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Mar 07, 2022
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Mar 04, 2022
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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
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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
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Feb 24, 2022
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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
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Feb 22, 2022
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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
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Feb 15, 2022
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Feb 10, 2022
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Feb 07, 2022
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Jan 27, 2022
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Jan 25, 2022
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Jan 19, 2022
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Jan 19, 2022
- FSC Chairman Holds Meeting to Review Debt Risks of Small Merchants
- FSC Chairman Koh Seungbeom held a meeting with officials from the Bank of Korea, Financial Supervisory Service, research institutions and local banks on January 19 to check business conditions of small-scale businesses and their debt risks as the loan maturity extension and payment deferment program is set to expire at the end of March 2022.The following is a summary of Chairman Kohs keynote address. Chairmans Remarks Self-employed small businesses make up about 87 percent of all businesses and 21 percent of economically active population in Korea. However, these businesses have suffered greatly in the past two years amid the COVID-19 pandemic crisis. The financial sector has provided them with loan maturity extensions and deferment on interest payments and it has helped to ease small merchants payment burdens on some KRW272.2 trillion worth of business loans between April 2020 and November 2021. In addition, the small merchant lending support programs made available low interest rate busines loans to those facing liquidity problems. From the end of this month, adjustments made to the card processing fee rates will also help ease small merchants fee burdens.The prolonged pandemic situation, however, has raised concerns about a spread of potential risks to the financial system. For the past two years, the speed of debt growth for the self-employed has exceeded that of the household sector. An accumulation of bad debts can threaten stability in the financial system. In particular, delays in business recovery coupled with interest rate hikes can lead to a credit crunch and pose greater problems for small businesses. The loan maturity extensions and payment deferments for small merchants and SMEs are set to expire at the end of March 2022. Although it is difficult to predict events two months ahead, it is certain that there will be contradictory policy tasks between ensuring the risk handling capacity of small businesses and strengthening risk management in the financia
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Jan 18, 2022