Press Releases - Financial Services Commission

Press Releases

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Mar 11, 2024

Application for Interest Refunds from Nonbank Lenders to be Available for Small Merchants from March 18

The Financial Services Commission (FSC) and the Ministry of SMEs and Startups (MSS) announced that small merchants who borrowed from nonbank financial institutions with interest rates ranging from 5 percent to 7 percent as of December 31, 2023 will be able to apply for interest refunds from their lenders starting from March 18. From March 13, the nonbank financial institutions, such as savings banks, mutual finance businesses, and specialized credit finance businesses, will start notifying their customers about the availability of this interest refund support program through their website or via mobile text message. Borrowers who are eligible to receive interest refunds will be able to apply starting from March 18. Interest refunds will begin to be paid out starting from March 29. For a borrower to be eligible to receive interest refunds, he or she should have made interest payments for at least a full-year. Once the lender verifies the receipt of a full-year interest payments, the borrower will receive interest refunds within six business days from the last business day of the first quarter that falls after the borrower made full-year interest payments. For those holding multiple loan accounts, interest payments should have been made for a full-year on all of their loan accounts to be eligible for the payback in interest refunds. Thus, borrowers are advised to check whether they have made interest payments for a full-year before applying. The refund rate on loans will vary depending on actual borrowing rates adopted as of the last day of December 2023. For loans with interest rates ranging from 5.0 percent to 5.5 percent, a refund rate of 0.5 percent will be applied. For loans with interest rates ranging from 5.5 percent to 6.5 percent, the refund rate will be determined as a difference between the actual interest rate adopted and 5 percent. For loans with interest rates ranging from 6.5 percent to 7 percent, a refund rate of 1.5 percent will be applied. The maximu
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Mar 06, 2024

Authorities Hold Meeting on Policy Finance to Discuss Operation of KRW5 Trillion Fund for MMEs

The Financial Services Commission held the 6th consultative body meeting on policy finance with related government ministries and policy financial institutions on March 6. FSC Vice Chairman Kim Soyoung presided over the meeting and delivered opening remarks where he emphasized the need for policy financial institutions to frontload the implementation of policy funds as much as possible in the first half of this year in line with the planned frontloading of fiscal spending by the government amid ongoing challenges in the economy. At todays meeting, officials discussed the launching of a fund specifically designed to support middle market enterprises (MMEs). The MME investment fund will be created in the size of about KRW5 trillion with contribution from the banking sector, and it is expected to provide a significant boost to MMEs in their attempt to venture into new industries or expand their operations. Second, officials discussed this years plan for operating the innovative growth fund, which has been set up for operation since last year with aims to boost future growth engines and cultivate innovative venture businesses. For 2023-2027, the innovative growth fund aims to supply KRW15 trillion worth of policy funding support. Last year, despite challenges resulting from high interest rates, the total volume of funds raised at the end of the year surpassed the initial target of KRW3 trillion. For this year, officials decided to raise additional KRW3 trillion for the operation of the innovative growth fund, which will help to facilitate investment in climate related and artificial intelligence technologies. Third, officials discussed ways to refine impact analysis to better examine the effectiveness of policy finance support provided to enterprises through a close input-output analysis performed by Korea Credit Information Services and Korea Institute of Finance. The result of their analysis will be utilized to improve efficiency in the allocation of policy funds supp
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Mar 04, 2024

Rule Changes Proposed for Upgrading Regulation on Corporate Mergers and Acquisitions

The Financial Services Commission issued a preliminary notice of rule changes being proposed for improving regulations on corporate mergers and acquisitions under the Financial Investment Services and Capital Markets Act (FSCMA). The revisions being proposed for the enforcement decree of the FSCMA and its subordinate regulation on the issuance and disclosure of securities contain measures to strengthen disclosure duties, improve the process of external evaluation, and upgrade the method for calculating merger prices. First, with regard to enhancing disclosure duties, the revision proposal mandates listed companies to disclose written statements about their board of directors meetings with details regarding what has been discussed and decided on MA related issues. This will ensure that general shareholders can have access to information regarding corporate MA activities. The board of directors written statement should contain information about the purpose of merger, its anticipated effect, merger price and ratio, as well as any dissenting opinion. The board of directors written statement about MAs should be disclosed as an attachment to the securities registration and material disclosure for that particular year. This will help to ensure more responsibility from boards of directors and increased fairness and transparency in the process of MAs. Second, regarding rules on the external evaluation process, the revision proposal establishes a code of conduct for external evaluation agencies to bolster fairness and credibility. In this regard, external evaluation agencies will be required to maintain their own quality management standards, or otherwise be barred from serving as an external evaluator. Their quality management standards should address issues relating to the maintenance of autonomy, objectivity, and fairness, conflicts of interest, confidentiality, and actions to be taken for misconduct. An external evaluation agency offering third-party evaluation service to
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Feb 27, 2024

FSC Vice Chairman Holds Investor Relations in Singapore and Introduces the Corporate Value-up Program

Vice Chairman Kim Soyoung of the Financial Services Commission held an investor relations event in Singapore with major institutional investors from Asia participating on February 27. During the dialogue, Vice Chairman Kim outlined the governments capital market reform initiatives with a particular attention on the recently announced Corporate Value-up Program, which have gained much interest from both domestic and overseas investors. The following is a summary of Vice Chairman Kims remarks. The Korean governments capital market reform measures have been focused on the following three areas. First, to establish a fair and transparent market order, the government has bolstered measures against unfair trading activities. A temporary ban on short-selling has been put in place to make trading conditions more equal for both retail and institutional investors and to build a completely electronic short-selling transaction system designed to prevent naked short-selling activities. Second, to make Koreas capital markets more accessible to investors, the authorities have already abolished the foreign investors registration requirement, mandated companies to file disclosures in English in phases, and eased the reporting requirement to facilitate the use of omnibus account. To help expand domestic investor base, the government has already decided to repeal the planned introduction of capital gains tax on financial investments and plans to expand tax benefits for individual savings accounts (ISAs). Third, to promote shareholder values in corporate management practices, the government has been consistently working on various measures aimed at protecting the rights of general shareholders. As a consequence, many large companies have now adopted the improved dividend payout procedure in which investors are able to make investment decisions while knowing how much they will receive in dividends. In addition, the Corporate Value-up Program, which was unveiled on February 26, is design
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Feb 26, 2024

FSC Vice Chairman to Visit Singapore and Thailand to Promote Overseas Expansion of Korean Financial Industry

Vice Chairman Kim Soyoung of the Financial Services Commission will travel to Singapore and Thailand on February 26 to 29 to promote overseas expansion of domestic financial industry. Since launching an organization (Financial Industry Globalization Taskforce) in charge of overseeing global expansion of Koreas financial services in March last year, the FSC has been making efforts to boost global exchanges with aims to export domestic financial services. Vice Chairman Kims overseas trip this time will be the third of its kind since last years trips to Central Asia and Southeast Asia, and he plans to actively support overseas expansion of domestic financial sector and attract investment. During the visit to Singapore, one of the important global financial hubs, Vice Chairman Kim along with officials from the Korea Exchange and Korea Securities Depository will hold a roundtable meeting with major institutional investors from overseas and explain about the Korean governments efforts to upgrade capital market regulations. At this roundtable meeting, the Vice Chairman will discuss in detail key points about the Corporate Value-up Program, which has gained significant interest from investors at home and abroad. In Singapore, Vice Chairman Kim will also attend a memorandum of understanding signing event between the banking industry associations of both countries to deliver congratulatory remarks on vibrant exchanges taking place between the two organizations. During his visit to Thailand, Vice Chairman Kim will meet with the heads of the Bank of Thailand and the Securities and Exchange Commission of Thailand and hold talks on developing mutually constructive and friendly relationship between the two countries. In addition, Vice Chairman Kim plans to meet with Korean companies doing business in Thailand to listen to their needs and challenges in doing business there. Vice Chairman Kims visit to Singapore will be very meaningful this time as it will provide an opportunity to
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Feb 14, 2024

Household Loans, January 2024

In January 2024, the outstanding balance of household loans across all financial sectors edged up KRW0.8 trillion (preliminary), a growth of KRW0.6 trillion from the previous month (up KRW0.2 trillion). * Change (in trillion KRW, y-o-y): +6.1 (Aug 2023), +2.4 (Sep), +6.2 (Oct), +2.6 (Nov), +0.2 (Dec), +0.8 (Jan 2024p) (By Type) Home mortgage loans increased KRW4.1 trillion, edging up at a slightly slower rate than the previous month (up KRW5.0 trillion). Mortgage loans from banks rose at a somewhat slower rate (from up KRW5.1 trillion a month before to up KRW4.9 trillion in January 2024). Mortgage loans from nonbanks fell at a faster rate (from down KRW0.1 trillion a month before to down KRW0.8 trillion in January 2024). Other types of loans dropped KRW3.3 trillion. (By Sector) Household loans grew at a somewhat faster rate in the banking sector, while falling at a slower rate in the nonbanking sector. Banks saw a rise of KRW3.4 trillion in January 2024, up from KRW3.1 trillion a month ago. Home mortgage loans from banks grew KRW4.9 trillion, a slowdown from KRW5.1 trillion a month before, due mainly to a significant drop in the issuance of new policy mortgage loans. Other types of loans from banks dropped KRW1.5 trillion, declining at a slower rate than the previous month (down KRW2.0 trillion). Household loans from nonbanks fell KRW2.6 trillion, declining at a slower rate compared to the previous month (down KRW2.9 trillion). Mutual finance businesses and insurance companies saw drops of KRW2.5 trillion and KRW0.5 trillion, respectively, while specialized credit finance businesses and savings banks saw increases of KRW0.4 trillion and KRW0.1 trillion, respectively. (Assessment) Since the level of growth in January 2024 is about a quarter of the monthly average in the second half of last year, the pace of household loan growth remains at a stable level. However, as there are possibilities for changes in the future, financial authorities will keep close tabs on hous
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Jan 31, 2024

FSC Decides on the Method and Procedure for Authorizing a Regional Bank's Transition to Become a Nationwide Operator

The Financial Services Commission held its second regularly scheduled meeting of the year on January 31 and discussed the method and procedure for authorizing a regional banks transition to become a nationwide operator under the Banking Act. On July 5, 2023, the government announced a plan to promote regional banks business expansion to become nationwide banking business operators as a way to spur competition in the banking industry. Under the current licensing system, all nationwide, regional and internet-only banking businesses need to get authorization from the FSC under the Article 8 of the Banking Act. Although most requirements and procedures are same for authorizing the operation of banking business, there are different requirements for minimum capital and maximum shareholding by a non-financial entity. Nonetheless, the Banking Act currently has no explicit provision on the issue of authorizing a regional banks transition to become a nationwide banking business operator. Some have commented in favor of allowing this through changes in the articles of incorporation for expanding the scope of business operation from a specific geographic region to nationwide. However, as this constitutes a critical matter from the standpoint of supervising financial institutions, the FSC finds it inappropriate to allow the transition from a regional bank to a nationwide banking business operator only through changes in articles of incorporation and without having a proper authorization process. Thus, the financial authorities prepared the following method and procedure for authorizing a regional banks transition to a nationwide operator under the current regulatory framework. First, regarding the method for authorizing a transition of a regional banking business to become a nationwide operator, the FSC will apply a modification of conditions specified under the Article 8 of the Banking Act. A new authorization may be utilized to allow a regional banks transition to become a nat
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Jan 30, 2024

FSC Holds Meeting and Announces Measures to Upgrade Rules on Treasury Stocks of Listed Companies

The Financial Services Commission held a meeting with officials from related authorities, industry groups and research organizations on January 30 to discuss and announce measures to improve rules on treasury stocks of listed companies. The authorities prepared the measures after having a policy seminar on this topic in June last year and drawing opinions from various stakeholders and experts. At the meeting, FSC Vice Chairman Kim Soyoung delivered opening remarks, outlining market participants views on Koreas treasury stock system and proposing measures for improvement. The following is a summary of Vice Chairman Kims remarks. Unlike in the U.S. or other advanced markets, treasury shares in Korea have often been utilized for bolstering the control of major shareholders in a company, as opposed to their primary goal of increasing shareholder value. This has been made possible mainly because allocation of new shares is permitted on treasury stocks when companies spin off their business units, so that treasury stocks were used to bolster the control of major shareholders. Moreover, information about treasury stocks has not been made available in the market either in a timely or adequate manner, which presents the potential for damaging the rights and interests of general shareholders. Therefore, to protect the rights and interests of ordinary shareholders in corporate spin-offs, authorities will prohibit allocation of new shares on treasury stocks. In addition, authorities will upgrade rules to ensure a thorough review on the preparation of investor protection measures when a newly established company intends to list on an exchange after the spin-off. In addition, to ensure the provision of transparent information on the acquisition, holding and disposal of treasury stocks, authorities will upgrade rules to require listed companies to disclose in detail when the proportion of their treasury stock holding rises above a certain level and to strengthen disclosure duty fo
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Jan 25, 2024

Supply of Policy Mortgage Loans to Concentrate on Non-speculative Homebuyers

The Financial Services Commission announced that the operation of an integrated policy mortgage loan program under the Special Bogeumjari Loan scheme will end on January 29 as scheduled, which will be switched back to the regular Bogeumjari Loan program from January 30. The volume of policy mortgage loans planned to be supplied under the Bogeumjari Loan program will be KRW10 trillion-plus on an annual basis. Depending on market demands and implementation of other types of policy funds, authorities will flexibly adjust the supply of policy mortgage loans. However, the sum of all types of policy mortgage loans made available will be maintained at around KRW40 trillion, a 10-year average. The supply of Bogeumjari Loan will be focused on lower-income households and non-speculative homebuyers, with added benefits available for vulnerable groups. Newly married couples, households with multiple children and victims of housing rental (jeonse) scams will be eligible for eased borrowing conditions. In general, Bogeumjari Loan will be available for households with a combined annual income of KRW70 million or less and for houses valued at KRW600 million or less. For newly married couples, the combined annual income of up to KRW85 million will be allowed. Households with multiple children will be eligible for higher income thresholds and more loan amounts. There is no income restriction for the victims of jeonse frauds who will be eligible to borrower from Bogeumjari Loan to purchase homes valued up to KRW900 million. Interest rates for Boguemjari Loan will be set between 4.2 percent and 4.5 percent. Support for interest rates will be available for vulnerable groups on varying degrees to ensure the supply of policy mortgage loans at about mid-three-percent interest rates to them. The FSC also plans to work on various measures to promote the supply of longer-term mortgage loans by commercial lenders. First, authorities will encourage banks to handle more of the less risky mortgag
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Jan 10, 2024

Household Loans, December 2023

The outstanding balance of household loans across all financial sectors went up KRW0.2 trillion in December 2023 (preliminary), showing a significant slowdown in the pace of growth from a month ago (up KRW2.6 trillion). In 2023, household loans increased KRW10.1 trillion across all financial sectors, up 0.6 percent from the end of last year. * Monthly change (in trillion KRW, y-o-y): +5.2 (Jul 2023), +6.1 (Aug), +2.4 (Sep), +6.2 (Oct), +2.6 (Nov), +0.2 (DecP) Annual change (in trillion KRW, y-o-y): +56.2 (2019), +112.3 (2020), +107.5 (2021), -8.8 (2022), +10.1 (2023P) (By Type) In December 2023, mortgage loans rose KRW5.1 trillion, slowing down from a rise of KRW5.6 trillion in the previous month. Other types of loans dropped KRW4.9 trillion, showing an accelerated pace of decline from a month ago (down KRW3.0 trillion). (By Sector) Household loans grew at a slower rate in the banking sector (up KRW5.4 trillion up KRW3.2 trillion), while declining at a faster rate in the nonbanking sector (down KRW2.8 trillion down KRW3.0 trillion). Mortgage loans from banks grew at a slightly slower rate from the previous month (up KRW5.7 trillion up KRW5.2 trillion) due to a suspension in the provision of a certain type of policy mortgage loan. Other types of loans fell KRW2.0 trillion due to the effects of year-end bonuses. Household loans from nonbanks fell KRW3.0 trillion in December 2023. Mutual finance businesses (down KRW1.6 trillion), savings banks (down KRW0.9 trillion), specialized credit finance businesses (down KRW0.5 trillion) and insurance companies (down KRW0.01 trillion) all saw declines in household loans. (Assessment) Household loans turned upward in 2023 from a drop in the previous year due to a recovery in the real estate market. Mostly, the growth was caused by policy mortgage loans extended to non-speculative homebuyers. Compared to previous years, the authorities evaluate that the pace of growth (up KRW10.1 trillion) is kept at a stable level currently. Nonet
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Dec 20, 2023

Financial Authorities of Korea and Japan Hold 7th Shuttle Meeting in Seoul on December 19-20

The Financial Services Commission and the Financial Supervisory Service held the 7th shuttle meeting with Japans Financial Services Agency in Seoul on December 19-20. The shuttle meeting between the financial authorities of the two countries was held for the first time in seven years since the last meeting held in Tokyo in June 2016. Key details of the meeting are included in the joint press release shown below. 1. The Seventh Korea-Japan Shuttle Meeting was held by three financial supervisory and regulatory authorities (the Financial Services Commission (FSC), the Financial Supervisory Service (FSS) of the Republic of Korea and the Financial Services Agency (FSA) of Japan; hereinafter referred to as the three authorities) in Seoul, the Republic of Korea, on December 19 and 20. The Shuttle Meeting was held for the first time in seven years since the last meeting in Tokyo in June 2016. 2. The first Shuttle Meeting was held in Seoul in 2012 with the aim of strengthening cooperation between Korean and Japanese financial authorities. At the Shuttle Meeting this year, a meeting between Mr. KIM Joo-hyun, Chairman of the FSC of the Republic of Korea, and Mr. KURITA Teruhisa, Commissioner of the FSA of Japan, was held on December 19, and a meeting between Mr. LEE Bokhyun, Governor of the FSS of the Republic of Korea, and Mr. KURITA was held on December 20. 3. At the Shuttle Meeting, the three authorities held a frank and constructive discussion on the global economic and financial situation as well as their financial supervisory and regulatory priorities. 4. Mr. Kim welcomed todays shuttle meeting, which took place following the October meeting with Mr. Kurita in Tokyo. Recognizing the Japanese governments policy to promote digital transformation and startup business, as well as a move that encourages Korean startups and fintech companies to closely watch the Japanese market, Mr. Kim indicated that the FSC, in tandem with its relevant institutions, plans to hold IR events,
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Dec 19, 2023

Provision of Policy Finance Support Worth KRW212 Trillion Planned for 2024

The Financial Services Commission held a meeting with the related government ministries and policy financial institutions on December 19 and decided on a plan for providing policy finance support for 2024. The consultative body on policy finance support was launched last year with aims to more effectively supply policy funds in line with the industrial strategies and policies prioritized by government ministries.Through the operation of the consultative body, the government was able to successfully implement and quickly provide KRW91 trillion in policy funding support to the five key strategic sectors in 2023 as planned. In 2024, the authorities decided to increase the total amount of financing support made available through policy financial institutions to KRW212 trillion (up 3.4 percent from 2023). For policy funds earmarked for the five major strategic sectorsfor nurturing super gap growth for domestic industries, supporting business reorganization and industrial restructuring, promoting domestic startups and venture businesses to grow into global unicorns and so onthe authorities decided to supply 11.5 percent more than the amount provided this year, or KRW102 trillion-plus. More specifically, for the global super gap sectors, which include the semiconductor, secondary battery and display industries, a total of KRW17.6 trillion in policy finance support will be provided in 2024, up 12.8 percent from the previous year. For cultivating domestic startups and venture businesses into global unicorns, a total of KRW12.6 trillion in policy finance support will be supplied, up 39.5 percent from 2023. To help businesses better cope with the continuation of high interest rates, high inflation and high USD-to-KRW exchange rates, a total of KRW28.7 trillion in policy finance support will be provided in 2024, an increase of 8.9 percent from this year. At the meeting, FSC Vice Chairman Kim Soyoung said that the provision of policy finance support in 2024 will be implemented w
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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.
Attachment 1