Press Releases - Financial Services Commission

Press Releases

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Sep 29, 2025

Credit Recovery Support Available from Today for Up to 3.7 Million Individuals and Individual Business Owners

The Financial Services Commission announced that the financial sector will make available credit recovery support in the form of expungement of overdue debt history from September 30. The credit recovery support is a one-off support program intended to help a quick recovery and return to normal economic activities for delinquent debtors who will have fully paid off their overdue debts by the end of December 2025. Individuals and individual business owners who have accrued overdue debts of up to KRW50 million (between January 2020 and August 2025) but have or will have fully paid off their overdue debts by the end of December 2025 will be eligible to receive this credit recovery support. About 2.95 million individuals and 748,000 individual business owners are expected to be eligible. As of the end of August 2025, about 2.45 million individuals (83%) and 128,000 individual business owners (17%) were found to have already paid off their debts in full. Some of the borrowers who had been excluded from previous credit recovery support (in 2021 and 2024) will be eligible to receive support this time (about 773,000 individuals and 399,000 individual business owners). Eligibility check is available from the websites of credit rating service providers. By checking eligibility, eligible debtors will automatically receive support without the need to submit application and their credit scores will automatically go up. As such, the credit recovery support is made available immediately from today for some 2.57 million debtors who have fully paid off their overdue debts. The rest (1.12 million) can also receive support upon fully paying off their overdue debts by the end of this year. The availability of credit recovery support will help to increase credit scores for both individuals (by about 40 points on average) and individual business owners (by about 31 points on average). Alongside the provision of credit recovery support, the FSC also plans to newly make available a long-te
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Sep 25, 2025

Capital Market Rule Change Proposed to Strengthen Treasury Stock Disclosure by Listed Companies

The Financial Services Commission issued a preliminary notice of rule changes regarding the Enforcement Decree of the Financial Investment Services and Capital Markets Act (FSCMA) and subordinate regulations on September 25. The proposed rule changes are intended to strengthen the disclosure duty of listed companies with regard to their acquisition and disposal of treasury stocks to promote the use of treasury stocks for the purpose of enhancing shareholder value. The revision proposal will enter a 40-day public comment period from September 26 to November 5. In 2024, a relevant rule change was made requiring listed companies to disclose their treasury stock holding status and future plan when the proportion of treasury stock holding is five percent or more of the total volume of stocks issued. Since then, the volume of treasury stocks being acquired or cancelled has increased significantly. In 2025, the volume of treasury stocks that have been cancelled in the January-August period (KRW18.8 trillion) has already surpassed the level (KRW13.9 trillion) seen in the twelve-month period a year ago. However, additional rule changes are deemed to be necessary as some listed companies fail to indicate their treasury stock holding status or merely resort to perfunctory reporting practices. Thus, the proposed rule changes will strengthen relevant rules on the disclosure of treasury stocks and establish a regulatory ground to impose aggravated penalties for recurrent rule-breaking to help promote the use of treasury stocks for the purpose of enhancing shareholder value for ordinary shareholders. Key Revision Details First, when the proportion of treasury stock holding is one percent or more of the total volume of stocks issued, listed companies will be required to disclose their treasury stock holding status and future plan twice a year. Under the current rules, the minimum threshold is set at five percent of the total volume of stocks issued, and companies are subject to the
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Sep 23, 2025

FSC Holds Meeting on Strengthening Capacity and Resilience against Cyberattacks in Financial Sector

Vice Chairman Kwon Dae-young of the Financial Services Commission presided over a meeting with chief information security officers (CISOs) of financial companies representing all financial sectors to have discussions on ways to strengthen the capacity and resilience against cyberattacks in the financial sector on September 23. Todays meeting was held in the wake of recent cyber breaches targeted at the financial sector with the purpose of raising alertness and boosting response capabilities. A Summary of Vice Chairmans Opening Remarks The government and financial companies need to reassess the critical nature of cyber and information security in the financial sector to make it a top priority. First, in order to prevent cyber breaches targeting financial companies, which can inflict significant damages to consumers, the duty of ensuring information security and protection of customer data should be considered as a key management priority of financial companies under the responsibility and leadership of chief executives. In this regard, financial companies will need to step up efforts to strengthen the capacity and resilience against cyberattacks commensurate with the external growth shown in the financial sector. Second, financial companies should take proactive steps and go the extra mile to tightly inspect and operate their own cybersecurity systems and protocols. From the stage of designing and developing services and products, financial companies need to give top consideration for information security to ensure system stability and the establishment of a well-functioning cybersecurity system. When cyber breaches take place at financial companies due to their negligence or failure of properly operating a cybersecurity system, financial companies will be subject to strict investigation and sanctions. Third, as an essential element for preventing damages from cyberattacks and quickly resuming services thereafter, financial companies need to step up efforts to bolste
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Sep 19, 2025

FSC Holds Inaugural Meeting on Transforming Financial Industry for Productive Finance

Chairman Lee Eog-weon of the Financial Services Commission presided over the inaugural meeting on transforming the financial industry and seeking a transition toward productive finance on September 19. Todays meeting was joined by industry representatives from different regions and officials from different business sectors and sizes who shared their ideas and suggestions in collaborative efforts to seek growth in both the real economy and financial sectors. Key Measures I. Transforming Financial Industry for Productive Finance In his opening remarks, FSC Chairman Lee said that the Korean economy is currently standing at an inflection point where the role of finance is considered to be ever more critical in providing solutions to various problems, such as low growth and wealth gap, and rebooting growth in the economy. To seek a transition toward productive finance, Chairman Lee introduced plans to pursue transformation of the following three areaspolicy finance, financial business, and capital markets. (Policy Finance) Policy financial institutions will lead the channeling of capital toward high-tech and venture businesses and local economies. The KRW150 trillion National Growth Fund intended for future strategic industries and their supply chains and infrastructures will provide targeted investments. The role of policy financial institutions for providing guarantees on real estate financing will be downsized, while that for providing technology financing will be boosted. At the same time, policy financial institutions will develop region-specific financing models intended to spur growth of local economies. (Financial Business) By seeking improvements to the overall supervisory framework, specific sector-targeted transition measures will be pursued. In this regard, capital regulation in the banking and insurance sectors will be upgraded to bring them to more reasonable levels and to facilitate banks and insurance businesses to more actively supply capital to producti
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Sep 17, 2025

FSC Introduces Measures to Strengthen Management of Financial Risks Associated with Major Industrial Accidents

The Financial Services Commission introduced measures to strengthen the management of financial risks associated with major industrial accidents on September 17, which are part of the governments comprehensive plan for ensuring industrial safety announced earlier on September 15. The comprehensive plan to ensure industrial safety is aimed at providing structural solutions to the root cause of industrial accidents, and it includes financial sector measures including credit evaluation, assessment in capital markets, etc. In this regard, the FSC has prepared specific measures intended for all financial sectors, such as loans and insurance, policy financing, and disclosure and assessment in capital markets, and plans to carry out follow-up measures accordingly. As investors are becoming more interested and concerned about the risk of major industrial accidents, with the enhanced administrative and judicial measures in place, companies with a record of major industrial accident may face significant challenges in terms of their business operation and investment activities (e.g. stock prices falling). In this regard, the financial sector needs to take proactive steps to manage risks and protect investors in order to maintain the soundness. To ensure a systematic management of financial risks associated with major industrial accidents, the financial sector plans to strengthen rules over soundness management and introduce incentives for the prevention of industrial accidents. Summary of Key Measures Bank loan - Industrial accidents will be taken into account for credit evaluation purposes. - All banks will be subject to the same rules regarding the reduction and/or suspension of loan commitment (in the event of a major industrial accident). Project finance (PF) loan guarantee by Korea Housing Finance Corporation - Screening criteria to be strengthened for defective construction, safety accidents, etc. - Companies certified with outstanding safety management performance will
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Sep 10, 2025

Government Plans to Set Up National Growth Fund Worth KRW150 Trillion to Propel Economic Growth

The Financial Services Commission along with related government ministries, industry officials, and financial companies held a public conference on September 10 to seek ways to propel economic growth through the establishment and operation of National Growth Fund in the size of KRW150 trillion-plus for the next five years. At the conference, the FSC introduced plans to establish National Growth Fund and its operating strategies. Key Details of National Growth Fund (Background) The high-tech strategic industries, such as artificial intelligence (AI), biotech, and robotics, are critical industries that could serve as a game changer for the prosperity of future generations. In attempt to position themselves as the leader in global competition over high-tech industries, each country has rolled out plans to introduce significant investments and high level tariffs to gain competitive edge. From the construction of Gyeongbu Expressway, the shifting paradigm of economic development toward the heavy and chemical industries and export sectors, and the establishment of high-speed telecommunications network, the Korean economy had shown strategic determinations at major turning points in the past. However, amid low birth and aging population and deepening competition over key industries, the factors that have traditionally been driving economic growth are rapidly deteriorating recently with this years growth expectation forecast to be near zero percent. Against this backdrop, it is imperative to propel future growth prospects of the Korean economy by strategically selecting key megaprojects to support their growth in response to global competition over high-tech industries. (Purpose) National Growth Fund created in the amount of KRW150 trillion will function as a key foundation to propel Koreas economic growth through industrial restructuring. Over the next five years, KRW150 trillion worth of investments will be made in high-tech strategic industries and related ecosystems (va
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Sep 10, 2025

Household Loans, August 2025

In August 2025, the outstanding balance of household loans across all financial sectors increased KRW4.7 trillion (preliminary), rising at a faster pace compared with the previous month (up KRW2.3 trillion). (By Type) Home-backed mortgage loans increased KRW5.1 trillion, growing at a somewhat faster pace compared with the previous month (up KRW4.2 trillion). Banks (up KRW3.4 trillion up KRW3.9 trillion) and nonbanks (up KRW0.8 trillion up KRW1.3 trillion) both saw the pace of growth accelerating. Other types of loans dropped KRW0.4 trillion, declining at a slower pace compared with the previous month (down KRW1.9 trillion) as credit loans edged down at a slower pace (down KRW1.1 trillion down KRW0.3 trillion). (By Sector) In August 2025, household loans in the banking sector rose KRW4.2 trillion, growing at a faster pace compared with the previous month (up KRW2.8 trillion). Banks own mortgage loan products (up KRW2.2 trillion up KRW2.7 trillion) increased at an expanded level, while policy-based loans maintained a similar level of growth (up KRW1.2 trillion up KRW1.2 trillion). Other types of loans (down KRW0.6 trillion up KRW0.3 trillion) in the banking sector shifted back up from the decline a month ago. In the nonbanking sector, household loans grew KRW0.6 trillion, turning back up from the decline of KRW0.5 trillion in the previous month. Mutual finance businesses (up KRW0.4 trillion up KRW1.2 trillion) saw the pace of growth accelerating, while savings banks (down KRW0.3 trillion up KRW0.03 trillion) saw an increase from the decline a month ago. Insurance companies (down KRW0.4 trillion down KRW0.4 trillion) and specialized credit finance businesses (down KRW0.2 trillion down KRW0.2 trillion) maintained similar levels of decline compared with the previous month. (Assessment) In August (up KRW4.7 trillion), household loans grew at a notably slower pace compared with the same month a year ago (up KRW9.7 trillion) but expanded at a somewhat faster pace when compa
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Sep 07, 2025

Authorities Hold Meeting and Announce Additional Measures to Strengthen Household Debt Management

The Financial Services Commission held a meeting on household debt with officials from related government ministries, industry groups, and housing loan and guarantee institutions on September 7 and announced additional measures to tighten household debt management to implement the governments housing supply expansion plan. At the meeting, officials assessed that household debt growth decelerated amid the implementation of the strengthened household debt management measures (announced on June 27). However, the pace of growth expanded somewhat in August with housing prices also increasing in certain regions. In addition, officials pointed out that due to recent expectation about interest rate cuts, there exists market expectation for rising real estate prices. In this regard, officials viewed that it is necessary to introduce additional measures, while ensuring a consistent implementation of the June 27 household debt management measures. Additional Measures to Strengthen Household Debt Management Strengthen Loan-to-Value Regulation in Regulated Areas (50% 40%) The loan-to-value (LTV) ratio applied on mortgage loans for purchasing homes in the speculation regulated areas will be tightened to 40 percent from the previous level of 50 percent. This will help to contain demand for loans especially in the speculation regulated areas, while helping to improve the soundness management for both households and financial companies. Restrict Loans to Private Housing Business Entities (LTV = 0%) The loan-to-value ratio applied on mortgage loans for those registered as housing business entities (for purchasing and leasing purposes) will be set at zero percent in the Seoul metropolitan area and/or speculation regulated zones, which will help to restrict the issuance of business loans in ways that could bypass the tightened mortgage rules. However, as there are concerns about potential shortages in rental housing, exemptions may be granted for newly built housing units upon approval
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Sep 04, 2025

FSC Plans to Issue New License for Fractional Investment Trading Platform Services

The Financial Services Commission announced plans to issue new license for fractional investment trading platform services on September 4. The government has been working to establish a new licensing unit to authorize the operation of over-the-counter (OTC) trading services (distribution platforms) regarding fractional investment securities, which offer a fraction of ownership right for various underlying assets (e.g. real estate, music copyright, etc.) to multiple investors. Thus far, fractional investment trading service has been operating under the regulatory exemption program (financial regulatory sandbox). However, as the revision of the Financial Investment Services and Capital Markets Act (FSCMA) and its subordinate regulations is expected to be completed by the end of September, this will establish a legislative foundation authorizing the operation of fractional investment trading platform services. This follows the earlier capital market rule change in June authorizing the issuance (primary market) of fractional investment securities. By the end of September, necessary rule changes will have been completed for authorizing the distribution (secondary market) of fractional investment securities. As such, the issuer of fractional investment securities (e.g. a fintech business with necessary securities and investment licenses) will seek to securitize various types of underlying assets to solicit investors, and factional investment securities will be listed on trading platforms for transactions between multiple buyers and sellers. Plans for Granting New License New license will be granted to maximum two applicants Considering that the fractional investment market is still at an early stage and given the need to ensure market efficiency and investor protection through concentration of liquidity, the number of licenses granted this time will be maximum two. If the number of qualified entities is less than two, the final number of entities granted with the new lice
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Aug 28, 2025

FSC Introduces Measures to Strengthen Anti-vishing Capabilities in Financial Sector

The Financial Services Commission introduced a set of measures intended to strengthen anti-vishing capabilities in the financial sector on August 28. The measures are part of the governments comprehensive plan to root out vishing scams announced earlier on the same day. Key Measures I. Introduce Liability of Compensation and Strengthen Response Capabilities The government plans to introduce liability of compensation in legislation for the loss incurred in part or in whole resulting from a vishing scam for those entities that bear the responsibility of preventing vishing scams, such as financial companies. With the advent of AI technologies in crimes and the use of stolen personal data in highly manipulative and psychologically domineering ways, the methods used by vishing perpetrators these days show that they are advancing evermore rapidly. In this regard, practice of caution by individuals alone cannot effectively prevent damages, and that it is now time to more systematically and proactively respond to vishing scams through strengthening the responsibility of financial companies that are equipped with the needed expertise and infrastructure, such as fraud detection system (FDS). Earlier in January 2024, financial companies had adopted standards for providing compensation for loss incurred in online or mobile financial frauds on a voluntary basis. However, compensations were provided only under specific conditions (e.g. use of fraudulent passwords) on a restricted basis, which had limited impact on the overall improvement of anti-vishing efforts across the financial industry. Thus, once the liability of compensation clause is put into legislation, victims of vishing scams will be able to receive at least a certain level of compensation from financial companies even if the transfer of money which led to financial loss was carried out by the victim him/herself under duplicitous circumstances. Making financial companies liable to compensation will also provide them w
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Aug 25, 2025

Financial Authorities of Korea and Vietnam Meet to Discuss Strengthening Cooperation on Capital Markets

Vice Chairman Kwon Dae-young of the Financial Services Commission met with Vietnams Deputy Minister of Finance Nguyen Duc Chi at his office in Seoul Government Complex on August 25 as a follow-up to the bilateral summit meeting held between Korea and Vietnam on August 11, 2025. The meeting was also joined by Standing Commissioner Rhee Yunsu of the SFC (Securities and Futures Commission), a sub-commission within the FSC, Chairwoman Vu Thi Chan Phuong of Vietnams SSC (State Securities Commission), and the heads of VNX (Vietnam Exchange), HOSE (Ho Chi Minh City Stock Exchange), HNX (Hanoi Stock Exchange), and VSDC (Vietnam Securities Depository and Clearing Corporation). At the meeting, the authorities discussed ways to strengthen bilateral cooperation on capital markets. Vietnams Deputy Finance Minister Chi expressed appreciation while saying that KRX (Korea Exchange)s trading system, which was first introduced to Vietnam nine years ago but just became operational from May 5 this year, has been running stably. Based on this, the Deputy Finance Minister expressed the willingness to bolster policy support to leap forward as a highly dependable emerging market through stability in trading system and global competitiveness. In addition, SSC Chairwoman Phuong suggested the two countries to continue to work toward deepening cooperation in the areas of capital market supervision based on the upgraded trading system and virtual asset regulatory framework through sharing of policy experience and know-hows. FSC Vice Chairman Kwon congratulated Vietnams successful operation of upgraded trading infrastructure and its stock markets 25-year anniversary on July 28. Prior to that, in May this year, Vice Chairman Kwon said that the State Bank of Vietnam (SBV) issued confirmation letters permitting the Industrial Bank of Korea (IBK) and Korea Development Bank (KDB) to set up local operations in Vietnam after about six to eight years of wait. In this regard, Vice Chairman Kwon said that
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Aug 13, 2025

Household Loans, July 2025

In July 2025, the outstanding balance of household loans across all financial sectors increased KRW2.2 trillion (preliminary), rising at a significantly slower pace compared with the previous month (up KRW6.5 trillion), with the volume of growth falling to the lowest level since March this year. (By Type) Home-backed mortgage loans increased KRW4.1 trillion, growing at a slower pace compared with the previous month (up KRW6.1 trillion). Banks (up KRW5.1 trillion up KRW3.4 trillion) and nonbanks (up KRW1.1 trillion up KRW0.7 trillion) both saw the pace of growth decelerating. Other types of loans decreased KRW1.9 trillion, edging back lower from the growth of KRW0.3 trillion in the previous month as credit loans, which has shown an upward movement recently, turned back lower (up KRW0.7 trillion down KRW1.1 trillion). (By Sector) In July, household loans in the banking sector rose KRW2.8 trillion, which has fallen significantly from the growth of KRW6.2 trillion a month ago. Banks own mortgage loan products (up KRW3.8 trillion up KRW2.2 trillion) and policy-based loans (up KRW1.3 trillion up KRW1.2 trillion) both expanded at slower paces. Other types of loans (up KRW1.1 trillion down KRW0.6 trillion) in the banking sector turned back lower from the growth a month ago. In the nonbanking sector, household loans went down KRW0.6 trillion, shifting back down from the growth of KRW0.3 trillion in the previous month. Mutual finance businesses (up KRW1.2 trillion up KRW0.3 trillion) saw the pace of growth slowing, while savings banks (down KRW0.04 trillion down KRW0.3 trillion) and insurance companies (down KRW0.3 trillion down KRW0.4 trillion) saw the pace of decline expanding. Specialized credit finance businesses (down KRW0.6 trillion down KRW0.2 trillion) saw the pace of decline decelerating from the previous month. (Assessment) Household loans in July this year grew at a notably slower pace both on-month and on-year basis due to the effects of the strengthened household
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Aug 11, 2025

Credit Recovery Support Available for Delinquent Debtors Who Make Diligent Efforts to Fully Pay Off Overdue Debt

The Financial Services Commission announced a plan to make available credit recovery support in the form of expungement of overdue debt history for delinquent debtors on August 11. Individuals and individual business owners who have accrued overdue debts of up to KRW50 million (between January 2020 and August 2025) but have or will have fully paid off their overdue debts by the end of December 2025 will be eligible to receive this credit recovery support. For these individuals making diligent efforts to fully pay off their overdue debts, starting from September 30, 2025 (tentative schedule), financial companies and credit information services will suspend the practice of sharing and making use of past delinquent debt history to facilitate their prompt recovery and return to normal economic activities. Among some 3.24 million individuals and individual business owners who have accrued overdue debts worth KRW50 million or less between January 1, 2020 and June 30, 2025, as of now, there are about 2.72 million individuals who have already completed making overdue payments in full and are eligible to receive credit recovery support. The rest or the other 520,000 individuals and individual business owners can also gain eligibility if they successfully pay off overdue debts in full by December 31, 2025. With the credit recovery support in place, those making diligent efforts to pay off overdue debts in full will see a boost to their credit scores, no longer having to face disadvantages in terms of interest rate, maximum loan amount, and access to new loan. * Please refer to the attached PDF for details.
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Jul 30, 2025

FSC-FSS-KRX Launch Joint Response Team to Root Out Stock Market Manipulation

The Financial Services Commission, the Financial Supervisory Service, and the Korea Exchange launched a joint response team on stock market manipulation and held the newly created teams signboard unveiling ceremony on July 30. The joint response team is a collaborative operation of the three organizations set up at the KRX, and it aims to bolster the initial response function of KRXs market surveillance committee. Prior to the signboard unveiling event, Chairman Kwon Dae-young of the Securities and Futures Commission (SFC) held talks with the staff of the newly created team and reaffirmed the importance of stamping out unfair trading activities in capital markets. A Summary of Opening Remarks by SFC Chairman Putting an end to stock market manipulation can be seen as a start of building confidence in the market. Stock manipulation should be caught at any cost, and when detected, the violator should be subject to economic sanctions surpassing the level of unfairly gained profits, and the manipulator should not be able to engage in securities transactions or serve as an executive of a listed company. Simply put, the violator should be effectively barred from capital markets. With the establishment of a joint response team, the physical, informational, and jurisdictional separation and division previously existing between the three organizations have been effectively removed. The planned introduction of AI technology and upgrading KRXs market surveillance system to make surveillance more individual-focused rather than account-based will also help the operation of the joint response team. The financial authorities will also seek to enhance cooperation with investigative authorities to make sure that follow-up criminal investigations take place more swiftly and effectively. With regard to the recent cases involving employees of financial companies, authorities will make sure to bring severe punishment against them. At the same time, financial companies should strengthen s
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Jul 28, 2025

Authorities Propose Plans to Set Up Anti-vishing Platform Using Artificial Intelligence Analytics

The Financial Services Commission held a meeting with related authorities, private sector experts, and financial industry associations on July 28 and introduced measures to step up anti-vishing response efforts and set up a comprehensive anti-vishing platform using artificial intelligence (AI) analytics. Anti-vishing AI Platform Currently, individual financial companies are able to take appropriate anti-vishing measures on suspicious account activities based on the operation of their own fraud detection systems (FDS). However, the current response system faces hurdles in its capacity in that individual financial companies have experience with only limited numbers of prior vishing cases and carry out surveillance only based on their own analysis of scam patterns. Moreover, even when they detect an account used for vishing scam, there is no instant information sharing between financial companies, so that they lack sufficient information about the newly emerging types and patterns in vishing scams individually. This has also created significant divergence between financial companies in their anti-vishing response capacities and has not helped to speed up the process of suspending problematic accounts used in criminal activities. In this regard, the anti-vishing AI platform is a digital data infrastructure that will help the authorities to tackle these limitations in the current anti-vishing response system. The platform will gather information and data on suspicious accounts from across all financial sectors, telecom service providers, and investigative authorities and will operate two different types of information categoriesthose required for immediate sharing and those analyzed by AI. The types of information categorized as requiring immediate sharing will be instantly disseminated and shared with financial companies and related organizations to facilitate immediate suspension of account activities. This will help to quickly freeze multiple financial accounts used i
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Jul 23, 2025

FSC Approves Recovery and Resolution Plans for D-SIFIs

The Financial Services Commission announced on July 23 that it has approved the recovery plans prepared by D-SIFIs (2025) and their resolution plans drawn up by the Korea Deposit Insurance Corporation (KDIC) as recommended by the Financial Stability Board (FSB). The FSC found that the recovery and resolution plans for ten D-SIFIs selected for 2025Shinhan, KB, KEB Hana, Woori, and NongHyup financial holding companies and their banksmostly meet international standards and those prescribed under the Act on the Structural Improvement of the Financial Industry. Certain factors that came across as requiring improvement and areas identified as obstacles in the resolution process have been notified to the KDIC and SIFIs. Compared to the previous year, the recovery and resolution plans approved by the FSC this year carry tools and mechanisms enabling large financial companies to more actively prepare and respond to risk situations in advance, while allowing the resolution authority to more swiftly carry out resolution proceedings, thereby helping to ensure stability and resilience in the financial system in a more effective manner. The recovery and resolution plans are operated on a yearly basis, and the authorities plan to review and approve the recovery and resolution plans for D-SIFIs selected for 2026 in the future. * Please refer to the attached PDF for details.
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Jul 23, 2025

FSC Identifies D-SIBs and D-SIFIs for 2026

The Financial Services Commission identified five bank holding companies (BHCs) and five banks as domestic systemically important banks (D-SIBs) and domestic systemically important financial institutions (D-SIFIs) for 2026 at the 14th regular meeting held on July 23. Those selected for 2026 are same as the previous years list of selectionShinhan Financial Group, KB Financial Group, Hana Financial Group, Woori Financial Group, NH Financial Group, Shinhan Bank, Woori Bank, KB Kookmin Bank, KEB Hana Bank, and NH Bank. Those identified as D-SIBs are required to set aside an additional common equity capital of 1.0 percent. The FSC identifies D-SIBs every year in accordance with assessment criteria recommended by the Basel Committee on Banking Supervision (BCBS). Meanwhile, the FSC also identifies D-SIBs as domestic systemically important financial institutions (D-SIFIs) under the amended Act on the Structural Improvement of the Financial Industry. D-SIFIs are required to prepare and submit their own recovery plans to the Financial Supervisory Service (FSS) within three months from the day of being designated as a D-SIFI. Since the D-SIBs selected for 2026 are the same as the previous year, there will be no actual increase in capital ratio required from them. * Please refer to the attached PDF for details.
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Jul 23, 2025

Capital Market Rule Changes Proposed to Strengthen Response against Unfair Trading Activities

The Financial Services Commission issued a preliminary notice of regulatory changes on July 23 regarding the Enforcement Decree of the Financial Investment Services and Capital Markets Act (FSCMA) and subordinate rules to strengthen early response and bring more stern measures against unfair trading activities. Key Revision Details I. Establish a regulatory ground to upgrade KRXs surveillance system to make it more individually-focused (from account-based system currently) Under the current system, the KRX performs surveillance based on accountsand not based on individualsas it is not authorized to make use of investors personal information. As such, surveillance targets remain too broad and it is difficult to identify activities connected to the same entity. Thus, the revision proposal authorizes the KRXs market surveillance committeein its surveillance capacityto process investors personal data (resident registration number in pseudonymized form). Based on this, the KRX will be able to perform more individually-focused market surveillance. This transition from the current account-based to a more individual-centered approach will help to boost the efficiency in market surveillance as surveillance targets will be reduced by about 39 percent. Moreover, it will allow the authorities to more effectively and quickly find out and identify whether certain activities have been carried out by the same entity, what and how much role did the rule-breaker play in manipulating stock prices, and whether there was cross trading involved. II. Strengthen the criteria for imposing penalty surcharges and introduce aggravated sanctions criteria a) Penalty surcharge for unfair trading activities Under the current penalty surcharge standards, unfair trading activities can be subject to penalty surcharges amounting to either 50 percent to 200 percent of the amount of unfairly gained profits (for use of undisclosed material information, price manipulation, or unfair transaction) or 50 per
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Jul 22, 2025

Maximum Deposit Protection Coverage of KRW100 Million Scheduled to Take Effect from September 1

The Financial Services Commission announced that the government approved a set of legislative revision bills raising the maximum deposit protection coverage to KRW100 million from KRW50 million previously at the cabinet meeting held on July 22. The increased deposit protection coverage will take effect from September 1, 2025. Since the Depositor Protection Act was revised on January 21 this year raising the minimum deposit protection level to KRW100 million, the FSC and related ministrieshad worked on amendments to six Enforcement Decrees, which were approved at the cabinet meeting today. Therefore, starting from September 1 this year, the maximum deposit protection coverage in the case of a financial company turning insolvent will be raised to KRW100 million for banks, savings banks, insurance companies, and financial investment businesses that are covered by the Korea Deposit Insurance Corporation (KDIC) under the Depositor Protection Act. Moreover, mutual finance businessescredit unions, agricultural cooperatives, fisheries cooperatives, forestry cooperatives, and community credit cooperativesthat are covered by their own federation funds will also be subject to the increased deposit protection limit of KRW100 million. Principal-protected savings and installment savings products will be covered up to KRW100 million regardless of when the account was opened. However, investment products such as funds that are linked to the performance of fund management will not be covered. In addition, retirement pension plans, pension savings, and accident insurance payments that are handled separately within the same financial company will also be subject to the increased deposit protection coverage. Since the increase in deposit protection coverage will take effect for the first time in 24 years since 2001, it is expected that depositors will be entitled to enhanced protection of their savings and there will increased credibility over financial market stability. Moreover, cons
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Jul 09, 2025

All KOSPI-listed Firms to be Subject to Mandatory Corporate Governance Disclosure Duty from 2026

The Financial Services Commission held the 13th regular meeting on July 9 and approved a partial revision to the Korea Exchange (KRX) disclosure rules expanding the duty of mandatory disclosure of corporate governance report to all KOSPI-listed firms from 2026. In a comply or explain approach, the disclosure of corporate governance report allows businesses to open up their compliance status on key corporate governance principles. It was first introduced in 2017 as a voluntary disclosure and has moved to a mandatory disclosure system with more and more companies becoming subject to the mandatory disclosure duty. With the revision of the KRX disclosure rules, this mandatory disclosure of corporate governance report will be expanded to all KOSPI-listed companies from 2026. This will increase the number of firms being subject to the mandatory corporate governance disclosure duty from 541 now (those with total assets worth KRW500 billion or more, as of end-2024) to 842 (all KOSPI-listed firms, as of end-2024). With the expansion of corporate governance disclosure duty, it is expected that there will be more voluntary efforts taken by businesses to make improvements to their governance structures. It is also expected to help boost transparency in corporate management practices. To facilitate a seamless transition, the KRX and the Korea Listed Companies Association plan to provide support through (a) preparatory guidance, (b) one-on-one consultation, (c) on-the-job training for compliance officers and executive officers, and (d) regional information sessions and workshops. The FSC and the KRX will continue to work to ensure a seamless transition in expanding the duty of mandatory disclosure of corporate governance report. * Please refer to the attached PDF for details.
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