-
Mar 03, 2023
- Interest Rate Disclosure to be Expanded in Banking Sector to Promote Competition
- Financial authorities announced a plan to expand banks disclosure of the differences between interest rates on deposits and loans at the 1st working group meeting of the taskforce on improving the management and operating practices of banks and banking system held on March 2. The following are specific measures of the plan. a) Along with the current comparative disclosure on the differences between interest rates on newly transacted deposits and loans across different banks, the banking sector will additionally provide comparative public disclosure on the differences between interest rates on outstanding balance of deposits and loans among different banks, which will show the profitability level of each bank. In addition, the banking sector will also provide information on detailed interest rate of loans (household loans, business loans, etc.) and deposits based on outstanding balances. b) Interest rates on jeonse loans, which are highly relevant to peoples daily life, offered by individual banks will be comparatively disclosed in order to facilitate clear comparison of interest rates on jeonse loans (interest rates on home mortgages and credit loans are currently being disclosed). c) The banking sector will comparatively disclose individual banks interest rates on household loans in a more detailed manner, which subdivide them into base rate, spread, and preferential rate, intended to help customers compare respective characteristics of banks interest rates calculation. d) Each bank will voluntarily add a new webpage to put up explanations of the factors that bring about changes in their interest rates, such as expansion of loans to low- and mid- credit borrowers or increased ratio of short-term bank borrowings. Authorities plan to revise the detailed regulations on supervision of banking business and set up a computer network system between the Korea Federation of Banks and individual banks with a goal to begin implementation of these measures in July this year.
-
Feb 28, 2023
- Fast-Track System to be Utilized Effectively in Investigation of Unfair Trading Activities
- The FSC, the FSS, the Korea Exchange and Seoul Southern District Prosecutors Office held a joint council meetingon February 27. At the meeting, authorities discussed and reviewed the outcome of operating the fast-track system in handling unfair trading activities in 2022. The fast-track system, introduced in 2013, is an emergency measure by Chair of the Securities and Futures Commission (SFC) in which a case deemed urgent and significant can be referred to the prosecutors office without going through the SFCs deliberation. If a case under investigation by the FSC or the FSS is deemed to have urgent need of the prosecutors investigation due to concerns about a suspect fleeing or a potential destruction of evidence, SFC Chair can decide to quickly refer the case to the prosecutors office after consulting with relevant authorities. In 2022, the FSC and the FSS referred a total of 20 casesto Seoul Southern District Prosecutors Office through the fast-track system, leading to prosecution of numerous offenders within short periods of time. In order to more effectively respond to unfair trading activities, which are becoming more sophisticated and organized, authorities will strengthen cooperation among related agencies and concentrate more investigative capacity on major cases that have a potential to inflict significant losses to investors. By utilizing the fast-track system, authorities will take swift and stern responses against major cases involving unfair trading activities, and make continuous efforts to improve the operation of the fast-track system. Major Fast-Tracked Cases in 2022 [Case #1] Case involving circulation of false information about COVID-19 test kit and sale of company stocks at high price for profiteering (Case Summary) The offenders (a) acquired a KOSDAQ-listed company (company A) through a leveraged buyout (LBO: MA without own capital), (b) then spread a rumorabout company As COVID-19 test kit to drastically push up its stock price,and (c) sold the
-
Feb 09, 2023
- Household Loans, January 2023
- In January 2023, the outstanding balance of household loansacross all financial sectors declined KRW8.0 trillion (m-o-m) and the growth rate also dropped at a faster pace (down 1.0 percent, y-o-y), showing a strong trend of decline. Financial authorities will ensure stable management of household debt and continue to seamlessly implement the normalization of relevant loan regulations to help non-speculative homebuyers. (Overall) Household loans across all financial sectors dropped KRW8.0 trillion in January 2023. The year-on-year growth rate (down 1.0 percent) declined at a faster pace compared to the previous month (down 0.5 percent), showing a continuous trend of slowing down. (By Type) Mortgage loans went down month-on-month for the first time since relevant statistics became available in 2015, and the rate of decline for other types of loans has also increased. - (Mortgage Loans) Mortgage loans fell KRW0.6 trillion in January, led by jeonse loans (down KRW1.8 trillion) and home-backed mortgage loans from nonbank sectors (down KRW0.6 trillion) such as mutual finance. - (Other Types of Loans) Other types of loans fell KRW7.4 trillion, as the rate of the decline increased compared to the previous month (down KRW5.2 trillion), led by credit loans. (By Sector) Household loans edged down in both the banking and nonbanking sectors. -(Banking Sector) Household loans in the banking sector declined KRW4.6 trillion in January. Regarding mortgage loans, banks saw a growth in government-sponsored mortgage lending (up KRW1.7 trillion) and group lending for new apartment subscription (up KRW0.3 trillion), but a drop in jeonse loans (down KRW1.8 trillion).Other types of loans from banks dropped KRW4.6 trillion, declining at a faster pace from a month ago (down KRW2.9 trillion) led by credit loans (down KRW3.8 trillion). -(Nonbanking Sector) In January, nonbanks saw a drop of KRW3.4 trillion in household loans with a slight rise in savings banks (up KRW0.1 trillion) but declines
-
Jan 26, 2023
- SFC Imposes Penalty Surcharge on Overseas-based Financial Investment Entity for Market Disturbance
- The Securities and Futures Commission (SFC), a sub-commission of the FSC responsible for the oversight of the securities and futures market, decided on January 26 to impose a penalty surcharge of KRW11.88 billion on an overseas-based financial investment business entity (securities firm A hereinafter) for disturbing market order with its high-frequency algorithmic trading activities. This is the first instance in Korea where authorities reached a decision to impose a penalty surcharge for market disturbance caused by high-frequency algorithmic trading activities.With the growth in the volume of high-frequency algorithmic transactions recently, financial authorities will continuously strengthen the administration of market risks associated with them. Overview The SFC recognized that securities firm A engaged in an activity of disturbing market order in its transactions of a total of 264 stock items in 6,796 trading periods via a Seoul-based securities firm (securities firm B) between October 2017 and May 2018, and decided to impose a penalty surcharge of KRW11.88 billion on securities firm A, pursuant to the Article 429-2 of the Financial Investment Services and Capital Markets Act (FSCMA). Violation Securities firm A engaged in trading activities using its algorithmic trading system, which enables it to acquire and analyze data on price quotation and trade executions as well as submit buy and sell orders via direct market access (DMA)more quickly than ordinary retail investors. In the process, securities firm A placed orders intensively and repetitively within a short period of time in the following pattern(a) placing immediate-or-cancel (IOC)buy market orders to exhaust all quantities of best ask prices in succession, and (b) submitting buy limit orders on any remaining unfilled quantity where there is no bid price given in order to newly generate the best bid price (inflating bid price) and then cancelling such transactions. Thus, a suspicion was raised that secur
-
Jan 12, 2023
- Household Loans, 2022
- The outstanding balance of household loansacross all financial sectors dropped KRW8.7 trillion in 2022, declining for the first time since relevant statistics became available in 2015.Household loans in December 2022 fell KRW3.4 trillion, showing a continuing trend of a slowdown.Financial authorities will work to seamlessly implement the normalization of loan regulations, while continuing to stably managehousehold debt. Household Loan Trend in 2022 (Overall) Household loans across all financial sectors dropped KRW8.7 trillion in 2022. The growth rate (down 0.5 percent, y-o-y) fell for the first time since relevant statistics began to be collected in 2015. (By Type) Mortgage loans grew at a slower rate and the balance of other types of loans edged down, which led to the overall drop in household loans in 2022. - (Mortgage Loans) Mortgage loans grew KRW27.0 trillion in 2022, led by group lending for new apartment subscription and jeonse loans, but the pace of growth decelerated compared to the previous year (up KRW69.2 trillion). - (Other Types of Loans) Other types of loans fell KRW35.6 trillion in 2022, due to drops in credit loans and non-housing collateral loans. The increase of KRW38.3 trillion in the previous year turned to a decline. (By Sector) Household loans in both the banking and nonbanking sectors dropped compared to the end of last year. - (Banking Sector) Banks saw a drop of KRW2.7 trillion in household loans in 2022. Mortgage loans from banks grew KRW20.0 trillion, led by group lending for new apartment subscription (up KRW9.4 trillion) and jeonse loans (up KRW8.4 trillion),but edged lower compared to the previous year (up KRW56.9 trillion). Other types of loans from banks fell KRW22.8 trillion, as credit loans edged down KRW18.8 trillion, switching to a decline from the growth of KRW14.7 trillion last year. - (Nonbanking Sector) In 2022, nonbanks saw a drop of KRW5.9 trillion in household loans with increases in insurance companies (up KRW3.7 trillion
-
Dec 22, 2022
- Korea Appointed as Inaugural Member of IFRS Sustainability Standards Advisory Forum
- The Financial Services Commission (FSC) and the Korea Accounting Institute (KAI) have been appointed by the International Financial Reporting Standards (IFRS) Foundation as inaugural member institutions of the Sustainability Standards Advisory Forum (SSAF) representing Korea on December 21, 2022. The SSAF is established to support the International Sustainability Standards Board (ISSB) to develop and revise IFRS sustainability disclosure standards. It will be comprised of relevant government authorities and standard-setting institutions from around the world. Including those from Korea, thirteen representatives of jurisdictions and regions from around the worldthe European Union, the UK, Canada, China, Japan, Brazil, etc.have been appointed as SSAFs inaugural members. The U.S. Securities and Exchange Commission (SEC), the European Commission (EC), the International Organization of Securities Commission (IOSCO) and the Global Reporting Initiative (GRI) will also participate as official observers. From Korea, the FSC and the KAI have been appointed as joint members to the SSAF, and the Korean delegation will be led by Director Kim Kwang-il of the FSCs Fair Market Division. The FSC and the KAI will attend the SSAF meetings four times annually. In the standard-setting process, authorities will effectively relay various opinions from domestic industries, academia and experts on sustainability disclosure. The first meeting of the SSAF will be held at the ISSB head office in Frankfurt, Germany in the first quarter of 2023, and presumably, the final standards for the general sustainability-related disclosure requirements and the climate-related disclosure requirements that were previously announced in March 2022 as well as the ISSBs future standard-setting directions will be discussed. * Please refer to the attached PDF for details.
-
Dec 20, 2022
- Government Approves Revision Bill to Strengthen Rights of General Shareholders in Split-off of Listed Company
- The government approved an amendment to the Enforcement Decree of the Financial Investment Services and Capital Markets Act (FSCMA) at the state council held on December 20. This amendment is a follow-up to the measures to improve protection for general shareholders in IPO of split-off subsidiary announced on September 5. Key Details and Anticipated Effect Until the end of this year, all three layers of general shareholder protection system regarding IPO of split-off subsidiary become established and begin operation. With this system, it is expected that companies will pay sufficient attention to the rights and interests of general shareholders when they pursue a split-off and losses incurred to general shareholders in a split-off of a subsidiary, which has been pointed out repeatedly, will be effectively prevented. a) (Enhanced Disclosure) From October 18 this year, companies seeking to split off a subsidiary disclose their business restructuring plan including the purpose of split-off, anticipated effect, shareholder protection measures and listing plan on their material fact reports. - As a result, general shareholders and investors can get adequate information related to the split-off and make informed decisions at general meetings of shareholders, when exercising the right to request companies to purchase their shares and when making investments. b) (Right to Request Company to Purchase Shares) The amendment approved today grants shareholders, who dissent from the companys split-off decision, a rightto request that company purchase his or her stocks when the companys board of directors reaches a resolution to make a split-off. - If a majority of general shareholders is opposed to the split-off or that a potential drop in company value is triggered, pursuing a split-off in itself can be difficult. Therefore, in essence, listed companies can pursue a split-off only when they prepare shareholder protection measures in place and have convinced general shareholders
-
Dec 08, 2022
- Household Loans, November 2022
- In November 2022, the outstanding balance of household loansacross all financial sectors declined KRW3.2 trillion (m-o-m). Household loans continued to show a declining trend as the year-on-year growth rate in November dropped for the first time since relevant statistics became available in 2015.Financial authorities will stably manage the grow rate of household debt and work to seamlessly implement the normalization of relevant loan regulations to help alleviate the difficulties of non-speculative homebuyers. (Overall) Household loans across all financial sectors dropped KRW3.2 trillion in November. The growth rate (down 0.3 percent, y-o-y) fell for the first time since relevant statistics began to be collected in 2015, which shows a sustaining trend of a slowdown since the second half of last year. (By Type) Mortgage loans grew at a slower rate and other types of loans fell more rapidly from the previous month, leading to acceleration in the overall pace of the decline in household loans. - (Mortgage Loans) Mortgage loans rose KRW0.5 trillion in November, growing at a slower rate compared to the previous month (up KRW2.0 trillion), led by jeonse loans. - (Other Types of Loans) Other types of loans declined at a faster rate (down KRW3.6 trillion) compared to a month ago (down KRW2.2 trillion), led by a drop in credit loans. (By Sector) Household loans in the banking sector continued to drop while the nonbanking sector also saw a shift to a decline. - (Banking Sector) Banks saw a drop of KRW1.1 trillion in household loans. Mortgage loans from banks grew KRW1.0 trillion,rising at a slower rate compared to the previous month (up KRW1.3 trillion), as government-sponsored mortgage lending and group lending for new apartment subscription went up KRW2.6 trillion and KRW0.6 trillion, respectively. Other types of loans from banks fell KRW2.0 trillion, declining at a faster rate compared to the previous month (down KRW1.9 trillion), led by a drop in credit loans (down KRW1.8
-
Nov 14, 2022
- Single-stop Online Loan Transfer System to be Set Up to Reduce Interest Burden on Consumers
- The FSC announced its plan to set up a single-stop online loan transfer system on November 14 to help alleviate the burden of high interest rates on financial consumers. With recent interest rate increases, it is necessary to find ways to lessen financial consumers interest costs.The FSC plans to facilitate loan transfer,as one of these ways, allowing financial consumers to more easily swap their present loans to reduced interest rate loans. Current Market Situation Currently, there is not a lot of products for loan transfers in the personal loan market because of inconvenience for the loan applicants and lack of a relevant infrastructure.In the first place, the absence of a fully integrated online system in financial institutions has required the payment of existing loans in the offline mode,which results in time and costs for both financial consumers and financial institutions. Second, since there are very few platforms offering comparison services for loans and because there is a limited amount of information, namely, accurate information on the current loan, the cost (various fees when transferring loan) and the benefits (savings generated from lower interest rate), which can help consumers make informed decisions, borrowers still have a difficult time making a decision about the loan transfer. The FSC announced its plan to set up a single-stop online loan transfer system on November 14 to help alleviate the burden of high interest rates on financial consumers. With recent interest rate increases, it is necessary to find ways to lessen financial consumers interest costs.The FSC plans to facilitate loan transfer,as one of these ways, allowing financial consumers to more easily swap their present loans to reduced interest rate loans. Key Details of Plan a) Build an online loan transfer system between financial institutions The payment of the loan, from the request of payment to the provision of the necessary information and to the final confirmation of the payment
-
Nov 10, 2022
-
Nov 09, 2022
- Household Loans, October 2022
- In October 2022, the outstanding balance of household loansacross all financial sectors fell KRW0.2 trillion (m-o-m), declining for the second consecutive month from a month ago (down KRW1.2 trillion).Financial authorities will swiftly roll back relevant loan regulations to help alleviate difficulties of non-speculative homebuyers. At the same time, authorities will stably manage the grow rate of household debt. (Overall) Household loans across all financial sectors dropped KRW0.2 trillion in October. The growth rate (y-o-y) was 0.2 percent which continues to show a downward trend since the second half of 2021. (By Type) Mortgage loans increased at a faster rate than the previous month and other types of loans fell at a slower rate, leading to a slowdown in the pace of an overall decline in household loans. - (Mortgage Loans) Mortgage loans rose KRW2.0 trillion in October, growing at a slightly faster rate compared to the previous month (up KRW1.9 trillion), led by group lending for new apartment subscription. - (Other Types of Loans) Other types of loans fell at a slower rate (down KRW2.2 trillion) compared to a month ago (down KRW3.1 trillion), led by a drop in credit loans. (By Sector) Overall household loans edged down as nonbanks saw a growth and banks maintained a declining trend. - (Banking Sector) Banks saw a drop of KRW0.6 trillion in household loans. Mortgage loans from banks grew KRW1.3 trillion,rising at a faster rate than the previous month (up KRW0.9 trillion), as government-sponsored mortgage lending and group lending for new apartment subscription went up KRW1.0 trillion and KRW0.7 trillion, respectively. Other types of loans from banks fell KRW1.9 trillion, declining at a slower rate than the previous month (down KRW2.1 trillion), led by a drop in credit loans (down KRW1.6 trillion). (Nonbanking Sector) In October, nonbanks saw an increase of KRW0.4 trillion inhousehold loans with declines in mutual finance (down KRW0.4 trillion) and specialized cre
-
Oct 13, 2022
- Household Loans, September 2022
- In September 2022, the outstanding balance of household loansacross all financial sectors fell KRW1.3 trillion (m-o-m). It edged back lower again from the increased one of last month and sustains a stable level overall.Financial authorities will manage to keep the growth rate of household debt stable while making continuous efforts to alleviate financial burdens of low income households and non-speculative homebuyers. (Overall) Household loans across all financial sectors declined KRW1.3 trillion last month. The growth (y-o-y) was 0.6 percent which continued to slow since the second half of 2021. (By Type) Mortgage loans increased at a slower rate than the previous month and other types of loans fell at a faster rate, leading to an overall drop in household loans. - (Mortgage Loans) Mortgage loans rose KRW2.0 trillion in September, growing at a slower rate compared to the previous month (up KRW2.7 trillion), as group lending for new apartment subscription fell from KRW1.2 trillion to KRW0.5 trillion. - (Other Types of Loans) Other types of loans fell KRW3.3 trillion, declining significantly from the previous month (down KRW1.8 trillion), due to a drop in credit loans. (By Sector) Household loans edged back down in both the banking and nonbanking sectors. - (Banking Sector) Banks saw a drop of KRW1.2 trillion in household loans. Mortgage loans from banks grew KRW0.9 trillion,rising at a slower rate than the previous month (up KRW1.6 trillion), as jeonse loans and group lending for new apartment subscription went up KRW0.6 trillion and KRW0.5 trillion, respectively. Other types of loans from banks fell KRW2.1 trillion, declining at a faster rate than the previous month (down KRW1.3 trillion), as credit loans dropped KRW1.8 trillion. - (Nonbanking Sector) In September, nonbanks saw a drop of KRW0.1 trillion in household loans with increases in insurance companies (up KRW0.6 trillion) and savings banks (up KRW0.2 trillion) and declines in mutual finance (down KRW0.5 tri
-
Oct 07, 2022
-
Sep 29, 2022
-
Sep 26, 2022
- KoFIU Unveils H1 2022 Survey Result on Virtual Asset Service Providers
- The Korea Financial Intelligence Unit (KoFIU) conducted a survey on 35 registered virtual asset service providers (VASPs) in order to see the current state of the domestic virtual asset market. Survey Overview (Respondents) 35 VASPs (26 exchange service providers and 9 other businesses) (Survey Method) Collect data from VASPs by paper surveys (Period Covered) January 1, 2022 to June 30, 2022 Key Survey Findings for H1 2022 The domestic market for virtual assets in H1 2022 has been downsized significantly compared to that of H2 2021 in terms of market capitalization, trading volume, etc.This seems to be caused by a slowdown in economic activities following the crisis in Ukraine, interest rate hikes and decreasing liquidity as well as falling level of confidence in virtual assets in the wake of the Terra-Luna crash. Total sales profits gained by VASPs stood at KRW630.1 billion, a drop of 62 percent compared to KRW1.6 trillion in H2 2021. According to the survey, the number of virtual assets traded in domestic market was 1,371. When excluding duplicates on multiple exchanges, the number of virtual assets stood at 638, and among them, the number of stand-alone virtual assets listed and traded on a single exchange was 391 (or 61 percent). The proportion (% of market capitalization) of the global top ten virtual assets handled by the KRW-based exchange service providers increased from 41 percent to 47 percent, while the proportion (% of market capitalization) of stand-alone virtual assets increased from 84 percent to 86 percent for the coin-only exchange service providers. About 36 percent of stand-alone virtual assets (or 139 of them) were small-scale in their size with market capitalization of KRW100 million or less. For these small-scale virtual assets, users need to practice caution as they may be prone to abrupt price volatilityand liquidity shortage. As of the end of June 2022, the number of users eligible to trade in virtual assets stood at 6.9 million. The amount
-
Sep 08, 2022
- Household Loans, August 2022
- In August 2022, the outstanding balance of household loansacross all financial sectors rose KRW0.7 trillion, edging back up slightly from a decline in the previous month but maintaining a stable level overall.The financial authorities will continue to monitor the household debt growth to ensure that it is maintained at a stable level in order to help prevent it from posing risk to the economy. (Overall) Household loans across all financial sectors rose KRW0.7 trillion in August 2022. The growth rate (up 1.2%, y-o-y) has continued to slow down since the second half of 2021. (By Type) Mortgage loans grew at a slightly faster pace than the previous month and other types of loans fell at a slower rate, leading to an overall increase in the balance of household loans. - (Mortgage Loans) Mortgage-backed loans rose KRW2.8 trillion in August, edging up slightly faster than the previous month (up KRW2.5 trillion), as group lending for new apartment subscription increased. - (Other Types of Loans) Other types of loans dropped KRW2.1 trillion in August, edging down at a slower rate compared with the previous month (down KRW3.4 trillion), as credit loans and non-housing collateral loans declined. (By Sector) Household loans increased from the previous month in most sectors but showed a continuous trend of slowdown in the mutual finance sector (down KRW0.5 trillion) with a drop in nonmortgage loans. - (Banking Sector) Banks saw a rise of KRW0.3 trillion in household loans. Mortgage loans from banks grew KRW1.6 trillion,rising at a slower rate than the previous month (up KRW2.0 trillion), with group lending for new apartment subscription and jeonse loans going up KRW1.2 trillion and KRW0.9 trillion, respectively. Other types of loans fell KRW1.3 trillion, declining at a slower rate from a month ago (down KRW2.3 trillion), with credit loans edging down KRW0.9 trillion. - (Non-Banking Sector) In August, nonbanks saw an increase of KRW0.4 trillion in household loans, led by savings
-
Aug 10, 2022
- Household Loans, July 2022
- In July 2022, the outstanding balance of household loansacross all financial sectors fell KRW1.0 trillion, showing a stable trend as the growth seen in Q2 turned back lower.The financial authorities will make efforts for a stable management of the household debt growth while working on effective implementation of the normalization of household loan regulations to help alleviate financing difficulties of non-speculative homebuyers. (Overall) Household loans across all financial sectors dropped KRW1.0 trillion in July 2022. The growth rate (up 1.7%, y-o-y) has continued to stay on a downward path since the second half of 2021. (By Type) Mortgage loans expanded at a slower pace than the previous month and other types of loans dropped at a greater level, contributing to the overall decline in household loans. - (Mortgage Loans) Mortgage-backed loans rose KRW2.5 trillion in July, slowing down from KRW2.8 trillion in the previous month. - (Other Types of Loans) Other types of loans dropped KRW3.6 trillion in July, falling at a faster rate compared with the previous month (down KRW2.1 trillion). (By Sector) Household loans in both the banking and non-banking sectors turned lower, but the growth trend continued in the savings bank (up KRW0.4 trillion) and insurance (up KRW0.2 trillion) sectors. - (Banking Sector) Banks saw a drop of KRW0.3 trillion in household loans. Mortgage loans from banks grew KRW2.0 trillion,rising from KRW1.4 trillion a month ago, as group lending for new apartment subscription and jeonse loans rose KRW1.3 trillion and KRW1.1 trillion, respectively. Other types of loans fell KRW2.2 trillion, declining at a faster rate from a month ago (down KRW1.2 trillion) as credit loans fell KRW1.9 trillion. -(Non-Banking Sector) In July, nonbanks saw a drop of KRW0.8 trillion in household loans, led by declines in the mutual finance (down KRW1.2 trillion) and specialized credit finance (down KRW0.2 trillion) sectors. (Assessment) Household loans across all financ
-
Aug 03, 2022
- FSC Announces Measures to Strengthen Financial Support for Business Transformation
- The FSC unveiled a plan to provide financial support in the amount of about KRW1 trillion to companies pursuing business transformation to cope with changing digital and environmental conditions in order to help domestic companies regain their competitiveness edge and expand their business areas. Background In the process of responding to the COVID-19 pandemic, the rapidly changing business conditions such as digital transformation and carbon net zero movement have necessitated businesses to make changes at a greater level. Considering a slowdown in the level of business productivity, it has become necessary for companies to proactively seek structural transformation of their business in order to enhance the level of competitiveness. Measures to Support Business Transformation Currently, the Ministry of Trade, Industry and Energy (MOTIE)s standards for approving business transformation activities and the evaluation standards used by financial institutions remain different, so that it has been difficult to provide financing support to those that have been approved by MOTIE. Therefore, authorities will strengthen the pre-selection process to ensure that businesses that are eligible to receive financial assistance are selected as the entities pursuing business transformation by introducing a two-staged evaluation process (evaluation of disqualification criteria and evaluation of technological prowess). a) The business transformation support center will examinethe financial conditions of applicants and determine whether there are any reasons for disqualification. b) A technology credit bureau (TCB) will examine and determine the technological prowess and the viability of business model for those that have passed the evaluation of disqualification criteria. Through TCBs technology appraisal,the feasibility of new business model will be evaluated such as the potential for expanding sales, operating profit, etc., and the capability for capital expansion will be evaluated b
-
Jul 12, 2022
- Household Loans, June 2022
- The outstanding balance of household loansacross all financial sectors rose KRW0.7 trillion in June 2022 with the pace of growth falling from the previous month (up KRW1.7 trillion).The trends in household loan continue to be on a stable path as the statistics for all financial sectors in H1 2022 fell (down KRW0.8 trillion) for the first time since the half-year statistics first became available in 2015.The financial authorities will continue to make efforts for a soft-landing of the household debt issue as there are possibilities of growing burdens on borrowers and risks to financial companies due to interest rate hikes. (Overall) Household loans in June 2022 increased KRW0.7 trillion across all financial sectors. The growth rate (up 2.7%, y-o-y), which fell back lower from a slight increase seen in the previous month, continued to stay on a downward path since the second half of 2021. (By Type) Mortgage loans grew at a faster rate compared with the previous month, but other types of loans dropped considerably to bring down the overall household loan growth level. - (Mortgage Loans) Mortgage-backed loans rose KRW2.8 trillion in June, growing at a faster rate from the previous month (up KRW1.5 trillion) due to brisk lending by banks and the mutual finance sector. - (Other Types of Loans) Other types of loans dropped KRW2.1 trillion in June, edging back lower from a temporary hike in the previous month as credit loans and non-housing collateral lending declined. (By Sector) Household loans in both the banking and non-banking sectors saw a slowdown in the growth level, but the downward trend seen throughout this year in the mutual finance sector has turned upward. -(Banking Sector) Banks saw an increase of KRW0.2 trillion in household loans, declining slightly from the previous month (up KRW0.3 trillion). Mortgage loans from banks rose KRW1.4 trillion,growing at a faster rate compared with the previous month (up KRW0.8 trillion), as jeonse loans (up KRW0.9 trillion) a
-
Jun 13, 2022
- Household Loans, May 2022
- The outstanding balance of household loansin all financial sectors rose KRW1.8 trillion in May 2022, staying at a stable level despite a slight increase from the previous month (up KRW1.2 trillion).The financial authorities will continue to work on stably managing the growth of household debt. (Overall) Household loans in May 2022 increased KRW1.8 trillion across all financial sectors. The growth rate from the same month of the previous year was 3.4 percent, showing a halt in the declining trend seen from the second half of the previous year, but staying at a stable level in general. (By Type) Mortgage loans grew at a slower rate from the previous month but other types of loans including credit loans edged up slightly for the first time this year. - (Mortgage Loans) Mortgage-backed loans rose KRW1.6 trillion in May, showing a slowdown from the previous month due mainly to a drop in group lending for new apartment subscription (from KRW1.1 trillion to KRW0.2 trillion). - (Other Types of Loans) Other types of loans increased KRW0.2 trillion in May, edging up for the first time following a continued decline since the end of the previous year, with a growth in credit loans. (By Sector) Household loans in the banking sector went up at a slower rate compared to a month ago but the pace of the growth accelerated in the non-banking sector as credit finance companies and savings banks saw increases. - (Banking Sector) Banks saw an increase of KRW0.4 trillion in household loans, showing a decline from the previous month (up KRW1.2 trillion). Mortgage loans from banks rose KRW0.8 trillion,growing at a slower rate compared to the previous month (up KRW2.0 trillion), as jeonse loans expanded (up KRW1.1 trillion) but group lending for new apartment subscription edged lower (up KRW0.2 trillion). Other types of loans declined KRW0.5 trillion and fell at a slower rate compared to the previous month (down KRW0.9 trillion) as credit loans edged down KRW0.2 trillion. -(Non-Banking Sect
