022 pursuant to the revised Act on Reporting and Using Specified Financial Transaction Information (the Act hereinafter).The travel rule aims to prevent money laundering activities using virtual assets by requiring VASPs to provide relevant information about users sending and receiving virtual assets when they are asked to transfer virtual assets to another VASP. Travel Rule Details (Travel Rule Application) The travel rule applies when a VASP transfers virtual assets worth KRW1 million or more to another VASP upon users request. (Information Types Period) When sending a virtual asset to another VASP, the originating VASP is required to provide the names of senders and receivers as well as virtual asset addresses to the VASP at the receiving end. The originating VASP is also bound to provide the resident registration number of the sender within three business days from the time of request when requested by the commissioner of the Korea Financial Intelligence Unit (KoFIU) or the VASP at the receiving end. (Information Storage) With the enforcement of the travel rule, VASPs are obligated to keep relevant user information on senders and receivers for five years from the time of termination of transactions, or face a fine of up to KRW30 million. (Inspection Supervision) When a violation of the travel rule is found, authorities may issue a caution, warning or corrective order to a VASP depending on the outcome of the inspection and supervision, along with a disciplinary measure on its employee. Note The travel rule under the Act applies only when a transfer of virtual asset occurs between VASPs. The pre-registration system that is currently being carried out by individual VASPs for moving a virtual asset to a digital wallet is an industry-level AML measure implemented on a voluntary basis. Unlike domestic VASPs, overseas VASPs are not b
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Mar 23, 2022

Maturity Extension and Payment Deferment on Business Loans Extended for Six More Months

FSC Chairman Koh Seungbeom held a meeting with the financial industry groups and state-backed financial institutions on March 23 and made a final decision to extend the availability of loan maturity extension and payment deferment for SMEs and small merchants for six more months until the end of September 2022. Current Situation Since April 2020, the financial industry has made available maturity extensions and payment deferments to SMEs and small merchants struggling through the coronavirus pandemic. Between April 2020 and January 2022, the total volume of loans (principal and interest) under these programs amounted to KRW291.0 trillion (or 1,165,000 cases).As of the end of January 2022, the balance of loans under these programs amounted to KRW133.4 trillion (or 704,000 cases). The maturity extension and payment deferment programs have contributed to the recovery efforts of SMEs and small merchants without businesses having to worry about their payment burdens. According to a survey conducted by the Korea Federation of SMEs in January 2022, some 80 percent of SMEs have indicated that these support measures have helped them. The measures to help ease the payment burdens of businesses after the program expiresand the measures to reinforce the debt structureare also currently being implemented seamlessly. About 54 percent (or KRW9.0 trillion) of loans under the payment deferment program (principal and interest) have completed one-on-one pre-consultation with financial institutions, and about one third of them (KRW3.0 trillion) have already begun making payments on loans. Background Despite extending the availability of maturity extension and payment deferment programs three times over the past two years,SMEs and small merchants are continuing to experience difficulties due to the spread of the coronavirus variants. In its decision to pass the supplementary budget on February 21, 2022, the National Assembly made an additional bipartisan comment to seek an additional ex
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Mar 21, 2022

2022 Global Money Week Held on March 21-27

The FSC announced that this years Global Money Week (GMW)will be held online from March 21 to 27 with aims to raise awareness on financial education. The GMW will feature a seminar on promoting financial education and offer both specific needs-based and participatory learning programs tailored to the needs of different age groups. * The Global Money Week is a financial education campaign launched by the OECD since 2012 and is held by member countries on a voluntary basis during the fourth week of March every year. Under the theme of Build your future, be smart about money, this years GMW will kick off with a seminar looking at the current situation with financial education and discussions on strengthening financial consumer protection and promoting financial education at schools. Moreover, both tailored and participatory learning programs will be available for different age groups from children to teenagers to workers to seniors to enable easy access to financial education for diverse types of consumers and allow them to gain proper knowledge and attitude on finance. During the opening session, FSC Vice Chairman Doh Kyu-sang delivered congratulatory remarks as summarized below. Vice Chairmans Remarks (Importance of Financial Education) The official theme of this years Global Money Week is Build your future, be smart about money. From gaining an understanding about the concept of money during our childhood to managing our assets and pension for retirement, finance is closely knitted to our daily lives throughout our lifetime. The changes taking place in finance and social structure also highlight the significance of financial education. As financial instruments are structured in more complicated ways and increasing life expectancy necessitates individuals to prepare for life after retirement, financial education should be available to help individuals to boost their financial capacity and prepare for future. (Financial Education Policy) In the aftermath of the global
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Mar 18, 2022

Government Prepares Measures to Address Cross-border Payment Issues amid Russia Sanctions

The FSC announced on March 18 that the government and the banking industry have prepared measures to facilitate cross-border payments of businesses and help provide financing support to the families of expats living in Korea due to the impact of financial sanctions on Russia. An emergency financial call center operated by the Financial Supervisory Service (FSS) received a total of 123 cases of inquiry as of March 17 and the payment issues for both companies and individuals were found to be the most prevalent topic of inquiry. After reviewing these issues, authorities found cases where delays or denials in payment transactions occurred even when dealing with a bank or an item not on the sanctions list as overseas intermediary banks avoid handling transactions related to Russia. Due to Russia placing its own sanctions, inbound wire transfers from Russia to Korea have become restricted, creating complications for expats to send money back home. Key Measures (Support for Speedy Payment Process) The government plans to help set up a provisional payment arrangement using Korean banks local subsidiaries (KEB Hana, Woori)in Russia, thereby minimizing contact with intermediaries. When a local subsidiary conducts a payment transaction, it will first make a deposit to its own account at a headquarter office located in Korea and then the trade payments will be offset from this deposit, thereby minimizing the burden of going through intermediary banks and speeding up the process. However, this payment arrangement is valid only for transactions with non-sanctioned banks and/or items and the non-trade-related payments between individuals are not subject to this arrangement. It needs to be noted that a further tightening of sanctions may bring a halt to this payment arrangement as well. The financial authorities and the banking sector are expected to introduce this provisional payment arrangement at the end of March after reviewing relevant laws and preparing the system. (Financing
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Mar 14, 2022

Special Guarantee Available for Businesses Affected by Ukraine Crisis

The FSC and the Ministry of SMEs and Startups announced that new special guarantee programs will be made available from March 15 for small and medium-sized enterprises experiencing liquidity crunch due to the Ukraine conflict. The Korea Credit Guarantee Fund and the Korea Technology Finance Corporation will provide special credit guarantees to Korean firms doing business in the conflict areas (countries that are subject to the export ban or financial sanctions) and the suppliers and subcontractors in partnership with the former. Special guarantees will be issued for up to half of the sales amount of an affected business depending on assessments of individual firms. The guarantee coverage ratio for special guarantees (95%) will be 10 percentage points higher than ordinary guarantee coverage ratio (85%) and the guarantee fee concession of 0.3 percentage points to up to 0.8 percentage pointswill be provided. A one-year maturity extension is also offered on existing guarantees to help relieve payment burdens of affected businesses. * Please refer to the attached PDF for details.
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Mar 10, 2022

Household Loans, February 2022

The outstanding balance of household loansacross all financial sectors dropped KRW0.2 trillion from the previous month at the end of February 2022 (up 5.6% y-o-y), showing a continuous slowdown from the second half of 2021. Both the banking and nonbanking sectors saw the balance of loans falling KRW0.1 trillion each in the household sector. * All financial sectors (y-o-y): +8.6% (Oct 2021)+7.7% (Nov)+7.1% (Dec)+6.3% (Jan 2022)+5.6% (Feb) By type, mortgage loans rose KRW2.6 trillion in February, showing a steady decline in the pace of the growth compared to the previous month (up KRW2.9 trillion). Other types of loans including credit loans fell KRW2.9 trillion,declining steadily since December 2021. In the banking sector, mortgage loans rose KRW1.8 trillion but other types of loans including credit loans fell KRW1.9 trillion. The balance of household loans in February shows a steady decline from the previous month. Mortgage loan is growing at a slower rate and credit loan has fallen continuously due to the household debt control measures put in place and a drop in housing transactions. The financial authorities will continue to make efforts to stably manage the growth of household debt. * Please refer to the attached PDF for details.
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Mar 07, 2022

Revised Guidelines on Corporate Governance Disclosure to Strengthen Shareholder Protection

The FSC introduced revisions to the guidelines on corporate governance disclosure for listed companies which aim to strengthen shareholder protections beginning from the end of May regulatory filing this year. Background Corporate governance disclosure was introduced on listed companies in March 2017 to encourage companies to voluntarily self-disclose their compliance with the core principles of corporate governance or to provide explanations in case of non-compliance, thereby promoting more transparency in corporate management. Corporate governance disclosure filing was voluntary when first introduced in March 2017. Afterwards, in accordance to the plan for a gradual expansion of application, it became mandatory in 2019 for KOSPI-listed firms holding total asset of KRW2 trillion or more. Starting from 2022, the mandatory filing has been expanded to KOSPI-listed firms with total asset of KRW1 trillion or more and the total number of companies this year that will be subject to the mandatory filing of corporate governance disclosure is expected to increase to 265 entities. The corporate governance disclosure system has made contributions to boosting management transparency of listed firms. As more entities will become subject to the mandatory filing from this year, the authorities are introducing the following revisions to improve the guidelines on corporate governance disclosure. Key Details I. Establish a Rule on Shareholder Protection in Business Split Off A split off is a divestment method where a parent company carves out a part of its business and creates a subsidiary which is then wholly owned by the parent company. As few companies have recently split off their business and went ahead with IPO of new subsidiaries, the issue has become contentious. Those in favor argue that IPO of a new subsidiary after a split off is inevitable to ensure the growth of a new business sector as doing so allows large scale fundraising without a concern for diluting shares of the
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Mar 04, 2022

Government Makes Available KRW2 Trillion Business Lending Support amid Ukraine Crisis

The FSC announced that the government has decided to make available KRW2 trillion in emergency lending support for Korean businesses hit by the ongoing Ukraine crisis during a taskforce meeting held on March 4. The emergency lending support program for SMEs and middle market enterprises will be in the form of liquidity provision of KRW2 trillion in total and maturity extension on existing loans. The Korea Development Bank (KRW800 billion), Industrial Bank of Korea (KRW700 billion) and Export-Import Bank of Korea (KRW500 billion) will each make new business loans available with preferential lending rates ranging from 40 to 100 basis points depending on lenders and their programs. In addition, a special loan forbearance will be provided for one year on existing loans and guarantees issued by state-backed financial institutions. Eligible entities include (a) businesses that have set up a branch office or a factory in Ukraine or Russia (the conflict area) and (b) exporters and importers that have transaction records to and from the conflict area between January 2021 and now or are expecting such transactions and (c) suppliers and subcontractors linked to the aforementioned entities. The emergency business lending support is available from March 4, 2022. The government will continue to closely monitor situation in Ukraine and be prepared for any ripple effects on the Korean economy. As the conflict situation in Ukraine is unfolding rapidly, the authorities will closely check the scale of damages and impact on various sectors and consider increasing the level of assistance and expanding the eligibility of support when deemed necessary. * Please refer to the attached PDF for details.
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Mar 03, 2022

FSC Holds Meeting on Promoting Further Growth of Financial MyData Services

FSC Chairman Koh Seungbeom held a meeting with financial MyData service providers, market experts and other relevant institutions on March 3 to discuss ways to promote further growth of the financial MyData industry. During the meeting, participants discussed diverse issues ranging from creating a fairer market place for service providers to ensuring consumers right to choose to strengthening measures for financial data security to making changes to the current regulatory framework. The following is a summary of Chairman Kohs keynote address. Chairmans remarks Since the first launch of the API-based MyData services in the financial sector about two months ago,public use of financial MyData services has become widespread with more than 12.5 billion cases of data transfer performed by 39 service providers (as of Feb. 21, 2022) and some 18.4 million individuals signing up for financial MyData services in aggregate terms. (Significance) In a society characterized as hyperconnectivity, hyperconvergence and hyperindividualism where barriers are crumbling down between diverse sectors and industries and different technologies and industries are being linked together, data is often considered as an essential facility. In a data-driven economy, financial MyData service was introduced for the first time in the world with an aim of guaranteeing data privacy rights of financial consumers and of enabling an integrated search of personal financial data scattered across all financial sectors. The API-based financial MyData services brought about many benefits. First, MyData services allow data subjects to use their own data according to their individual needs and make the use of private banking services easily accessible to ordinary consumers. Second, MyData services enable users to find and manage their financial data more quickly and safely. Third, MyData services provide a more level playing field for anyone with innovative business ideas. Competition and innovation in the finan
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Mar 02, 2022

FSC Changes Rules to Promote Overseas Business Expansion of Financial Institutions

The FSC approved a set of regulatory revisions that will help facilitate financial institutions overseas business operation and investment activities at the 4th regular meeting held on March 2. The measures are aimed at promoting financial institutions overseas business expansion by easing some of the reporting and filing duties when investing overseas through a foreign direct investment (FDI) or a branch office. Key Revisions a) FDIs made through offshore funds in the amount of up to USD20 million annually will be exempted from the advance reporting requirement. Previously, FDIs through foreign funds were subject to the advance reporting requirement regardless of the investment amount. This rule will be changed to allow ex post factor reporting within one month for FDIs of USD20 million or less. b) Financial companies investing in equity shares of foreign funds (10 percent or more) will no longer be required to file a report whenever their shareholding status changes due to changes in investments made by other shareholders. Financial companies will be exempted from reporting any change in their ownership status after making initial investment when there is no change to be reported in the actual amount of their investment. c) Some of the ordinary business operations by offshore branch offices, such as real estate and stock trading and loan transactions lasting longer than a year, will no longer be subject to the advance reporting requirement. The revised rule will allow financial companies to report these activities afterwards within one month from such events taking place. The revised rules will become effective from March 3, 2022. * Please refer to the attached PDF for details.
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Mar 02, 2022

KoFIU Unveils 1st Comprehensive Survey Result on Domestic Virtual Asset Market

The Korea Financial Intelligence Unit (KoFIU) has conducted its first comprehensive survey on 29 virtual asset service providers to have better understanding of the market based on the statistical data provided by individual business operators. Overview As of the end of 2021, the total market capitalization of the virtual asset market in Korea stood at KRW55.2 trillion with the average daily transaction volume amounting to KRW11.3 trillion. As of the end of December 2021, a total of 29 virtual asset service providers (4 KRW-based exchange platforms, 20 coin-only exchange platforms and 5 crypto wallet or depository service providers) were given an approval to operate their business according to the Act on Reporting and Using Specified Financial Transaction Information.Among them, the 5 wallet or depository service providers have been excluded from this survey as they were found to be at an early stage of business operation, thus offering no statistically significant data to the survey. The following are key findings from the survey which include key statistical data about the market size, number of virtual assets being traded, user characteristics, etc. Key Findings I. Virtual asset exchange platforms (Trade volume) In the second half of 2021, the total transaction amount at 24 virtual asset exchanges amounted to KRW2.073 quadrillion with the average daily transaction amount of KRW11.3 trillion. At the end of December 2021, the total market capitalization of virtual assets being traded by 24 crypto exchanges stood that KRW55.2 trillion. The KRW-based exchange markets average daily trading amountwas KRW10.7 trillion (or about 95%) whereas that for the coin exchange market was about KRW0.6 trillion (5%). (Transaction fee) The average transaction fee being charged at a virtual asset exchange was 0.17 percent, which is relatively high in comparison to stock trading fees. Depending on individual platforms, the transaction fee rate ranged from a minimum of 0.05 percent to
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Feb 25, 2022

Authorities Hold Meeting to Check Financial Market Conditions in wake of Ukraine Crisis

FSC Chairman Koh Seungbeom convened a meeting with officials from the FSS and Korea Center for International Finance on the morning of February 25 to check financial market conditions amid heightened uncertainties surrounding the deteriorating conflict situation in Ukraine. Chairman Koh said that market uncertainties have grown with stock markets at home and abroad reacting to rapidly changing situation in Ukraine. As it is possible that the Ukraine crisis may go on for a long time, Chairman Koh stressed the importance of timely detection of any ripple effects on the financial market and swift response especially with the looming tapering move around the world. In this regard, Chairman Koh urged officials to keep in close contact with overseas offices to ensure a real time exchange and sharing of information. Moreover, Chairman Koh stated that the authorities will closely look into the scale of damages and financial situations of Korean companies being affected by the Ukraine crisis and work to make available emergency financial assistance program of up to KRW2 trillion(subject to change depending on situations)to help support their financing needs when it becomes necessary. * Please refer to the attached PDF for details.
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Feb 24, 2022

Authorities Introduce Guidelines for Developing Senior Friendly Mobile Bank Applications

The FSC and the FSS along with the banking industry introduced a set of guidelines that will help make mobile bank applications more senior friendly amid a rapid transition to digital finance and a rise in the number of the elderly using mobile bank applications.The guidelines contain thirteen key principles categorized into three issue areas as shown below. I. Senior user mode accessibility a) Provide a senior user mode to increase usability by the elderly b) Minimize steps for arriving at the senior user mode c) Allow users to freely choose the senior user mode d) Minimize altering key functions and keep consistency and continuity II. User convenience a) Make the structure and design consistent to boost user convenience b) Provide easy-to-understand contents c) Provide key functions that are most frequently used by the elderly d) Allow elderly users to easily understand the progress of their services e) Provide sufficient time and explanation to elderly users at each stage f) Refrain from providing too much information at once III. Other issues a) Provide learning contents to facilitate use by the elderly b) Set up safeguards to prevent financial frauds targeting elderly users c) Make continuous efforts to bring about improvements to the senior user mode Expectation Schedule As the guidelines have been prepared after a sufficient review and discussions within the banking industry, it is expected that practical improvements will be made to the mobile bank applications. Following the guidelines, banks are expected to introduce updated versions of their mobile applications by the first half of 2023. The authorities plan to introduce the same level of guidelines in other financial sectors after taking feedback from banks. The guidelines will also be provided to financial education providers to be used as educational material for the elderly digital finance users. * Please refer to the attached PDF for details.
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Feb 23, 2022

FSC Chairman Holds Meeting to Discuss Ways to Improve Deposit Insurance Scheme

FSC Chairman Koh Seungbeom held a meeting with the president of the Korea Deposit Insurance Corporation (KDIC), financial industry group leaders and other market experts on February 23 and discussed ways to make improvements to the deposit insurance system. The following is a summary of Chairman Kohs remarks. Chairmans Remarks (Importance of Deposit Insurance for Financial Stability) The deposit insurance system has been a mainstay of our recovery efforts in times of financial crisis situations. Starting from this year, in order to minimize systemic market disorder that may result from large financial companies turning insolvent, the KDIC is overseeing their resolution plans for approval from the FSC when systemically important financial institutions (SIFIs) are unable to recover on their own.Recently, financial imbalances have become more problematic around the world and there are growing concerns about potential risks turning into a reality. As such, the role of the KDIC is becoming ever more integral in providing financial safety net. Timely detection of market risks, prevention of financial companies going bankrupt and stronger cooperation and coordination with relevant institutions should take place. As systemic risk may find us before we find it, the KDIC should have support measures ready to be prepared for market instability. (Need to Make Improvements to Deposit Insurance System) The deposit insurance system needs to be updated and improved in line with the changes taking place in the financial industry. Rapid growth of the nonbanking sector and the convergence between finance and information technology have led to the emergence of new financial services. The expanded availability of short-term money market instruments, such as repurchase agreement (repo) and asset-backed commercial paper (ABCP), and the emergence of electronic prepaid payment mechanisms may weaken the crisis response function of the traditional deposit insurance institution. In addition, d
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Feb 22, 2022

11th Korea-Denmark Green Growth Alliance Meeting Discusses Role of Finance for Carbon Neutrality

The FSC announced that the 11th Korea-Denmark Green Growth Alliance Meeting was held in Seoul on February 22 where government officials, financial institutions and other private sector participants from both countries discussed the role of finance in seeking carbon neutrality.Todays meeting was the first such event between the two countries since the bilateral summit held on the sideline of the 2021 P4G Seoul Summit. FSC Chairman Koh Seungbeom delivered welcoming remarks at the beginning of the event emphasizing the critical role of financial sectors in responding to the climate crisis. In this regard, Chairman Koh said that the Korean government plans to continue to expand support for carbon neutrality and gradually mandate disclosure of sustainable management reports. In order to ensure stability in the financial system and preemptively tackle climate risks that may arise from the process of seeking carbon neutrality, Chairman Koh stated that the Korean authorities are planning to introduce climate stress tests and will help establish a climate risk management system in the financial sector. The meeting consisted of four discussion sessions including (a) how governments can unlock private investments in climate solutions, (b) financial potential in de-carbonizing the hard-to-decarbonize sectors, (c) attracting investors to clean energy projects (lessons learned) and (d) ways to contribute to carbon neutrality in the financial sector. As it was the first time the two countries held a meeting after their relationship was elevated last year to a comprehensive green strategic partnership, it is expected that Koreas bilateral cooperation with Denmark will be strengthened in the climate change and environment sectors. * Please refer to the attached PDF for details.
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Feb 22, 2022

Improvements to IPO Lockup Rules to be Introduced

The FSC announced a plan to improve the IPO lockup rules which will require a minimum six-month lockup period on all insider holdings (company board members, etc.) and introduce a staggered lockup contracts system. Key Details The IPO lockup rules under the listing regulation of the Korea Exchange are aimed at prohibiting sale of newly listed companies stocks owned by company insiders for a certain period of time (usually six months) to protect investors from price volatility that may arise from a large scale stock sellout and to promote fair price discovery. Under the current rules, the IPO lockup rules apply only to the shares acquired through stock options prior to IPO but not the shares acquired via exercising stock options after company has gone public. As such, the applicability of the lockup rules depends on the timing of exercising ones stock options (either pre-IPO or post-IPO) and there is a regulatory loophole for those intentionally choosing to acquire company stocks after IPO. To help close this loophole, the IPO lockup rules will be changed to apply to all insider holdings regardless of the timing of exercising their stock options. Moreover, most newly listed firms have shown tendency of requiring a six-month lockup period on all insider holdings that are subject to the lockup rules even though the six-month holding period stipulated by the current regulation is the minimum requirement. This raises concern over the possibility of concentration of sell orders immediately after the end of the six-month period which may have impact on price volatility. To help address this problem, the authorities will work to introduce a staggered lockup contracts system through which newly listed companies may require different lockup periods (initial six months plus up to two years) on different stakeholders (CEO, board members, etc.) on a voluntary basis. Information about stakeholders subject to the lockup rules, their shareholding status and lockup periods will be d
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Feb 21, 2022

FSC Chairman Discusses Ways to Make Further Improvements to Accounting Industry

FSC Chairman Koh Seungbeom held a meeting with the heads of major accounting firms and other industry representatives virtually on February 21 and discussed the effects of the 2017 accounting reforms and the governments efforts to further improve the accounting and auditing practices. The following is a summary of Chairman Kohs opening remarks. Since the 2017 revision of the Act on External Audit of Stock Companies,the accounting industry in Korea has continued to grow with the number of certified public accountants and accounting firms rising some 20 percent and the sectors sales earnings also growing about 46 percent compared to 2017. Despite this quantitative growth shown by the accounting industry, there are still concerns about the issue of accounting transparency where inappropriate actions from a few listed firms may erode public trust built over the years. Moreover, some of the SMEs may be undergoing hardships in catching up with the accounting reforms, and the audit quality of certain accounting firms has been found to be below market expectations. Against this backdrop, the government will make efforts this year to promote qualitative growth of the accounting industry. First, the authorities will actively seek improvements to the audit quality of accounting firms through performance-based incentives and inducements for self-improvements. Second, the authorities will strengthen efforts to ensure seamless enforcement of the best practice guideline on the designation of external auditor by facilitating communication between companies and auditors and preventing the possibility of conflicts. Third, the authorities will work to ease auditing burdens of SMEs in the process of applying the current accounting and auditing standards. Fourth, the authorities will work to promote the environmental, social and governance (ESG) standards as sustainable business management is a key issue handled by the accounting sector. With the International Sustainability Standards B
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Feb 16, 2022

Korea Accounting Standards Board Reappointed as Member of Accounting Standards Advisory Forum

The FSC announced that the Korea Accounting Standards Board (KASB) has been reappointed by the International Financial Reporting Standards (IFRS) Foundation on February 15 to serve as a member of the Accounting Standards Advisory Forum (ASAF). Koreas membership to the ASAF from March 2022 to December 2024 follows its first three-year appointment between 2018 and 2021. The KASBs membership to the ASAF enables Korea to effectively convey opinions of domestic stakeholders to the International Accounting Standards Board (IASB), which is an independent accounting standard-setting body of the IFRS Foundation. The KASBs reappointment to the ASAF membership underscores a proven record of its contribution to the IFRS Foundation as well as its expertise in the process of establishing and revising international accounting standards. The government and the KASB will continue to effectively convey opinions of various domestic stakeholders to help promote Koreas position in setting international accounting standards. * Please refer to the attached PDF for details.
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Feb 15, 2022

Government Appoints KIC Chief as Honorary Ambassador for Financial Cooperation

The government announced the appointment of Jin Seung-ho, chairman and CEO of the Korea Investment Corporation, as the countrys honorary ambassador for financial cooperation on February 15. The honorary ambassador for financial cooperation will help promote Koreas financial markets to foreign investors and work to draw overseas financial companies to establish businesses here in Korea according to the 5th three-year plan for Koreas financial hub policy announced by the FSC in May 2020. Mr. Jin Seung-ho is an expert in international finance and has previously served in key positions at the Ministry of Economy and Finance. The new honorary ambassadors one-year term will begin after an official approval from the President. * Please refer to the attached PDF for details.
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