Press Releases - Financial Services Commission

Press Releases

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Dec 13, 2023

Household Loans, November 2023

The outstanding balance of household loans across all financial sectors increased KRW2.6 trillion in November 2023 (preliminary), showing a significant decline from the level of growth in the previous month (up KRW6.2 trillion). * Change (%, y-o-y): +2.6 (May 2023), +3.2 (Jun), +5.2 (Jul), +6.1 (Aug), +2.4 (Sep), +6.2 (Oct), +2.6 (Nov) (By Type) Home-backed mortgage loans rose KRW5.6 trillion, edging up slightly more than the previous month (up KRW5.2 trillion). Mortgage loans rose KRW5.7 trillion in the banking sector but fell KRW0.1 trillion in the nonbanking sector. Other types of loans dropped KRW3.0 trillion led by non-housing mortgage loans and savings secured loans in the mutual finance sector. (By Sector) Household loans grew at a slower rate in the banking sector and fell at a faster rate in the nonbanking sector compared to the previous month. Banks saw an increase of KRW5.4 trillion in household loans in November, which shows a slowdown from the June-September period (up KRW6.0 trillion to up KRW7.0 trillion), led mostly by policy mortgage loans and group lending for non-speculative homebuyers. Other types of loans fell KRW0.3 trillion, edging down from an increase of KRW1.0 trillion a month ago. Nonbanks saw a drop of KRW2.8 trillion in household loans, falling at a faster rate compared to the previous month (down KRW0.5 trillion), led by mutual finance unions (down KRW2.8 trillion), savings banks (down KRW0.1 trillion) and specialized credit finance businesses (down KRW0.01 trillion). Insurance companies saw a rise of KRW0.1 trillion in household loans. The declining pace of growth in household loans in November was caused by a slowdown in mortgage lending in the banking sector. However, the authorities will continue to closely monitor trends of household loans and ensure effective implementation of the household loan management measures, through introduction of a stressed debt service ratio (DSR) limit and so on. * Please refer to the attached file for
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Nov 13, 2023

Campaign to Return KRW17.9 Trillion in Unclaimed Financial Assets Begins

The Financial Services Commission announced that a campaign to return unclaimed or dormant financial assets worth about KRW17.9 trillion to financial consumers will begin on November 13 for six weeks until December 22 with participation from all financial sectors. Unclaimed financial assets, such as dormant financial accounts, inactive financial accounts (for more than 3 years) and card points (cash back rewards, etc.), amounted to KRW1.6 trillion, KRW13.6 trillion and KRW2.6 trillion, respectively, for a total of KRW17.9 trillion as of the end of June 2023. In this year, the number of financial institutions participating in the campaign has been expanded as the mutual finance sector will also join the joint campaign effort. In addition, this year, consumers will be able to see if there are any remaining balances on their securities investment accounts alongside other types of unclaimed financial assets from checking and savings accounts, insurance benefits or card points. Access to unclaimed financial assets is available on the internet (fine.fss.or.kr) or on the Account Info mobile app. The financial authorities will continue to upgrade the dormant financial account management system to help consumers to more easily and conveniently search and claim their dormant assets. * Please refer to the attached file for details.
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Nov 08, 2023

Household Loans, October 2023

The outstanding balance of household loans across all financial sectors increased KRW6.3 trillion in October 2023 (preliminary), rising at a faster rate compared to the previous month. * Change (%, y-o-y): +0.1 (Apr 2023), +2.6 (May), +3.2 (Jun), +5.2 (Jul), +6.1 (Aug), +2.4 (Sep), +6.3 (Oct) (By Type) Mortgage loans grew at a somewhat slower rate while other types of loans expanded at a faster pace. Home-backed mortgage loans rose KRW5.2 trillion as nonbanks saw a drop of KRW0.6 trillion and the pace of growth in the banking sector also declined from KRW6.1 trillion a month ago to KRW5.8 trillion. Other types of loans rose KRW1.1 trillion with a low base effect from the previous month (down KRW3.3 trillion). (By Sector) Household loans expanded more rapidly in the banking sector while the pace of decline in the nonbanking sector slowed from a month ago. Banks saw an increase of KRW6.8 trillion of household loans in October, going up from KRW4.8 trillion a month ago. Mortgage loans went up KRW5.8 trillion in the banking sector, mainly led by policy mortgage loans. Other types of loans rose KRW1.0 trillion in the banking sector with credit loans edging up KRW1.2 trillion from a drop of KRW1.3 trillion in the previous month due to seasonal factors such as moving season and demand for IPO subscription. In the nonbanking sector, household loans dropped KRW0.5 trillion overall, showing a slowing pace of decline from the previous month (down KRW2.5 trillion). Specialized credit finance businesses (up KRW0.7 trillion), insurance companies (up KRW0.4 trillion) and savings banks (up KRW0.1 trillion) saw household loans going up, while mutual finance businesses continued to see a decline (down KRW1.7 trillion). Although the accelerated pace of household loan growth in October appears to be caused by a low base effect from a month ago, the financial authorities will continue to closely monitor trends and ensure close management of the growth level. Meanwhile, the authorities p
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Oct 16, 2023

Authorities Propose Measures to Improve Pet Insurance Services

The Financial Services Commission introduced a set of proposed measures that will help bring about improvements to pet insurance services on October 16, announced jointly with the relevant government ministries. The measures to improve pet insurance services are intended to address the following(a) ensuring stable operation of pet insurance services based on a reasonable veterinary fee rates system; (b) creating a one-stop service enabling pet owners to sign up for pet insurance, file for insurance claims; manage health conditions of their pets and register their pets all from a single place; (c) improving the structure of pet insurance products and developing new products tailored to the needs of pets and their owners; and (d) allowing insurers specializing in pet insurance to operate in the market. The FSC and the Ministry of Agriculture, Food and Rural Affairs will continue to maintain close communication with the relevant authorities and industries to ensure effective implementation of the proposed measures. In this process, the authorities will particularly work on boosting cooperation between the veterinary and insurance industries in order to bring about improvements and reduce inconveniences in the provision of veterinary and pet insurance services to consumers. * Please refer to the attached file for details.
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Oct 12, 2023

Household Loans, September 2023

The outstanding balance of household loans across all financial sectors rose KRW2.4 trillion in September 2023 (preliminary), growing at a slower rate than the previous month. Compared to a year ago, household loans dropped 0.3 percent. * Change (in trillion KRW): +0.2 (Apr 2023), +2.8 (May), +3.5 (Jun), +5.3 (Jul), +6.1 (Aug), +2.4 (Sep) (By Type) Home mortgage loans continued to grow but at a slower rate, while other types of loans fell at an expanded level. Mortgage loans rose KRW5.7 trillion overall with a fall of KRW0.4 trillion in the nonbanking sector and an increase of KRW6.1 trillion in the banking sector. Mortgage loans from banks expanded at a slower rate compared to the previous month (up KRW7.0 trillion). Other types of loans dropped KRW3.3 trillion overall with declines seen from both the banking (down KRW1.3 trillion) and nonbanking (down KRW2.1 trillion) sectors. (By Sector) Household loans grew at a slower rate in the banking sector, while decreasing at a faster rate in the nonbanking sector. Banks saw a rise of KRW4.9 trillion of household loans in September, down from an increase of KRW6.9 trillion in the previous month. Mortgage loans in the banking sector grew KRW6.1 trillion overall with group lending for new apartment subscription (up KRW0.3 trillion) and jeonse loans (up KRW0.1 trillion) going up at slightly faster rates and individual mortgage loans (up KRW3.6 trillion) and policy mortgage loans (up KRW2.1 trillion) rising at slower rates. Other types of loans declined KRW1.3 trillion as credit loans dropped at a faster rate (down KRW1.2 trillion). Household loans in the nonbanking sector dropped KRW2.5 trillion overall, edging down at a faster rate than the previous month (down KRW0.8 trillion). Insurance companies (up KRW0.3 trillion) saw an increase in household loans, but mutual financial companies (down KRW1.9 trillion), savings banks (down KRW0.1 trillion) and specialized credit finance businesses (down KRW0.8 trillion) all saw drops i
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Oct 10, 2023

KoFIU Unveils H1 2023 Survey Result on Virtual Asset Service Providers

The Korea Financial Intelligence Unit (KoFIU) conducted a survey on 35 registered virtual asset service providers (VASPs) to see the current state of the domestic virtual asset market and keep relevant statistics up to date. Survey Overview (Respondents) 35 VASPs (26 exchange service providers and 9 other businesses) (Survey Method) Data collected from VASPs (Period Covered) January 1, 2023 to June 30, 2023 Key Survey Findings for H1 2023 The domestic market for virtual assets in H1 2023 saw increases in terms of market capitalization, deposit (in KRW) and the exchange service providers operating profits as virtual asset prices rose and investment sentiment recovered. Among 21 coin-only exchange service providers, continuing business operation appears to be difficult for 10 of them as they showed no record of sales from transaction fees. The market capitalization at the end of June 2023 stood at KRW28.4 trillion, up 46 percent from KRW19.4 trillion at the end of 2022. In the same period, the amount of deposits (in KRW) also increased to KRW4.0 trillion, up 11 percent from KRW3.6 trillion at the end of 2022. The operating profits of VASPs amounted to KRW227.3 billion in the first half of 2023, up 82 percent from KRW124.9 billion during the previous six months. According to the survey, the frequency of new coin listings and trading suspensions (due to delisting) also increased. There were 169 new virtual asset listings in the first half of 2023, up 128 percent from 74 new listings in the previous six months. The number of delisted coins also rose during the same period from 78 in H2 2022 to 115 in H1 2023. There were 622 different types of virtual assets being circulated in the domestic market in H1 2023 and 366 of them were virtual assets listed exclusively by single exchange service providers. Despite a recovery seen in the virtual asset market, the volume of domestic virtual asset transactions and the number of users declined somewhat. Between H2 2022 and H1 2023,
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Oct 04, 2023

FSC Chairman Visits Japan with Aims to Strengthen Bilateral Cooperation in Financial Sectors

Chairman Kim Joo-hyun of the Financial Services Commission visited Japan from October 2 to 4 in a move to strengthen bilateral cooperation in financial sectors. On his trip, Chairman Kim held a meeting with his Japanese counterpart at the Financial Services Agency (FSA) and agreed to resume the shuttle meeting between the financial authorities of two countries. Chairman Kim also took part in the Nikkei Sustainable Forum to deliver a speech and attended the first ever Korea-Japan collaboration startup fund launching event and held talks with Korean financial companies doing business in Japan. Meeting with Korean financial companies operating in Japan While meeting with the Korean banks, insurance companies and financial investment businesses operating in Japan, Chairman Kim held talks on the financial industry and market situation in Japan, business operation of each company and their challenges and suggestions. Emphasizing on the need to have active cooperation from the private sector, Chairman Kim said that bilateral cooperation between Korea and Japan is expanding beyond the traditional security and diplomatic domains into other areas. By maintaining close communication with the FSA of Japan, Chairman Kim said that the FSC will work to resolve business challenges experienced by Korean financial companies doing business in Japan and actively support cooperation between financial companies of two countries. Nikkei Sustainable Forum Attending the Nikkei Sustainable Forum, which was held as part of the Japanese governments Japan Weeks event, Chairman Kim delivered closing remarks where he talked about the importance of strengthening financial cooperation between the two countries in the areas of startup and venture businesses where they have high growth potentials. Korea-Japan banking industry MOU and joint seminar Chairman Kim attended the Korea-Japan banking industry groups MOU signing event and joint seminar on green and digital transformation and delivered congrat
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Oct 03, 2023

Financial Authorities of Korea and Japan Agree to Hold Meetings Regularly

Chairman Kim Joo-hyun of the Financial Services Commission held a meeting with Japans Financial Services Agency Commissioner Teruhisa Kurita on October 3. The meeting between the chief financial authorities of two countries is the first time in eight years since 2015. After the meeting, the financial authorities of Korea and Japan released a joint press statement underlining the significance of the meeting as a start of resuming the so-called shuttle meeting between the financial authorities of two countries against the backdrop of a normalizing bilateral relationship between the two countries. Joint Press Release 1. The Chairman of the Financial Services Commission (FSC) of the Republic of Korea, KIM Joo-hyun and the Commissioner of the Financial Services Agency (FSA) of Japan, KURITA Teruhisa met in Tokyo today. 2. At the meeting, they agreed to resume the Shuttle Meeting and tomeet regularly between the financial authorities of the two countries. The meeting will be held in Seoul, Korea on December 19 and 20, 2023 and it will be the first meeting since 2016. 3. They agreed that sharing experiences and exchanging views on issues of their mutual interest, such as climate change and digitalization of financial services would be useful. They also discussed possible areas for deepening their cooperation aimed at safeguarding financial stability and fostering the financial markets of both countries. 4. They welcomed the Joint Seminar between the Japan Bankers Association and the Korea Federation of Banks held today, and hope the financial institutions of both countries to continue their constructive discussions towards further improvements in the quality of their financial services. * Please refer to the attached file for details.
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Sep 13, 2023

Household Loans, August 2023

The outstanding balance of household loans across all financial sectors rose KRW6.2 trillion in August 2023 (preliminary), going up for the fifth consecutive month. Compared to the same month of the previous year, household loans dropped 0.5 percent. * Change (in trillion KRW): -5.1 (Feb 2023), -5.1 (Mar), +0.2 (Apr), +2.8 (May), +3.5 (Jun), +5.3 (Jul), +6.2 (Aug) (By Type) Home mortgage loans continued to grow but other types of loans fell at a greater pace. Mortgage loans rose KRW6.6 trillion overall with a drop of KRW0.4 trillion in the nonbanking sector and an increase of KRW7.0 trillion in the banking sector. Other types of loans decreased KRW0.4 trillion as banks and nonbanks both saw drops of KRW0.1 trillion and KRW0.3 trillion, respectively. sector. Banks saw a rise of KRW6.9 trillion of household loans in August, an increase for five straight months. Home mortgage loans went up KRW7.0 trillion in the banking sector, despite a fall of KRW0.1 trillion in jeonse loans, as individual mortgage loans (up KRW4.1 trillion), policy mortgage loans (up KRW2.7 trillion) and group lending for new apartment subscription (up KRW0.2 trillion) all went up. Other types of loans dropped KRW0.1 trillion as credit loans grew (up KRW0.03 trillion) at a slower pace. Household loans in the nonbanking sector declined KRW0.7 trillion overall. Insurance companies and specialized credit finance businesses saw increases of KRW0.3 trillion and KRW0.6 trillion, respectively, while mutual finance companies and savings banks saw drops of KRW1.5 trillion and KRW0.1 trillion, respectively. Household loans continued to grow in August led by home mortgage loans in the banking sector. By encouraging lenders to carry out credit evaluation based on individual borrowers payment capability and conducting on-site inspections on banks household loans, the authorities will work to ensure stable management of household loans throughout the second half of this year. * Please refer to the attached file f
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Sep 11, 2023

FSC Vice Chairman Holds Investor Relations in Hong Kong to Promote Investment in Korean Capital Markets

Vice Chairman Kim So-young of the Financial Services Commission visited Hong Kong on September 8 on the final leg of his weeklong trip to Indonesia, Vietnam and Hong Kong intended to boost financial cooperation with the region. IR event with Global Investors Vice Chairman Kim held an IR event for global investors to explain key policy updates regarding recent improvements made to Koreas capital and foreign exchange markets. Since the beginning of this year, the government has introduced a series of regulatory reform measures intended to increase regulatory consistency with global standards and improve investment environment for global investors. The government has been making continuous efforts to communicate with various stakeholders to inform its reform measures. As a part of this effort, an IR event was held in Hong Kong to attract more capital inflows into Korean capital markets and facilitate companies to raise funds. About 40 participants from 20 global asset management companies and insurance companies attended the event showing a high level of interest. Vice Chairman Kim gave a comprehensive presentation on the governments key market reform efforts, including the abolishment of foreign investors registration requirement, improvements made to companies dividend payout procedure, adoption of an ex-ante disclosure rule for insider transactions and so on. Vice Chairman Kim then underscored the governments strong willingness to make changes to capital markets and upgrade investment environment to ensure a virtuous cycle from investment to growth to reinvestment. Global investors in attendance had favorable views about the event, saying that it was such a great opportunity to meet with the regulators in person and exchange opinions on important policies. Meeting with Deputy Chief Executive of Hong Kong Monetary Authority Vice Chairman Kim held a meeting with Deputy Chief Executive Arthur Yuen of the Hong Kong Monetary Authority to exchange views on recent global m
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Sep 08, 2023

FSC Vice Chairman Visits Vietnam to Strengthen Cooperation on Digital Finance

Vice Chairman Kim So-young of the Financial Services Commission visited Vietnam on September 6-7 on a second leg of his weeklong trip to Southeast Asia intended to promote export of Korean financial services infrastructure and boost cooperation with the region. Vietnam is one of the countries hosting a large number of Korean financial companies with significant interest in fintech and digital finance. As of the end of March 2023, there were some 58 local branches operated by 44 Korean financial companies. Meeting with Korean financial companies operating in Vietnam On September 6, Vice Chairman Kim So-young held a meeting with a group of Korean financial companies doing business in Vietnam and held talks on Vietnams financial industry and market trends, their business operations and challenging aspects. Total 15 companies attended the meeting in which they raised issues such as regulatory hurdles related to delay in licensing, lack of clarity in regulatory guidelines, etc. In this regard, Vice Chairman Kim said that the Korean government plans to boost support for financial companies business expansion and operations overseas and make efforts to strengthen cooperation with the local regulatory authority to help alleviate their operational difficulties. Fintech demo day in Ho Chi Minh City The FSC and the Fintech Center Korea hosted a fintech demo day in Ho Chi Minh City on September 6, which was the first fintech demonstration event held overseas since the easing of the pandemic. Total 11 fintech companies from both countries showcased innovative fintech services to an audience of about 100 participants. Vice Chairman Kim So-young delivered congratulatory remarks at the event, highlighting the importance of Vietnam as a crucial export destination and production base for many Korean companies and expressing his expectations for building a mutually beneficial and cooperative relationship and network between the fintech firms and financial institutions of both countrie
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Sep 06, 2023

FSC Vice Chairman Visits Indonesia to Bolster Export Financing Support and Strengthen Financial Cooperation

Vice Chairman Kim So-young of the Financial Services Commission visited Indonesia on September 4-5 on his weeklong trip to Southeast Asian countries to boost financial cooperation and promote export of Korean financial infrastructure models. Korea-Indonesia Financial Cooperation Forum On September 4, Vice Chairman Kim attended the Korea-Indonesia Financial Cooperation Forum hosted by Indonesias Financial Services Authority (OJK) and Koreas Council on International Financial Cooperation (CIFC). The forum dealt with issues on sustainable finance in both countries and ways to strengthen financial cooperation. In his congratulatory remarks, Vice Chairman Kim highlighted how both countries have been able to maintain close cooperative relationship with each other, and said that the Korean government will continue to make effort to support Korean financial companies to pursue mutually beneficial and sustainable business activities in Indonesia while sharing the experience and know-hows on financial innovation and digital transformation. Meeting with Deputy Chairman of Indonesian Financial Services Authority (OJK) In a meeting with Deputy Chairman Mirza Adityaswara of Indonesias Financial Services Authority, Vice Chairman Kim shared concerns about some of the local regulatory hurdles experienced by Korean financial companies operating their business in Indonesia. Vice Chairman Kim said that Korean financial companies are equipped with the experience and know-hows in successfully supporting the growth of the real economy and leading digital transformation of financial services. Therefore, Vice Chairman Kim said that, together with Indonesias high growth potential, they can achieve a significant synergy in Indonesian markets. Export Finance Support Meeting with Hyundai Motor Vice Chairman Kim visited Hyundai Motors factory in Indonesia and held talks on the recently announced export finance support for the suppliers and subcontractors in the auto industry. At the meeting, Vic
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Aug 09, 2023

Household Loans, July 2023

The outstanding balance of household loans across all financial sectors rose KRW5.4 trillion in July 2023 (preliminary), going up for the fourth consecutive month. Compared to the same month last year, household loans dropped 0.8 percent. * Change (in trillion KRW): -8.1 (Jan 2023), -5.1 (Feb), -5.1 (Mar), +0.2 (Apr), +2.8 (May), +3.5 (Jun), +5.4 (Jul) (By Type) Home-backed mortgage loans grew at a slower pace but the pace of decline in other types of loans also slowed. Mortgage loans rose KRW5.6 trillion, despite a decline of KRW0.4 trillion in the nonbanking sector, as banks saw a rise of KRW6.0 trillion. Other types of loans fell KRW0.2 trillion as both banks and nonbanks saw drops of KRW0.01 trillion and KRW0.2 trillion, respectively. (By Sector) Household loans rose in the banking sector but declined in the nonbanking sector. Banks saw a rise of KRW6.0 trillion of household loans in July, which went up for the fourth straight month. Home mortgage loans went up KRW6.0 trillion in the banking sector as individual mortgage loans (up KRW3.9 trillion) and policy mortgage loans (up KRW2.4 trillion) increased. Jeonse loans (down KRW0.2 trillion) and group lending for new apartment subscription (down KRW0.1 trillion) declined. Other types of loans fell KRW0.01 trillion in the banking sector. Household loans in the nonbanking sector declined KRW0.6 trillion due to a drop of KRW1.6 trillion in the mutual finance sector, although insurance companies (up KRW0.5 trillion), savings banks (up KRW0.1 trillion) and specialized credit finance businesses (up KRW0.5 trillion) saw growths. As the growth of household loans has been picking up since April with the volume of housing transactions recovering recently, the financial authorities will closely monitor trends in household loans and work to prepare preemptive measures to stably manage the growth of household loans. * Please refer to the attached file for details.
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Jul 19, 2023

FSC Grants Preliminary Approval to Nextrade for Operating Alternative Trading System

The Financial Services Commission decided to grant a preliminary approval to Nextrade Co., Ltd. to operate an alternative trading system (ATS) at the 14th regular meeting held on July 19. The financial authorities have been seeking to introduce ATS platforms to enhance competition between exchanges and promote innovation in capital markets, and this is the first time that authorities are granting a preliminary approval since the legal framework on ATS was first established in 2013. After a review, the FSC found that Nextrade Co., Ltd. met all licensing requirements specified by the Financial Investment Services and Capital Markets Act (FSCMA) and an external review committee also approved the companys qualifications to operate an ATS. Considering the time it is expected to take for preparing a stable network system, Nextrade Co., Ltd. will be given eighteen months from the day of preliminary approval to apply for final authorization. * Please refer to the attached file for details.
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Jul 12, 2023

Household Loans, June 2023

The outstanding balance of household loans across all financial sectors went up KRW3.5 trillion in June 2023 (preliminary), rising for the third consecutive month. Compared to the same month last year, household loans fell 1.2 percent. * Change (in trillion KRW): -3.4 (Dec 2022), -8.1 (Jan 2023), -5.1 (Feb), -5.1 (Mar), +0.2 (Apr), +2.8 (May), +3.5 (Jun) (By Type) Home-backed mortgage loans edged up for four months in a row but other types of loans declined at a faster pace in June. Mortgage loans rose KRW6.4 trillion, with a drop of KRW0.6 trillion in the nonbanking sector and an increase of KRW7.0 trillion in the banking sector. Other types of loans fell KRW2.9 trillion as both banks and nonbanks saw drops of KRW1.1 trillion and KRW1.8 trillion, respectively. (By Sector) Household loans rose in the banking sector but declined in the nonbanking sector. Banks saw a rise of KRW5.9 trillion of household loans in June, which went up for the third straight month. Home mortgage loans went up KRW7.0 trillion in the banking sector as individual mortgage loans (up KRW3.7 trillion), policy mortgage loans (up KRW2.6 trillion), jeonse loans (up KRW0.1 trillion) and group lending for new apartment subscription (up KRW0.7 trillion) all increased. Other types of loans fell KRW1.1 trillion due to a drop in credit loans (down KRW0.9 trillion). The growth of mortgage loans in the banking sector seems to be caused by rising supply of special Bogeumjari Loan for non-speculative homebuyers and housing transactions rebounding in certain areas. However, as the volume of housing transactions is yet to bounce back to the level seen in previous years and with a significant number of mortgage borrowers taking out loans to return jeonse deposit money or for living expenses, the current pace of growth in home mortgage loans is not at an alarming level as to cause overheated speculation in the housing market. Nonbanks saw a drop of KRW2.4 trillion in household loans with a slight increase in th
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Jun 27, 2023

Campaign to Return KRW12.4 Trillion in Unclaimed Insurance Money to Begin in September

The Financial Services Commission along with the insurance industry returned about KRW3.9 trillion in unclaimed insurance money to their policyholders in 2022 and plan to send out postal mail in September to inform relevant policyholders about KRW12.4 trillion in unclaimed insurance money still remaining. This campaign to return unclaimed insurance money has been in place since 2017 and over the past five years more than KRW16.8 trillion worth of dormant insurance money has been returned to the policyholders (KRW3.85 trillion in 2022). Meanwhile, the FSC, the insurance sector and the Korea Inclusive Finance Agency (KINFA) plan to shorten the period for transferring dormant insurance money to KINFA by about one year starting from 2024. Insurance companies transfer dormant insurance money to KINFA pursuant to the Microfinance Support Act as a form of contribution. Therefore, for insurance companies, the period to make this transfer of dormant insurance money occurring within this year will be reduced from February the year after next year (2025) to May (expected) next year (2024). Once transferred to KINFA, dormant insurance money can be traced and retrieved along with other types of dormant financial assets on KINFAs mobile app or website. * Please refer to the attached file for details.
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Jun 26, 2023

KRW300 Billion Fund to be Newly Created to Enhance Competitiveness of Semiconductor Industry

FSC Vice Chairman Kim So-young held the 3rd consultative body meeting on policy finance support with the relevant government ministries and policy financial institutions on June 26. At the meeting, authorities checked the progress of funding supply to five major strategic sectors between January and May this year and discussed offering a preferential funding supply process for outstanding businesses in each industrial sector. Between January and May 2023, policy financial institutions such as the Korea Development Bank, the Industrial Bank of Korea and the Korea Credit Guarantee Fund supplied a total of KRW46.3 trillion in funding support to the five major strategic industrial sectors, which amounted to about 50.5 percent of the total of KRW91 trillion targeted for the whole year. At the meeting, authorities also discussed ways to select outstanding businesses in each industrial sector in order to more effectively provide targeted funding support for businesses that fit the direction of the governments industrial policy strategies. In this regard, a comprehensive checklist has been prepared for selecting outstanding businesses and the checklist-qualified enterprises will be eligible to receive the benefit of a fast-tracked credit evaluation process. After having an inter-ministerial consultation process, authorities have already prepared a checklist on eleven industrial sectorsfor now and plan to review whether to expand the eligibility to additional industrial sectors in the future when drawing up a policy finance support plan for 2024. Prior to todays meeting, Vice Chairman Kim and First Vice Minister of the Ministry of Trade, Industry and Energy Jang Youngjin held an agreement ceremony to launch a KRW300 billion worth of fund intended to make targeted investments in the domestic semiconductor ecosystem along with key chip makers and policy financial institutions. The newly created fund will invest in semiconductor materials, parts and equipment manufacturing busi
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Jun 21, 2023

FSC Approves Financial Hub Development Plan for 2023-2025

The Financial Services Commission held the 12th regular meeting on June 21 and finalized the 6th financial hub development plan for 2023-2025. The 6th three-year plan to promote financial hubs in Korea contains the following four key task areas which will allow the government and the financial sector to quickly respond to the changing global financial environment and actively make use of the areas where the Korean financial industry has a comparative advantage. Task #1: Continue to seek innovation in financial regulations and boost support for fintech businesses to enhance global competitiveness of Korean financial companies amid digital transformation. Task #2: Establish relevant infrastructure to be able to make the most use of the changing trends in financial environment and revamp the foreign exchange trading system. Task #3: Overhaul regulations to help increase global investors investment in domestic capital markets and boost global competitiveness of capital markets and asset management market. Task #4: Make utmost use of the financial industry globalization taskforce to provide active support for domestic financial companies business expansion overseas and to create synergetic effects with the efforts to promote foreign financial companies entry in domestic market. * Please refer to the attachmentfor details.
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Jun 15, 2023

FSC Holds Financial Cooperation Forum with Thailand and Attends IOSCO Annual Meeting

The Financial Services Commission held the Korea-Thailand Financial Cooperation Forum and attended the 48th annual meeting of the International Organization of Securities Commission (IOSCO) held in Bangkok, Thailand on June 12-15. Korea-Thailand Financial Cooperation Forum The FSC held the Korea-Thailand Financial Cooperation Forum with the Bank of Thailand and the Council on International Financial Cooperation on June 13. The forum was attended by about a hundred regulatory authorities and relevant officials from both countries, and the participants held discussions on (a) the current status of financial markets and banking industry in both countries and (b) ways to increase bilateral cooperation on financial innovation and development. At the forum, Securities and Futures Commission (SFC) Standing Commissioner Kim Jeong-kag of the FSC delivered congratulatory remarks and talked about the importance of bilateral cooperation between the two countries. In his speech, Standing Commissioner Kim said that Koreas experience with online-only banks, open banking and financial MyData services can offer valuable examples regarding digital transformation of the financial sector and that Korean financial institutions are very much willing to participate and contribute to Thailands virtual banking initiative. IOSCO Annual Meeting The FSC and the FSS attended the 48th IOSCO annual meeting held on June 12-15. At this years meeting, the member countries held discussions on various capital market issues such as sustainable finance, managing fund liquidity risks, private equity financing, leveraged loans and collateralized loan obligations (CLOs). Regarding the issue of the IOSCO Board officially endorsing the sustainability disclosure standards prepared by the International Sustainability Standards Board (ISSB), the Korean delegation agreed with the suggestion for endorsement in principle but added that due to different regulatory and industry preparation in each member country, th
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Jun 09, 2023

Household Loans, May 2023

The outstanding balance of household loans (preliminary) across all financial sectors went up KRW2.8 trillion in May 2023, which rose for the second consecutive month. Financial authorities will closely monitor trends in household debt and work to ensure stable management of household loans. (Overall) Household loans across all financial sectors rose KRW2.8 trillion in May 2023, but the year-on-year growth rate edged down 1.4 percent, showing a continuous trend of declining balance on year since November 2021. (By Type) Mortgage loans grew at a faster pace for the third consecutive month and other types of loans declined at a slower rate for three month in a row. Mortgage loans went up KRW3.6 trillion, despite a decline of KRW0.6 trillion in the nonbanking sector, as banks saw an increase of KRW4.3 trillion. Other types of loans fell KRW0.8 trillion as both the banking and nonbanking sectors saw a drop of KRW0.02 trillion and KRW0.8 trillion each. (By Sector) Household loans rose in the banking sector but fell in the nonbanking sector. Household loans in the banking sector increased KRW4.2 trillion in May, edging up for the second straight month. Mortgage loans from banks grew KRW4.3 trillion, despite a drop in jeonse loans (down KRW0.6 trillion), as the volume of policy mortgage loans (up KRW2.8 trillion), general individual mortgage loans (up KRW2.0 trillion) and group lending for new apartment subscription (up KRW0.1 trillion) increased. Other types of loans in the banking sector declined (down KRW0.02 trillion) at a slower pace compared to a month ago (down KRW0.5 trillion) as credit loans expanded from a fall in the previous month (down KRW0.6 trillionup KRW0.03 trillion). Nonbanks saw a drop of KRW1.4 trillion in household loans with slight increases in the insurance (up KRW0.4 trillion) and specialized credit finance (up KRW0.4 trillion) sectors but declines in mutual finance (down KRW2.2 trillion) and savings banks (down KRW0.03 trillion). The pace of declin
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