Financial stability is a prerequisite to innovation and inclusive finance policies. FSC maintains close market monitoring for any signs of market volatility and works to ensure stability in the financial markets. There are risk factors originating from abroad and from within. FSC focuses on making our economy more resilient from external shocks, such as a disruption in the global supply chain, and supporting Korea’s material, component and equipment industries to help boost their global competitiveness. Internally, FSC is closely monitoring the trends in household debt and seeking reforms to corporate restructuring in order to prevent domestic risk factors from turning into systemic risks. Policies aimed at increasing financial stability also include enhancing fairness in the financial markets by introducing a comprehensive legal framework for the supervision of financial conglomerates, improving market discipline and promoting transparency in corporate disclosure and accounting practices.
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Sep 17, 2025
- FSC Introduces Measures to Strengthen Management of Financial Risks Associated with Major Industrial Accidents
- The Financial Services Commission introduced measures to strengthen the management of financial risks associated with major industrial accidents on September 17, which are part of the governments comprehensive plan for ensuring industrial safety announced earlier on September 15. The comprehensive plan to ensure industrial safety is aimed at providing structural solutions to the root cause of industrial accidents, and it includes financial sector measures including credit evaluation, assessment in capital markets, etc. In this regard, the FSC has prepared specific measures intended for all financial sectors, such as loans and insurance, policy financing, and disclosure and assessment in capital markets, and plans to carry out follow-up measures accordingly. As investors are becoming more interested and concerned about the risk of major industrial accidents, with the enhanced administrative and judicial measures in place, companies with a record of major industrial accident may face significant challenges in terms of their business operation and investment activities (e.g. stock prices falling). In this regard, the financial sector needs to take proactive steps to manage risks and protect investors in order to maintain the soundness. To ensure a systematic management of financial risks associated with major industrial accidents, the financial sector plans to strengthen rules over soundness management and introduce incentives for the prevention of industrial accidents. Summary of Key Measures Bank loan - Industrial accidents will be taken into account for credit evaluation purposes. - All banks will be subject to the same rules regarding the reduction and/or suspension of loan commitment (in the event of a major industrial accident). Project finance (PF) loan guarantee by Korea Housing Finance Corporation - Screening criteria to be strengthened for defective construction, safety accidents, etc. - Companies certified with outstanding safety management performance will
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Sep 07, 2025
- Authorities Hold Meeting and Announce Additional Measures to Strengthen Household Debt Management
- The Financial Services Commission held a meeting on household debt with officials from related government ministries, industry groups, and housing loan and guarantee institutions on September 7 and announced additional measures to tighten household debt management to implement the governments housing supply expansion plan. At the meeting, officials assessed that household debt growth decelerated amid the implementation of the strengthened household debt management measures (announced on June 27). However, the pace of growth expanded somewhat in August with housing prices also increasing in certain regions. In addition, officials pointed out that due to recent expectation about interest rate cuts, there exists market expectation for rising real estate prices. In this regard, officials viewed that it is necessary to introduce additional measures, while ensuring a consistent implementation of the June 27 household debt management measures. Additional Measures to Strengthen Household Debt Management Strengthen Loan-to-Value Regulation in Regulated Areas (50% 40%) The loan-to-value (LTV) ratio applied on mortgage loans for purchasing homes in the speculation regulated areas will be tightened to 40 percent from the previous level of 50 percent. This will help to contain demand for loans especially in the speculation regulated areas, while helping to improve the soundness management for both households and financial companies. Restrict Loans to Private Housing Business Entities (LTV = 0%) The loan-to-value ratio applied on mortgage loans for those registered as housing business entities (for purchasing and leasing purposes) will be set at zero percent in the Seoul metropolitan area and/or speculation regulated zones, which will help to restrict the issuance of business loans in ways that could bypass the tightened mortgage rules. However, as there are concerns about potential shortages in rental housing, exemptions may be granted for newly built housing units upon approval
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Aug 28, 2025
- FSC Introduces Measures to Strengthen Anti-vishing Capabilities in Financial Sector
- The Financial Services Commission introduced a set of measures intended to strengthen anti-vishing capabilities in the financial sector on August 28. The measures are part of the governments comprehensive plan to root out vishing scams announced earlier on the same day. Key Measures I. Introduce Liability of Compensation and Strengthen Response Capabilities The government plans to introduce liability of compensation in legislation for the loss incurred in part or in whole resulting from a vishing scam for those entities that bear the responsibility of preventing vishing scams, such as financial companies. With the advent of AI technologies in crimes and the use of stolen personal data in highly manipulative and psychologically domineering ways, the methods used by vishing perpetrators these days show that they are advancing evermore rapidly. In this regard, practice of caution by individuals alone cannot effectively prevent damages, and that it is now time to more systematically and proactively respond to vishing scams through strengthening the responsibility of financial companies that are equipped with the needed expertise and infrastructure, such as fraud detection system (FDS). Earlier in January 2024, financial companies had adopted standards for providing compensation for loss incurred in online or mobile financial frauds on a voluntary basis. However, compensations were provided only under specific conditions (e.g. use of fraudulent passwords) on a restricted basis, which had limited impact on the overall improvement of anti-vishing efforts across the financial industry. Thus, once the liability of compensation clause is put into legislation, victims of vishing scams will be able to receive at least a certain level of compensation from financial companies even if the transfer of money which led to financial loss was carried out by the victim him/herself under duplicitous circumstances. Making financial companies liable to compensation will also provide them w
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Jul 30, 2025
- FSC-FSS-KRX Launch Joint Response Team to Root Out Stock Market Manipulation
- The Financial Services Commission, the Financial Supervisory Service, and the Korea Exchange launched a joint response team on stock market manipulation and held the newly created teams signboard unveiling ceremony on July 30. The joint response team is a collaborative operation of the three organizations set up at the KRX, and it aims to bolster the initial response function of KRXs market surveillance committee. Prior to the signboard unveiling event, Chairman Kwon Dae-young of the Securities and Futures Commission (SFC) held talks with the staff of the newly created team and reaffirmed the importance of stamping out unfair trading activities in capital markets. A Summary of Opening Remarks by SFC Chairman Putting an end to stock market manipulation can be seen as a start of building confidence in the market. Stock manipulation should be caught at any cost, and when detected, the violator should be subject to economic sanctions surpassing the level of unfairly gained profits, and the manipulator should not be able to engage in securities transactions or serve as an executive of a listed company. Simply put, the violator should be effectively barred from capital markets. With the establishment of a joint response team, the physical, informational, and jurisdictional separation and division previously existing between the three organizations have been effectively removed. The planned introduction of AI technology and upgrading KRXs market surveillance system to make surveillance more individual-focused rather than account-based will also help the operation of the joint response team. The financial authorities will also seek to enhance cooperation with investigative authorities to make sure that follow-up criminal investigations take place more swiftly and effectively. With regard to the recent cases involving employees of financial companies, authorities will make sure to bring severe punishment against them. At the same time, financial companies should strengthen s
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Jul 28, 2025
- Authorities Propose Plans to Set Up Anti-vishing Platform Using Artificial Intelligence Analytics
- The Financial Services Commission held a meeting with related authorities, private sector experts, and financial industry associations on July 28 and introduced measures to step up anti-vishing response efforts and set up a comprehensive anti-vishing platform using artificial intelligence (AI) analytics. Anti-vishing AI Platform Currently, individual financial companies are able to take appropriate anti-vishing measures on suspicious account activities based on the operation of their own fraud detection systems (FDS). However, the current response system faces hurdles in its capacity in that individual financial companies have experience with only limited numbers of prior vishing cases and carry out surveillance only based on their own analysis of scam patterns. Moreover, even when they detect an account used for vishing scam, there is no instant information sharing between financial companies, so that they lack sufficient information about the newly emerging types and patterns in vishing scams individually. This has also created significant divergence between financial companies in their anti-vishing response capacities and has not helped to speed up the process of suspending problematic accounts used in criminal activities. In this regard, the anti-vishing AI platform is a digital data infrastructure that will help the authorities to tackle these limitations in the current anti-vishing response system. The platform will gather information and data on suspicious accounts from across all financial sectors, telecom service providers, and investigative authorities and will operate two different types of information categoriesthose required for immediate sharing and those analyzed by AI. The types of information categorized as requiring immediate sharing will be instantly disseminated and shared with financial companies and related organizations to facilitate immediate suspension of account activities. This will help to quickly freeze multiple financial accounts used i
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Jul 23, 2025
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Jul 23, 2025
- FSC Identifies D-SIBs and D-SIFIs for 2026
- The Financial Services Commission identified five bank holding companies (BHCs) and five banks as domestic systemically important banks (D-SIBs) and domestic systemically important financial institutions (D-SIFIs) for 2026 at the 14th regular meeting held on July 23. Those selected for 2026 are same as the previous years list of selectionShinhan Financial Group, KB Financial Group, Hana Financial Group, Woori Financial Group, NH Financial Group, Shinhan Bank, Woori Bank, KB Kookmin Bank, KEB Hana Bank, and NH Bank. Those identified as D-SIBs are required to set aside an additional common equity capital of 1.0 percent. The FSC identifies D-SIBs every year in accordance with assessment criteria recommended by the Basel Committee on Banking Supervision (BCBS). Meanwhile, the FSC also identifies D-SIBs as domestic systemically important financial institutions (D-SIFIs) under the amended Act on the Structural Improvement of the Financial Industry. D-SIFIs are required to prepare and submit their own recovery plans to the Financial Supervisory Service (FSS) within three months from the day of being designated as a D-SIFI. Since the D-SIBs selected for 2026 are the same as the previous year, there will be no actual increase in capital ratio required from them. * Please refer to the attached PDF for details.
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Jul 23, 2025
- Capital Market Rule Changes Proposed to Strengthen Response against Unfair Trading Activities
- The Financial Services Commission issued a preliminary notice of regulatory changes on July 23 regarding the Enforcement Decree of the Financial Investment Services and Capital Markets Act (FSCMA) and subordinate rules to strengthen early response and bring more stern measures against unfair trading activities. Key Revision Details I. Establish a regulatory ground to upgrade KRXs surveillance system to make it more individually-focused (from account-based system currently) Under the current system, the KRX performs surveillance based on accountsand not based on individualsas it is not authorized to make use of investors personal information. As such, surveillance targets remain too broad and it is difficult to identify activities connected to the same entity. Thus, the revision proposal authorizes the KRXs market surveillance committeein its surveillance capacityto process investors personal data (resident registration number in pseudonymized form). Based on this, the KRX will be able to perform more individually-focused market surveillance. This transition from the current account-based to a more individual-centered approach will help to boost the efficiency in market surveillance as surveillance targets will be reduced by about 39 percent. Moreover, it will allow the authorities to more effectively and quickly find out and identify whether certain activities have been carried out by the same entity, what and how much role did the rule-breaker play in manipulating stock prices, and whether there was cross trading involved. II. Strengthen the criteria for imposing penalty surcharges and introduce aggravated sanctions criteria a) Penalty surcharge for unfair trading activities Under the current penalty surcharge standards, unfair trading activities can be subject to penalty surcharges amounting to either 50 percent to 200 percent of the amount of unfairly gained profits (for use of undisclosed material information, price manipulation, or unfair transaction) or 50 per
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Jul 22, 2025
- Maximum Deposit Protection Coverage of KRW100 Million Scheduled to Take Effect from September 1
- The Financial Services Commission announced that the government approved a set of legislative revision bills raising the maximum deposit protection coverage to KRW100 million from KRW50 million previously at the cabinet meeting held on July 22. The increased deposit protection coverage will take effect from September 1, 2025. Since the Depositor Protection Act was revised on January 21 this year raising the minimum deposit protection level to KRW100 million, the FSC and related ministrieshad worked on amendments to six Enforcement Decrees, which were approved at the cabinet meeting today. Therefore, starting from September 1 this year, the maximum deposit protection coverage in the case of a financial company turning insolvent will be raised to KRW100 million for banks, savings banks, insurance companies, and financial investment businesses that are covered by the Korea Deposit Insurance Corporation (KDIC) under the Depositor Protection Act. Moreover, mutual finance businessescredit unions, agricultural cooperatives, fisheries cooperatives, forestry cooperatives, and community credit cooperativesthat are covered by their own federation funds will also be subject to the increased deposit protection limit of KRW100 million. Principal-protected savings and installment savings products will be covered up to KRW100 million regardless of when the account was opened. However, investment products such as funds that are linked to the performance of fund management will not be covered. In addition, retirement pension plans, pension savings, and accident insurance payments that are handled separately within the same financial company will also be subject to the increased deposit protection coverage. Since the increase in deposit protection coverage will take effect for the first time in 24 years since 2001, it is expected that depositors will be entitled to enhanced protection of their savings and there will increased credibility over financial market stability. Moreover, cons
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Jul 09, 2025
- Authorities Lay Out Plans to Stamp Out Unfair Trading Activities in Stock Markets
- The Financial Services Commission, the Financial Supervisory Service, and the Korea Exchange introduced joint measures to stamp out unfair trading activities in stock markets on July 9. The financial authorities have held a series of meetings and discussions in the past month to seek ways to strengthen initial response and ensure strict punishment on unfair trading activities (price manipulation, etc.). The following measures have been prepared based on these discussions. Key Measures I. Establish a Joint Response Team to Root Out Stock Price Manipulation Under the current response system for unfair trading activities, the examination (KRX) and investigation (FSC FSS) functions are dispersed across different organizations, and they each have different levels of authority, for instance, to check financial (securities or bank) accounts or force investigation. This led to the problem of delay in responding to cases which required urgent actions from the authorities. Thus, in order to boost the efficiency in examination and investigation, the FSC, the FSS, and the KRX plan to establish a joint response team to root out stock price manipulation. The joint response team, a collaborative operation among the FSC, the FSS, and the KRX, will be set up at the KRX with an aim to bolster the initial response function of KRXs market surveillance committee. The joint response team will work under the same workspace and perform investigations on important cases that require urgent response together from the early stage. In the process, each organization (FSC, FSS, and KRX) will make utmost use of its investigative authority to promptly carry out investigations on cases associated with (a) frequent rule-breakers, (b) largest shareholder or company executives, (c) use of false information on social media, etc. II. Upgrade KRXs Surveillance System to Make It More Individually-focused (from account-based system currently) and Adopt AI Technology in Market Surveillance Under the current
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Jun 27, 2025
- Authorities Introduce Measures to Strengthen Household Debt Management Centered on Seoul Metropolitan Area
- The Financial Services Commission held a meeting on household debt on June 27 with officials from related government ministries, industry groups, and housing loan and guarantee institutions. At the meeting, officials discussed the expanding trend of household debt triggered by mortgage loans in the Seoul metropolitan area and announced a set of measures that will help to strengthen the management of household debt especially in the Seoul metropolitan area. Household Loans In recent months, the outstanding balance of household loans has been growing since April due to the rising volume of housing transactions in the wake of temporary lifting of the land transaction permit scheme in Seoul and expectation for rate cut, and this trend has continued into June. With the rise in the volume of housing transactions in the Seoul metropolitan area,mortgage loans in this region has grown rapidly in particular. Key Measures I. Bolstering Total Management Target Considering the economys nominal GDP growth forecast and the recent trend of household debt growth, the annual target volume of household loanswhich include both financial companies own loan products and government-sponsored policy loanswill be revised down from the current level. For financial companies own loan products across all financial sectors, the total annual target volume will be reduced to 50 percent of the previous level effective from the second half of this year. For policy loans, the annual supply plan will be 25 percent less than the previously set level. II. Applying Banks Self-regulatory Measures in All Other Financial Sectors The implementation of self-regulatory household debt management measures taken up by banks on a voluntary basis will be expanded to all other financial sectors. First, in the Seoul metropolitan area and/or speculation regulated zones,current homeowners (multiple-house owners or single-house owners without the intention to sell currently owned house) will not be allowed to purchase
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May 20, 2025
- FSC Announces Plan to Implement Third-stage Stressed DSR Rule as Scheduled from July 1
- The Financial Services Commission held a meeting on household debt with officials from related government ministries, industry groups, and five major banks on May 20. At the meeting, officials reviewed recent household debt situation and risk factors and discussed detailed measures for implementing the third-stage stressed debt service ratio (DSR) rule as scheduled from July 1, 2025. Moreover, the financial authorities, officials from related ministries, and financial industry groups vowed to more closely communicate and cooperate to ensure stable management of household debt. Household Loans In 2025, the trend of household loan growth remained stabled in the first quarter. However, in April, the outstanding balance of household loans across all financial sectors increased KRW5.3 trillion from the previous month (up KRW0.7 trillion), growing at a notably faster pace. In April, home mortgage loans grew at a faster pace (up KRW3.7 trillion up KRW4.8 trillion), and other types of loans including credit loans shifted back up from the decline seen a month ago (down KRW3.0 trillion up KRW0.5 trillion). This pattern of growth appears to be continuing in May. At the meeting, officials assessed that the overall growth of household loans in April was mainly due to the recent rise in housing transactions pushing up mortgage loans and the low base effect from the previous month where sales or cancellation of nonperforming debt took place at the end of the first quarter. Considering the expectation of interest rate cuts in the future and the effects of the scheduled increase in deposit insurance coverage from September 1 this year on nonbank financial institutions, officials emphasized the need to ensure a preemptive management over household debt. Implementation of Third-stage Stressed DSR Rule After coordinating with related authorities, the FSC decided to implement the third-stage stressed DSR rule* as scheduled from July 1, 2025. * The stressed DSR rule imposes a certain lev
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May 15, 2025
- Rule Change Proposed to Increase Maximum Deposit Protection Coverage to KRW100 MN from September 1
- The Financial Services Commission issued a preliminary notice of legislative revisions intended to raise the maximum deposit protection coverage on May 15. The revision proposal will enter a public comment period from May 16 to June 25, 2025. For the first time in 24 years, the revised rule will increase the maximum deposit protection coverage to KRW100 million from the current level of KRW50 million from September 1, 2025. The increased deposit protection limit will apply to both banks and savings banks whose deposit protection is covered by the Korea Deposit Insurance Corporation (KDIC) and mutual finance institutionswhose deposit protection is covered by their own federation funds. Thus, from September 1 this year, depositors are guaranteed deposit protection of up to KRW100 million in the event of a financial company turning insolvent or bankrupt and becoming unable to pay their deposits. This will not only help to strengthen protection for depositors but also alleviate the inconvenience of having to spread out savings across multiple financial institutions. Moreover, it will raise the domestic deposit protection level on a par with those seen in major overseas countries and push up the overall volume of insured deposits, which will help to shore up confidence about financial market stability. Prior to the Asian financial crisis in 1997, there were varying degrees of deposit protection coverage observed by different financial sectors, ranging between KRW10 million and KRW50 million. However, in the wake of the 1997 Asian financial crisis, blanket guarantees were temporarily introduced across all financial sectors between November 18, 1997 and the end of December 2000. In order to address the problem of moral hazard arising from blanket guarantees, limited coverages were reinstated In 2001 across all financial sectors with the maximum coverage of KRW50 million, which has remained the same for the past 24 years. Considering the level of growth seen in the economy
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Apr 14, 2025
- New Sanctions Mechanisms on Unfair Trading and Illegal Short Sale Activities to Take Effect from April 23
- The Financial Services Commission announced that the government approved the revision bill for the Enforcement Decree of the Financial Investment Services and Capital Markets Act (FSCMA) intended to establish new sanctions mechanisms against unfair trading and illegal short sale activities at the cabinet meeting held on April 14. The revised Enforcement Decree is scheduled to go into effect on April 23, 2025 along with the revised FSCMA and subordinate regulations. Background The government has continuously worked to strengthen monetary sanctions through the introduction of penalty surcharge and the increased level of fine imposable against unfair trading and illegal short sale activities in capital markets. However, in order to more effectively prevent the recurrence of unfair trading activities, the need for introducing non-monetary sanctions mechanismssuch as an account freeze and a restriction from being appointed or serving as an executive officer at listed companieshas been called for taking examples from major overseas countries, such as the U.S., Hong Kong, and Canada. Therefore, this revision bill introduces the following non-monetary sanctions mechanisms(a) a restriction for rule-breakers from engaging in transactions of financial investment products and being appointed or serving as an executive at listed companies and (b) an account freeze (payment suspension) on the accounts suspected to have been used in unfair trading or illegal short sale activities. Key Revision Details I. Restriction from Engaging in Transactions of Financial Investment Products Application of Regulation Under the revised FSCMA, the FSC is authorized to restrict rule-breakers (those who have engaged in unfair trading and/or illegal short sale activities) from engaging in transactions of financial investment products for up to five years depending on the nature, seriousness, period, frequency, and the level of unfairly gained profits of the rule-breaking activities. In this regard,
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Mar 24, 2025
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Feb 26, 2025
- Authorities Propose Comprehensive Measures to Prevent Mis-selling of Highly Complex Investment Products
- The Financial Services Commission and the Financial Supervisory Service introduced a set of measures intended to prevent mis-selling of highly complex financial investment products on February 26. Background In the aftermath of large-scale losses incurred to investors regarding the sales of Hong Kong index-linked ELS (equity-linked security) products by domestic financial companies in early 2024, the FSS prepared the guidelines for compensations on March 11, 2024, and the banking sectors compensation programs have been in progress. As a result, the numbers of compensations being paid out to investors, of cases in which investors have agreed to the terms of compensation, and of the ratio of compensation amount on average have all continued to increase between the end of June 2024 and the end of 2024. On-site inspections conducted by the FSS revealed that most bank branches had no clear distinction of counters between the ones selling highly complex financial investment products and those handling ordinary deposit-taking functions. As a result, great numbers of consumers could have been misled into believing that these highly complex financial investment products were principal-guaranteed products. Moreover, their sales practices revealed that financial companies placed a higher priority on sales performance rather than on the compliance of sales regulations. As a consequence, there was inadequate information provided to investors regarding the risk associated with highly complex financial investment products, and the sales of ELS products took place without the establishment of sufficient internal control mechanisms designed to prevent mis-selling and ensure protection of consumers. Against this backdrop, the FSC and the FSS have prepared measures to prevent mis-selling of highly complex financial investment products after having a series of meetings with related experts and industry groups. Key Measures a) Making improvements to financial investment products sales c
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Dec 19, 2024
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Dec 19, 2024
- FSC and FSS Announce Measures to Ensure Market Stability and Bolster Support for the Real Economy
- The Financial Services Commission and the Financial Supervisory Service announced on December 19 a set of measures intended to ensure financial market stability and enhance the financial sectors capacity to support domestic businesses and the real economy in preparation for a potential expansion of market volatility caused by ongoing uncertainties at home and abroad. After having a series of market monitoring and industry group meetings with financial companies, the capacity enhancement measures for financial companies soundness, liquidity, and financial conditions have been drawn up well within the scope of international standards, such as the Basel III framework. First, the stress capital buffer requirement for banks that was initially set to be introduced this year will be postponed until the second half of 2025. Authorities will reexamine the exact timeline and method for introducing stress capital buffers in the first half of 2025. Second, with regard to the foreign exchange (FX) positions of banks, the non-hedgeable types of FX positions, such as investments on overseas branches that are not significantly exposed to the risk of short-term volatility in the FX market, will not be counted toward the calculation of their FX risk exposures. Third, when insurance companies make contributions to the stock market stabilization fund through purchase of the fund, the amount being calculated toward the risk exposure of their K-ICS (Korea Insurance Capital Standard) ratios will be reduced from the entire amount to half the amount. Moreover, the following measures have been prepared to lower the burden of financial companies in issuing loans and investing in domestic companies, thereby enhancing financial companies capacity to support domestic businesses and the real economy. Fourth, changes will be made to the 400 percent risk weight currently applied across the board on new technology investment funds, venture funds, and other types of investment association funds estab
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Dec 16, 2024
- FSC Chairman Holds Meeting and Calls for Continuous Efforts at Market Stability and Policy Implementation
- Chairman Kim Byoung Hwan of the Financial Services Commission convened an extended senior officials meeting on December 16 to discuss current situation and response strategies. The following is a summary of Chairman Kims remarks. A Summary of Chairmans Remarks In response to current political situation, the governments top priority has been to leave no vacuum in the administration of state affairs. In this regard, as public servants overseeing the countrys financial policies, financial officials should continue to carry out their responsibilities with a sense of duty. In order to boost confidence in the market and ensure external creditworthiness, it is necessary to have continuous efforts to ensure market stability and implement policies in a consistent way. Although market conditions have recently become less volatile, it is still necessary to stay vigilant and maintain a 24-hour market monitoring system, while continuing to closely communicate with financial companies and investors at home and abroad. In particular, officials are asked to quickly review suggestions raised from the financial industry for ensuring market stability, such as the potential of postponing the implementation of stress capital buffers, and promptly announce what can be done as soon as possible starting from this week. To help small merchants and self-employed business owners with their financial difficulties, it is necessary to introduce the measures intended to reduce the burden of card processing fees as they have been initially planned for this week. In addition, officials are asked to closely coordinate with the banking sector to make sure that we can announce within this month new support measures, such as a debt workout program for non-delinquent business owners and those undergoing business closure. To ensure that businesses face no difficulties in raising funds, officials are asked to closely check the financing situation of businesses by their size and gather opinions from relate
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Dec 10, 2024
- FSC Chairman Holds Meeting with Foreign Financial Companies
- Chairman Kim Byoung Hwan of the Financial Services Commission met with officials from foreign financial companies on December 10 to have talks on recent political and economic situations in Korea and to assure that the Korean government has sufficient capacity to ensure stability in financial markets. At the meeting, Chairman Kim emphasized that despite increased political uncertainties, the countrys economic issues are being managed in a consistent and stable manner with the Deputy Prime Minister leading the governments economic team. Chairman Kim also said that the government has maintained a high level of preparedness for the implementation of market stabilization measures, and that key policy agendas, such as the soft-landing of the real estate project finance market, Corporate Value-up Program, and capital market reform initiatives, will continue to be pursued according to the previously set schedule. In this regard, Chairman Kim said that the government will make efforts to more closely communicate with foreign financial companies to provide adequate explanations about the ongoing situations and the governments plans. The officials from foreign financial companies attending todays meeting expressed a view that the current political situation will not significantly affect the fundamentals of the Korean economy or have negative impact on the economy on a continuing basis. They showed expectations that as long as the current political uncertainty is resolved quickly, financial markets will also return to stability in no time. However, to help ease short-term volatility in the stock market, participants also raised a view that it is necessary for institutional investors, such as pension funds, to play a more active role in the market. * Please refer to the attached PDF for details.
