Press Releases - Financial Services Commission

Press Releases

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Apr 20, 2026

Financial Companies Will be Able to Use Cloud-based Software as a Service on Internal Network from April 20

The Financial Services Commission announced that financial companies and electronic financial service providers will be able to adopt and use cloud-based Software as a Service (SaaS) for various types of administrative and back office functions without the need to go through an approval process under the financial regulatory sandbox program from April 20. The revised rules on the supervision of electronic financial services went into effect on April 20, granting financial companies exemption to the network separation rule for the use of SaaS in their internal networks on the condition that they comply with certain security requirements. Key Revision Details First, SaaS programs specified under the Enforcement Decree of the Act on the Development of Cloud Computing and Protection of Its Users will be exempted from the network separation rule pursuant to the Electronic Financial Transactions Act and the supervisory regulation on electronic financial services. However, to prevent potential breaches of personal information, the exemption form the network separation rule will not apply to the handling of personal identification information or personal credit information. For the use of pseudonymized personal data in their SaaS programs, financial companies will still need to get an approval through the financial regulatory sandbox program. Second, with the granting of exemption from the network separation rule, financial companies will be required to maintain a more rigorous level of information protection control measures. More specifically, financial companies will need to (a) have their SaaS programs pre-screened by the Financial Security Institute (FSI), (b) maintain strict IT security protocols (certification, authorization, etc.) for access devices (computers and mobile devices), (c) have their compliance measures evaluated every six months and report finding to their chief information security officers (CISOs). To facilitate the adoption of various IT security and
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Apr 16, 2026

Capital Regulations and Requirements to be Improved for Banks and Insurers to Promote Productive Finance

Chairman Lee Eog-weon of the Financial Services Commission presided over the fifth meeting on propelling a transition to productive finance with officials from the Financial Supervisory Service, the banking and insurance sectors, and related industry groups on April 16. At todays meeting, officials discussed ways to improve upon the capital regulations and requirements for banks and insurers to help strengthen their capital capacity aimed at productive finance. With the participation of private sector experts, officials also discussed the impact of the Middle East situation on domestic industries and went over the progress of financial assistance measures made available from the financial industry. A Summary of Opening Remarks by FSC Chairman The situation in the Middle East is raising concerns about an expanded level of volatility in financial markets. With many businesses undergoing the challenges of rising costs and financing difficulties, it is very much appreciated that the financial sector has made available KRW53 trillion-plus in financial assistance programs. As the situation in the Middle East may continue to go on for a while, it is important to provide support more proactively. In this regard, the FSC will work to maintain financial market stability and make certain that the risks originating from the Middle East do not translate into a financial market contraction or a drag in the real economy. Moreover, in order to be adequately prepared for a potential shift in global supply chains and a restructuring of industries in a post-war period, the FSC will continue to push forward with our productive finance initiatives to promote energy transitions and the growth of strategic industries. The measures to improve upon the capital regulations and requirements for banks and insurers, which are being announced today, will free up their productive finance capacity by up to KRW98.7 trillion (KRW74.5 trillion for banks and KRW24.2 trillion for insurers). As such, th
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Apr 16, 2026

FSC-KRX Hold Seminar on Improving Rules on Split Listing

The Financial Services Commission and the Korea Exchange jointly held a policy seminar on improving rules on split listing on April 16. The government had previously announced a plan in March this year to prohibit split listing of parent and subsidiary companies in principle as part of broader efforts to seek improvements in the domestic capital markets. In this regard, todays seminar will help the authorities to gather diverse opinions and advice on overall policy directions and specific regulatory designs from investors and experts from various backgrounds. At the beginning of the seminar, FSC Chairman Lee Eog-weon delivered congratulatory remarks speaking on the importance of seeking ways to further strengthen the fiduciary duty of corporate executives and boards in the best interests of ordinary shareholders. A Summary of Remarks by FSC Chairman The practice of split listing of parent and subsidiary companies has often been used to expand the business operations and affiliates of corporate entities, while controlling shareholders continue to maintain the practical ownership rights. In this process, ordinary shareholders were left out from sharing the profit of growth achieved by the subsidiary company and had to bear the cost of discounts in stock prices. To address this problem and to bring more fairness and reasonableness to the domestic capital markets, it is necessary to gather diverse opinions and advice on ways to effectively tackle this problem. In this regard, financial authorities will seek to upgrade relevant rules and bolster the screening process to make sure to draw a clear line between the split listings that lead to an asymmetrical profit structure for only a few and the ones that are deemed to be fair and that can create new value for ordinary shareholders. Additionally, the rules change will require the parent companys board to examine the impact of split listing on its shareholders and prepare measures to ensure shareholder protection to have c
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Apr 14, 2026

High-tech Industry Investment Worth KRW50 Trillion-plus Planned for Five Years through National Growth Fund

The Financial Services Commission announced that the private-public joint strategic committee on National Growth Fund (NGF) held its second committee meeting on April 14. At todays committee meeting, officials announced a second batch of investment megaprojects sought by the NGF and discussed specific investment plans that are aimed at strengthening the foundation of high-tech industries and their ecosystems. The second batch of megaprojects has been drawn up based on the significant impact each industrial project can have on high-tech industrial ecosystems and considering the need to promote the growth of regional economies. In this regard, under the second batch of megaprojects, the NGF will provide investment and/or lending support for the following high-tech strategic projects(a) next generation biotech and vaccines, (b) OLED display facility, (c) future mobility and defense, (d) sovereign artificial intelligence, (e) energy infrastructure development, and (f) Saemangeum development project (robotics, hydrogen, AI and energy). NGF Investment Plans for High-tech Industries The FSC plans to inject investments worth KRW50 trillion-plus for the next five years in the form of direct and/or indirect investment and lending support for the development of high-tech industries and their value chains to foster the creation of strong and innovative industrial bases. a) KRW35 trillion in indirect investment via private-public joint investment fund A private-public joint investment fund in the amount of KRW35 trillion will be operated through 20 different types of feeder funds to help close the loophole in investment blind spots across various industries. This will facilitate a bold injection of investment support in the areas that have been previously overlooked by policy-based funds in the past. With the establishment of a scale-up fund and an ultra-long-term (minimum 10 years) technology investment fund, large-scale growth capital and long-term investment will be provided
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Apr 10, 2026

FSC Chairman Meets with Chairman of AMCHAM Korea and Discusses Ways to Strengthen Financial Competitiveness

Chairman Lee Eog-weon of the Financial Service Commission met with Chairman and CEO of the American Chamber of Commerce in Korea (AMCHAM Korea) James Kim at his office in Seoul Government Complex on April 10. At the meeting, FSC Chairman Lee and AMCHAM Korea Chairman Kim discussed ways to attract more investments in Korea from global financial institutions and strengthen Koreas financial regulatory competitiveness. On March 25 this year, AMCHAM Korea published a special report titled Koreas Financial Hub Agenda as part of its efforts to promote Korea as a leading financial hub in the Asia-Pacific region. In this regard, AMCHAM Korea Chairman Kim expressed significant potential for Korea to be able to host growing numbers of Asia-Pacific regional headquarters of multinational corporations in the future. In this regard, FSC Chairman Lee expressed appreciations for AMCHAM Koreas interest and support for Koreas financial sector development and shared how Koreas financial sector innovation has been perceived by the international society and what the government plans to do next. According to the 39th edition of the Global Financial Centres Index (GFCI 39), which was unveiled on March 26, 2026, Seoul and Busan ranked in the 8th and 23rd places, respectively, which demonstrates Koreas elevated financial hub status globally. In order to continue to boost Koreas financial sector competitiveness and facilitate an inflow of foreign investments, the FSC plans to work on a seamless implementation of the follow-up measureson omnibus account, English disclosure, dividend payout, etc.in accordance with the governments earlier announced roadmap (January 2026) for the inclusion in the MSCI developed markets index. In closing the meeting, FSC Chairman Lee and AMCHAM Korea Chairman Kim shared the same view on the need to maintain close cooperation and constructive dialogue between the two organizations in order to further help to strengthen Koreas financial hub status. * Please refer to
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Apr 09, 2026

An AI-based Credit Rating Framework Focused on the Needs of Small Businesses to be Introduced

The Financial Services Commission announced a plan to introduce an artificial intelligence (AI)-based credit rating framework focused on the needs of small businesses and self-employed business owners at the third taskforce meeting on upgrading the credit rating system held on April 9. Key Measures a) Introducing Small Business Self-Ownership Credit Bureau (SCB) The Small Business Self-Ownership Credit Bureau (SCB) is an AI-driven credit rating model specifically tailored to the needs and characteristics of small businesses and self-employed business owners. It is designed to evaluate the future growth potential of small businesses in their business areas by making use of a variety of nonfinancial data, such as the sales performance, the category and location of business operation and so on. The SCB ratings (ranging between S1 and S10) combine the current CB ratings of small businesses with their potential future scale-up ratings. A higher score on the future scale-up ratings (e.g. S1 or S2) will help to push up the overall credit score of small businesses, making them eligible for more opportunities and enhanced benefits in their access to loans. The potential future scale-up ratings of small businesses will be generated by combining an AI-based quantitative evaluation model taking into account a set of measurable variables and a qualitative evaluation model looking into particular characteristics and strengths of individual businesses. A higher score on the qualitative evaluation model will push up the ultimate SCB rating of small businesses, and a higher SCB rating will help to upgrade their overall CB ratings, making them eligible for more opportunities and enhanced benefits in their access to loans. The SCB ratings for small businesses will be piloted with participating banks in the second half of 2026 (expected to be from August). After examining the outcome of pilot operation in the second half of 2027, credit bureaus and financial companies will then begin t
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Apr 08, 2026

Household Loans, March 2026

In March 2026, the outstanding balance of household loans across all financial sectors increased KRW3.5 trillion (preliminary), growing at a faster pace compared with the previous month (up KRW2.9 trillion). (By Type) Home-backed mortgage loans rose KRW3.0 trillion, growing at a slower pace compared with the previous month (up KRW4.1 trillion). The pace of growth in mortgage loans slowed down in both the banking (up KRW0.3 trillion up KRW0.003 trillion) and nonbanking (up KRW3.8 trillion up KRW3.0 trillion) sectors. Other types of loans rose KRW0.5 trillion, shifting back up from the decline of KRW1.2 trillion in the previous month, as credit loans (down KRW1.0 trillion down KRW0.2 trillion) dropped at a slower pace. (By Sector) In March 2026, household loans in the banking sector rose KRW0.5 trillion, turning back up from the decline of KRW0.4 trillion a month ago. Banks own mortgage loans (down KRW1.1 trillion down KRW1.5 trillion) declined at a faster pace, while policy-based mortgage loans (up KRW1.4 trillion up KRW1.5 trillion) edged up at a slightly faster pace. Other types of loans (up KRW0.5 trillion) shifted back up from the decline of KRW0.7 trillion a month ago. In the nonbanking sector, household loans edged up KRW3.0 trillion, growing at a slower pace compared with the previous month (up KRW3.3 trillion). Mutual finance businesses (up KRW3.1 trillion up KRW2.7 trillion) saw household loans growing more slowly, while insurance companies (up KRW0.2 trillion up KRW0.6 trillion) saw household loans rising more rapidly. Savings banks (down KRW0.1 trillion down KRW0.4 trillion) saw household loans falling at a faster pace, while specialized credit finance businesses (up KRW0.1 trillion up KRW0.1 trillion) saw household loans expanding at a similar level compared with the previous month. (Assessment) In March 2026, the outstanding balance of household loans (up KRW2.9 trillion up KRW3.5 trillion) expanded at a somewhat faster pace from a month before led by th
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Apr 06, 2026

Revised Rules on Microfinance Support to Strengthen Foundation for Inclusive Finance Assistance

The Financial Services Commission announced that a revision bill for the Enforcement Decree of the Microfinance Support Act was approved by the government at the cabinet meeting held on April 6. Under the revised rules, (a) the size of annual microfinance contributions financial companies make to the Korea Inclusive Finance Agency (KINFA) will be expanded to ensure a steady foundation for the supply of microfinance assistance, and (b) a legal foundation will be established enabling the KINFA to provide credit guarantee support for the users of microloan service under the Credit Counseling and Recovery Service (CCRS) program. Key Revision Details a) Expanding financial companies annual microfinance contribution amounts Against the backdrop of rising external uncertainties and straining economic conditions, lower-income individuals and vulnerable groups stand at more risk of falling prey to illegal private lending activities, and thus there exists an urgent need to expand the supply of microfinance support. In this regard, the FSC has been seeking to increase the common contribution rate financial companies are subject to when making contributions to the KINFA in relation to the size of their household loans. This common microfinance contribution rate was set at 0.06 percent for banks and 0.03 percent for nonbanks (insurance, mutual finance, specialized credit finance, and savings banks) in relation to the size of their household loans. This amounted to an annual contribution level of about KRW434.8 billion in total (KRW247.3 billion from banks and KRW187.5 billion from nonbanks). Under the revised rules, this common microfinance contribution rate will be raised by 0.04 percentage points for banks to 0.1 percent and by 0.015 percentage points for nonbanks to 0.045 percent, which will expand the total amount of annual contributions by about KRW197.3 billion (KRW134.5 billion more from banks and KRW62.8 billion more from nonbanks). With the availability of additional fu
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Apr 06, 2026

Real-Time Balance Reconciliation and Enhanced Internal Control Required for Virtual Asset Exchanges

The Financial Services Commission held a meeting with five major domestic virtual asset exchange service providers and the Digital Asset Exchange Alliance (DAXA) on April 6 to discuss the outcome of inspections carried out in the wake of Bithumbs erroneous payout incident and to discuss measures for improvement. At the meeting, the DAXA and the five major virtual asset exchange service providers announced a joint resolution intended to prevent payment accidents in the future and regain trust from the market by upgrading the industrys self-regulatory framework and strengthening internal control mechanisms. Inspection Results and Improvement Measures An emergency response unit was set up in February in the wake of Bithumbs erroneous payout incident to closely inspect virtual asset exchange service providers for their handling of user assets, vulnerabilities in their operating systems, and internal control mechanisms. a) Inadequacy in ledger-to-wallet balance reconciliation Three out of five virtual asset exchange service providers were found to have in place a ledger-to-wallet balance reconciliation process operating on a 24-hour basis, making them incapable of timely responses when an accidental payout takes place. Additionally, inspections revealed that virtual asset exchange service providers had no adequate preparations for kill switches, which would enable them to immediately halt transactions upon finding a significant gap is the ledger-to-wallet balance reconciliation. Although external verification through accounting firms is taking place on a quarterly basis, information disclosure in this regard is only taking place perfunctorily. In this regard, virtual asset exchange service providers will be required to set up a ledger-to-wallet balance reconciliation system on a real-time basis (every five minutes) to ensure immediate responses in case a payment accident takes place. Additionally, there will be specific criteria introduced for initiating an automated kil
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Apr 01, 2026

Government Unveils 2026 Household Debt Management Plan Aimed at Decoupling of Finance from Real Estate Market

Chairman Lee Eog-weon of the Financial Services Commission presided over the meeting on household debt management on April 1 with officials from related government ministries, financial institutions, and industry groups. At the meeting, officials discussed and introduced the governments household debt management plan for 2026. In order to put an end to excessive concentration of money and inflows of leveraged investments in the real estate market, FSC Chairman Lee said that it is critical to push for an effective decoupling of finance from the real estate market. In this regard, Chairman Lee said that the household debt management measures being introduced today will help to foster the conditions in the financial industry to make a great transition toward productive finance. Overview With the governments consistent efforts to contain the pace of household debt growth in recent years, the household debt to GDP ratiohas continued to decline since after 2021, which demonstrates that a gradual deleveraging is taking place in the household sector. In particular, a set of enhanced household debt management measures introduced in 2025 have contributed to the continuation of a downward stabilization trend despite the presence of interest rate cuts and housing market overheating. However, Koreas household debt to GDP ratiostill remains high compared to other major economies, and there is continuing presence of factors driving the growth of mortgage loans. Therefore, it is necessary for the government to continue to maintain a firm stance on household debt management. Especially against the backdrop of growing uncertainties in the real economy and financial markets, it is necessary to effectively address the potential risk of built-up leverage in the household sector. Key Measures a) Strengthening control over total volume of household debt growth In 2026, the government will continue to strictly manage the total volume of household debt growth in quantitative terms. The targ
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Mar 30, 2026

Rules Change Proposed on VASPs to Strengthen Registration and Anti-money Laundering Requirements

The Financial Services Commission proposed a set of rules change intended to strengthen the registration requirement and the anti-money laundering (AML) duty of virtual asset service providers (VASPs) on March 30. The revision proposal for the Enforcement Decree of the Act on Reporting and Using Specified Financial Transaction Information and its subordinate regulations address details regarding the entry rules of VASPs and the notification of sanctions imposed on retired employees. Moreover, the proposed rules change also deal with the strengthened AML duty (travel rule) of VASPs in their handling of virtual asset transfers. Key Revision Details a) Enhanced entry rules and registration requirements First, the scope of major shareholders falling under the scrutiny for VASPs entry registration will be expanded to include largest shareholder, CEO, controlling shareholder, and the CEO and company representative if the largest shareholder is a corporate entity. Second, VASPs need to meet the following financial soundness and social credibility requirements for registration. VASPs (a) should maintain a debt ratio of 200 percent or below as shown in the most recent quarter-end financial statements, (b) should not have been in default in the past three years, and (c) should not have been identified as an insolvent financial institution or have had its business license revoked in the past. The (chief) executive officers of VASPs need to meet specific qualifications prescribed under the Act on Corporate Governance of Financial Companies. The largest shareholders of VASPs (a) should demonstrate a debt ratio of 200 percent or below as shown in the most recent quarter-end financial statements, (b) should not have been a largest shareholder or a specially associated entity to an insolvent financial institution or a financial institution that has had its business license revoked previously, and (c) should meet specific qualifications prescribed under the Act on Corporate Governan
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Mar 30, 2026

FSC Unveils Benchmark Rate Reform Plans to Ensure Consistent and Swift Transitions

The Financial Services Commission announced benchmark rate reform plans intended to boost confidence in financial markets at the meeting held on March 30 with officials from related financial authorities and industry groups. FSC Vice Chairman Kwon Dae-young presided over the meeting and laid out the following three key principles for benchmark rate reform(a) swiftly improving confidence on benchmark rates, (b) minimizing potential impact on the market, and (c) strengthening protections for financial consumers. Key Details of Benchmark Rate Reform a) Promoting KOFR-basedtransactions in financial markets With the establishment of a central clearing system for KOFR-based overnight index swap (OIS) transactions, the government plans to speed up the adoption of KOFR in the market more quickly than previously planned. To this end, the previously planned KOFR-OIS target of 50 percent by June 2030 (via 10%p increase every year for five years) will be increased to 70 percent by June 2030 (via 15%p increase every year). For the period running from July 2026 until June 2027 (the second year), financial companies will need to meet the KOFR-OIS target of 25 percent (10% in the first year plus 15%p). There will be a new KOFR-FRN (Floating Rate Note) transactions target established (via administrative guidance from the Financial Supervisory Service in June 2026) to promote the adoption of KOFR in the FRN market. In the first year (from July 2026 to June 2027), banks will need to meet the KOFR-FRN target of 10 percent and increase their KOFR-FRN transactions every year by 10%p thereafter to meet the target of 50 percent by June 2031. For policy financial institutions (Korea Development Bank, Industrial Bank of Korea, and Export-Import Bank of Korea), the KOFR-FRN target will be set at 65 percent by June 2031, a 15%p higher than commercial banks. To meet this goal, in the first year (from July 2026 to June 2027), policy financial institutions will issue 25 percent or more of FRNs ba
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Mar 30, 2026

Capital Market Rules Change Proposed to Strengthen Regulations on Disclosure of Treasury Share Holding Status

The Financial Services Commission proposed capital market rules change on March 30 intended to promote the use of treasury shares by listed companies as a means to boost shareholder value in line with the mandatory cancellation of treasury shares promulgated under the recently revised Commercial Act. Under the revised Commercial Act, listed companies are required to cancel treasury shares within one year in principle (within one year and six months for treasury shares acquired prior to the revised law taking effect). For exceptional cases when the retention of treasury shares is deemed to be necessary for employee compensation or other management purposes, listed companies are required to obtain an approval for their retention/disposal plan from the general shareholders meeting. In this regard, the FSC proposes the following rules change to make sure a seamless implementation of the mandatory treasury cancellation requirement under the revised Commercial Act. First, all listed companies will be required to disclose their treasury stock retention status and disposal plans. Second, there will be regulatory reforms regarding the disposal of treasury shares by trust businesses, the issuance of exchangeable bonds backed by treasury shares, and the sale of treasury shares. First, the rules change is proposed to enhance transparency in the disclosure of listed companies treasury share retention and disposal plans and their actual implementation status, and to expand the application of the treasury share disclosure rule to all listed companies. Under the revised Commercial Act, companies are required to indicate in their treasury share retention and disposal plans the purpose of retention and/or disposal, retention status, retention period, and time for disposal. However, if a specific time for disposal is yet to be decided at the time of shareholders approval, it remains difficult for investors and ordinary shareholders to clearly understand the companys treasury share dis
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Mar 25, 2026

KoFIU Unveils H2 2025 Survey Result on Virtual Asset Service Providers

The Korea Financial Intelligence Unit (KoFIU) and the Financial Supervisory Service (FSS) conducted a survey on 27 registered virtual asset service providers (VASPs) to assess the current state of the domestic virtual asset market and keep relevant statistics up to date. Survey Overview (Respondents) 27 VASPs (18 exchange service providers and 9 custody and wallet service providers) (Survey Method) Data collected from VASPs (Period Covered) July 1, 2025 to December 31, 2025 Key Survey Findings for H2 2025 In the second half of 2025, the prices of major virtual assets declined. Compared with the previous six-month period, the number of users eligible to trade (up 360,000 or 3%) and the total amount of deposits in KRW (up 1.9 million or 31%) increased , but average daily trading volume (down 1.0 trillion or 15%), total operating profits (down 237.1 billion or 38%), and market capitalization (down 7.9 trillion or 8%) all declined. As the KRW-based exchange services continuing to dominate the market, the coin-only exchange service providers saw a drop in market capitalization (down 129.3 billion or 26%) over the same six-month period. However, the coin-only exchange market saw increases in average daily trading volume (up 220 million or 36%) and total operating profits (up 2.3 billion or 13%). The overall amount of external transfers of virtual assets to registered entities increased 6 percent. External transfers declined in terms of travel rule transactions (down 23%) but rose in transactions to the whitelisted overseas entities and personal digital wallets (up 14%). Despite a slight increase in the number of custody and wallet service users (up 20 or 3%), the total size of virtual assets in custody and wallet services (down KRW0.4 trillion or 58%) declined significantly due to drops in the base prices of virtual assets. * Please refer to the attached PDF for details.
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Mar 20, 2026

Korea Reappointed as Member of IFRS Foundation's Sustainability Standards Advisory Forum

The Financial Services Commission announced on March 20 that Korea has been reappointed by the International Financial Reporting Standards (IFRS) Foundation as a member jurisdiction of the Sustainability Standards Advisory Forum (SSAF) for three years (2026-2028). The SSAF was established as an official advisory group to support the International Sustainability Standards Board (ISSB) in developing and upgrading IFRS sustainability disclosure standards. The members of the SSAF provide support by contributing their policy experiences in each jurisdiction and market environment. Along with Korea, the SSAF members for 2026-2028 include organizations from 16 different jurisdictions, such as the EU, the UK, China, Japan, Australia, and Canada. From Korea, the FSC and the Korea Sustainability Standards Board (KSSB) will join the SSAF. Koreas reappointment will facilitate the timely sharing of domestic conditions and concerns for implementation at an international stage and help to enhance consistency between international standards, domestic policies, and corporate disclosure practices. As Korea prepares to adopt sustainability disclosure rules in stages based on the international standards put forward by the ISSB, Koreas reappointment presents more opportunities to be able to align domestic experiences with global discussions. The FSC and the KSSB will participate in the first SSAF meeting for 2026-2028 scheduled to take place in March 2026 and will also take part in subsequent meetings to continue to relay Koreas experiences and concerns regarding the implementation of sustainability disclosures. The FSC plans to have continuous engagement with experts and related organizations and industry groups to gather wide-ranging opinions for international discussions and to make sure that domestic rules remain well-aligned with global standards. * Please refer to the attached PDF for details.
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Mar 13, 2026

FSC Chairman Holds Meeting with SC Group CEO

Chairman Lee Eog-weon of the Financial Service Commission met with Standard Chartered Group CEO Bill Winters at his office in Seoul Government Complex on March 13. At the meeting, FSC Chairman Lee and SC Group CEO Winters exchanged views on the global impact of deepening geopolitical crisis in the Middle East. While speaking about uncertainties regarding the Middle East situation, SC CEO Winters spoke about the need for comprehensive response from governments and expressed interest in the Korean governments swift and agile response measures. In this regard, FSC Chairman Lee gave explanations on how the Korean government has been handling and responding to the situationby operating a 24-hour monitoring system led by a joint inter-agency taskforce and ensuring an active implementation of the KRW100 trillion-plus market stabilization programsto ensure financial market stability and minimize impact on the real economy. SC Group CEO Winters also expressed interest in the strong performance shown by Korean stock markets recently. In this regard, FSC Chairman Lee shared key policy directions regarding the Korean governments productive finance initiative and asked for continuous support from SC Group. * Please refer to the attached PDF for details.
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Mar 12, 2026

Revised Rules on Telecom-based Financial Fraud to Bolster Response against Vishing Scams Involving Virtual Assets

The Financial Services Commission announced that a revision bill for the Special Act on the Prevention of Loss Caused by Telecommunications-based Financial Fraud and Refund for Loss (the Act hereinafter) was passed by the National Assembly at the plenary session held on March 12. Background With vishing scams becoming more sophisticated, there is a growing number of cases in which scammers are stealing virtual assets from victims directly or using virtual assets for laundering the money stolen from victims. However, despite the fact that virtual asset exchange service providers are being exploited in such criminal activities, there was no legal foundation so far to effectively cut off the flow of criminal proceeds or provide remedies for victims. In this regard, the revised Act establishes a regulatory foundation to close the loophole for virtual asset exchange service providers and bolster remedies for vishing related loss and damage. Key Revision Details First, virtual asset exchange service providers will be required to have the same level of vishing prevention and damage and loss relief measures in place as in the case with financial companies. Unlike banks or securities companies that are required by law to regularly monitor suspicious transactions activities related to vishing scams, which allow them to take preventive measures, virtual asset exchange service providers are not obligated to follow such steps under the existing regulatory framework, which prevented them from taking swift actions in response to vishing scams. As such, the revised Act will make virtual asset exchange service providers subject to the same level of anti-vishing and damage and loss relief duty that is currently in place for financial companies. In this regard, virtual asset exchange service providers will be required to verify the purpose of virtual asset transactions, monitor suspicious transactions related to vishing scams, freeze account activities when suspected to be involved in
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Mar 11, 2026

Household Loans, February 2026

In February 2026, the outstanding balance of household loans across all financial sectors increased KRW2.9 trillion (preliminary), growing at a faster pace compared with the previous month (up KRW1.4 trillion). (By Type) Home-backed mortgage loans rose KRW4.2 trillion, growing at a faster pace compared with the previous month (up KRW3.0 trillion). Mortgage loans turned back up in the banking sector (down KRW0.6 trillion up KRW0.4 trillion) and expanded at a slightly faster pace in the nonbanking sector (up KRW3.6 trillion up KRW3.8 trillion). Other types of loans edged down KRW1.2 trillion, declining at a slower pace compared with the previous month (down KRW1.6 trillion), as credit loans dropped at a slower pace (down KRW1.1 trillion down KRW1.0 trillion). (By Sector) In February 2026, household loans in the banking sector saw a drop of KRW0.3 trillion, declining at a slower pace compared with the previous month (down KRW1.0 trillion). Banks own mortgage loan products fell at a slower pace (down KRW1.7 trillion down KRW1.1 trillion), while policy-based mortgage loans rose at a faster pace (up KRW1.1 trillion up KRW1.5 trillion). Other types of loans including credit loans declined at a faster pace (down KRW0.4 trillion down KRW0.7 trillion). In the nonbanking sector, household loans rose KRW3.3 trillion, growing at an expanded level from a month ago (up KRW2.5 trillion). Mutual finance businesses (up KRW2.3 trillion up KRW3.1 trillion) saw household loans edging up more rapidly, while insurance companies (down KRW0.2 trillion up KRW0.2 trillion) and specialized credit finance businesses (down KRW0.01 trillion up KRW0.1 trillion) saw household loans growing back up from declines seen a month ago. Savings banks (up KRW0.3 trillion down KRW0.1 trillion) saw household loans edging back down from an increase seen in the previous month. (Assessment) In February 2026, the outstanding balance of household loans edged up KRW2.9 trillion led by an expanded level of growth se
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Mar 06, 2026

FSC Provides Statutory Interpretations to Support Shareholder Activities of Institutional Investors

The Financial Services Commission provided statutory interpretations on the large shareholding reporting rule (so-called 5% rule) on March 6 to facilitate shareholder activities of institutional investors ahead of the end of March season of annual general meeting of shareholders in Korea. Background Shareholder activities of institutional investors to exercise fiduciary duties according to the stewardship code and help enhance corporate value have been growing in importance as part of bringing about further advancement to the capital market. Under the current capital market law, shareholding of 5 percent or more or a change of 1 percent or more thereafter and changes in the shareholding purpose should be reported to the FSC and the Korea Exchange (KRX) within five days of such changes taking place. However, when the purpose of shareholding is not influencing corporate management, there are eased disclosure procedures (longer deadline and abridged form for reporting) available. In this regard, there have been legal uncertainties concerning what types of shareholder activities constitute the purpose of influencing corporate management, and there have been requests from institutional investors to provide clearer interpretations on this. Key Details a) Improving the culture of general shareholder meeting A statutory interpretation is provided to clearly indicate that institutional investors shareholder activities aimed at improving the culture of general shareholder meetings, such as making a demand for early disclosure of agenda items and requesting detailed explanations on certain issues, do not constitute the purpose of influencing corporate management, insofar as the activities are not aimed at bringing about changes to the articles of incorporation. In other countries, general shareholder meetings are often used as a venue where companies provide detailed explanations on agenda items to their shareholders and have active engagement and discussions for communication
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Mar 05, 2026

Revised Rules on BDCs for Promoting Investment in Venture Businesses to Take Effect from March 17

The Financial Services Commission announced that the legislative and regulatory revisionsprocessintended to establish rules on business development companies (BDCs)has been completedon March5. Under the auspices of the Financial Investment Services and Capital Markets Act (FSCMA), the revised rules to the Enforcement Decree of the FSCMA, the supervisory regulations on financial investment business, and the KOSDAQ market regulations of the Korea Exchange (KRX) will take effect from March 17, 2026, along with the revised FSCMA. Key Revision Details Rules regarding the operation of BDCs BDCs will be required to invest at least 60 percent of total assets in their primary investment targets, such as unlisted startups or venture businesses, venture investment associations, and KONEX-listed or KOSDAQ-listed businesses. In order to promote reinvestments in the venture investment market after the recovery of initial investment, BDCs will be allowed to invest in venture associations and the KOSDAQ-listed companies that have market capitalization of up to KRW200 billion (which constitutes about 75 percent of all KOSDAQ-listed companies). However, to help prevent the potential of concentration toward certain sectors, only up to 30 percent of investments made in venture associations and KOSDAQ-listed companies each will be counted toward the calculation of the minimum investment requirement of 60 percent. Investments can take the form of either purchasing shares or lending money. Share purchases will be limited to stocks and equity-linked bonds (convertible bonds, exchangeable bonds, and bonds with warrants). The proportion of money lending to the total amount of investments on primary investment targets should be limited to maximum 40 percent. In addition, the establishment of internal control mechanisms is required to ensure the appropriateness of money lending and the assessment and management of credit risks. BDCs will be required to invest at least 10 percent of total asset
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