Press Releases - Financial Services Commission

Press Releases

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Mar 22, 2006

FSS to Host China Japan Korea Trilateral Financial Supervisory Cooperation Seminar

The Financial Supervisory Service will host a two-day China Japan Korea Trilateral Financial Supervisory Cooperation Seminar in Seoul on March 28 and 29 with representatives from the China Banking Regulatory Commission and the Financial Services Agency of Japan.The seminar is a meeting of regulators and researchers the FSS proposed to forge closer ties and facilitate supervisory cooperation among the supervisory authorities of the three countries. It also follows a proposal FSC Chairman and FSS Governor Yoon Jeung-Hyun made in March 2005 to hold regular meetings among the heads of the supervisory authorities of China, Japan, and Korea to help reinforce trilateral financial supervisory cooperation.The Chinese delegation will be led by Mr. Han Mingzhi, Director General of International Department of China Banking Regulatory Commission, and the Japanese delegation by Mr. Chihara Nobuyoshi, Deputy Commissioner for International Affairs at the Financial Services Agency. Dr. Lee Jang Yung, Assistant Governor of the FSS, will lead the seminar as the host.At the seminar, Dr. Ba Shusong from Development Research Institute of China, Mr. Shirakawa Shunsuke from the FSA, and Dr. Park Hae-Sik from Korea Institute of Finance are scheduled to make presentations and lead discussions on topics ranging from supervisory challenges under Basel II and monitoring of hedge funds to early warning systems for financial supervision.* Please refer to the attached PDF for details.
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Mar 13, 2006

BIS Capital Adequacy Ratio of Domestic Banks: End-2005

Preliminary figures show the BIS capital adequacy ratios of domestic banks averaged 12.98% as of the end of 2005, compare with 12.08% a year earlier. The ratio rose for 14 banks and fell for five. All of the banks reported capital ratios higher than 10% at the year’s end.Domestic banks’ risk-weighted assets rose 11.5%, but the increase fell short of a 19.9% (KRW17.1 trillion) jump in capital boosted by KRW13.6 trillion in net income for the year. Tier-1 capital rose 30.3% (KRW17.2 trillion), but tier-2 capital fell 0.3% (KRW100 billion). In terms of risk-weighted assets, tier-1 risk-based capital ratio rose from 7.97% to 9.31%, but tier-2 risk-based capital ratio fell from 4.11% to 3.67%.* Please refer to the attached PDF for details.
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Feb 16, 2006

Equity Disclosure Filings for Publicly Held Companies: 2005

Equity disclosure filings for publicly held companies for 2005 show a total of 2,409 investors held, together with related parties, five percent or more of the outstanding shares of 1,600 publicly held companies–689 Stock Market-listed and 911 KOSDAQ-listed companies–as of the end of the year. Eight tender offers and 133 proxy solicitations were made during the year, compared with 16 and 156, respectively, for 2004.Disclosures Related to the Five-Percent RuleDisclosures filed under the five-percent reporting rule totaled 10,216, up 2,988 or 41.3% from 7,229 a year earlier. The total figure for 2005 included 1,791 re-filings mandated under the amended reporting rule that took effect March 29, 2005.A breakdown of the filings by investment purpose shows investors who disclosed “Exercising Influence on the Management” numbered 1,591–in 1,553 companies, 657 Stock Market-listed, 896 KOSDAQ-listed–in 2005. Investors who disclosed “Investment Only” numbered 884–in 942 companies, 422 Stock Market-listed, 520 KOSDAQ-listed).Filings by Foreign InvestorsA total of 267 foreign investors–253 legal entities and 14 individuals–held five percent or more of equity interests in 450 publicly held companies, of which 218 were Stock Market-listed and 232 KOSDAQ-listed.Tender Offer FilingsEight tender offer filings were made in 2005: three for increasing the management’s control and five for going private. One of the eight tender offer filings was made by a foreign investor. In 2004, there were 16 tender offer filings, of which four were filed by foreign investors.Proxy SolicitationsA total of 133 disclosures were filed for proxy solicitation in 2005. Of the total, 114 or 85.7% were for meeting the quorum requirements in the general shareholders’ meeting, compared to 119 or 76.3% in 2004. The rest were for proxy contests* Please refer to the attached PDF for details.
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Feb 09, 2006

Bank Loans Classified as Substandard or Below: End-2005

Preliminary figures show bank loans classified as substandard or below (SBLs)– substandard, doubtful, or presumed loss–totaled KRW9.7 trillion at the end of 2005, compared with KRW13.9 trillion a year earlier. During the same period, the ratio of SBLs to the total outstanding loans fell to 1.22% from 1.90%.Aggressive write-offs and disposition of SBLs totaling KRW20.1 trillion during the year and a sharp drop in new SBLs totaling KRW15.9 trillion–compared with KRW26.5 trillion a year earlier–helped to drive SBLs and the SBL ratio lower for 2005.Of the KRW20.1 trillion SBLs cleaned up during the year, loan write-offs made up KRW5.9 trillion (29.3%), loans reclassified above substandard KRW5.3 trillion (26.3%), and collateral sales and loan collection KRW4.0 trillion (20.1%).Corporate loans, household loans and credit card receivables classified as SBLs all fell in 2005 from a year earlier. SBL ratios fell from 1.90% to 1.31% for corporate loans, from 1.60% to 0.98% for household loans, and from 5.13% to 2.40% for credit card receivables.* Please refer to the attached PDF for details.
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Jan 16, 2006

Credit Card Pruchases Total KRW192.5 Trillion in 2005

Domestic credit card purchases, excluding corporate and overseas card purchases and cash advances, totaled KRW192.5 trillion in 2005, up KRW28.0 trillion or 17.1% from a year earlier. In particular, fourth quarter credit card purchases, boosted by seasonal year-end spending, jumped 11.4% from the third-quarter total of KRW48.2 trillion to KRW53.7 trillion, the highest level since 2003.The increase in credit card purchases was led by economy-sensitive and household purchases of goods and services. Income effect from the surge in the stock market as well as improved economic outlook most likely contributed to the continued growth of credit card purchases in 2005.Credit card data also suggest that most consumers are now increasingly using credit cards primarily for purchases of goods and services, not for cash advances. Since 2003, the proportion of credit card purchases has continuously risen and reached 70.3% of the total credit card use in the third quarter of 2005.The increase in credit card purchase was fairly uniformly spread across the board with notable jumps for restaurants and large discount retailers. Of the 176 credit card merchants classified by the Credit Finance Association, 141 merchant groups saw increased credit card purchases in 2005.* Please refer to the attached PDF for details.
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Dec 29, 2005

Amended Listing and Disclosure Rules by Korea Exchange for Non-Domestic Companies Approved

The Financial Supervisory Commission approved regulatory amendments proposed by the Korea Exchange to ease listing regulations for non-domestic (foreign) companies and apply more uniform disclosure standards for domestic and non-domestic companies. The following is a summary of the newly amended regulations.Primary Listing of Non-Domestic Companies(Effective December 26, 2005)Non-domestic companies not listed in an overseas stock exchange may apply for primary listing at the Korea Exchange. Prior to the amendment, only secondary listing was available to non-domestic companies. Under the principle of equal standards for domestic and non-domestic companies, essentially all the listing and delisting rules applicable to domestic companies are also applicable to non-domestic companies.Accounting Standards for Listed Non-Domestic CompaniesIn addition to Korean Accounting Standards, the U.S. GAAP and International Accounting Standards are allowed for non-domestic companies for financial reporting. In order to ensure the integrity and the reliability of financial information provided to investors, non-domestic companies are barred from arbitrarily changing the accounting standards they adopt for financial reporting after becoming listed at the Korea Exchange.Disclosure for Listed Non-Domestic Companies(Effective April 1, 2006)Non-domestic companies must in principle comply with the same periodic and prompt (ongoing) disclosures as those applicable to domestic companies. Disclosures must be filed in Korean. For full-length periodic disclosures filed for the home country, non-domestic companies may file the same report with a summary Korean translation.In recognition of difficulties non-domestic companies may face in continuously monitoring events at home and the need to alleviate compliance burden, the amended disclosure rules exempt listed non-domestic companies from full compliance with fair disclosure rules barring selective disclosure of significant information.The timin
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Dec 15, 2005

Financial Supervisory Commission Appoints Standing Commissioner Lee Woo-Cheol Deputy Governor of Financial Supervisory Servic

The Financial Supervisory Commission appointed Lee Woo-Cheol Deputy Governor of the Financial Supervisory Service effective December 9, 2005. Prior to the appointment, Mr. Lee served as the Standing Commissioner of the FSC.Mr. Lee began his career in public service in 1978 at the Ministry of Finance and Economy (formerly Ministry of Finance) after passing the government senior civil servant examination in May, 1976. At the MOFE, he primarily focused on economic and public policy issues. After completing a two-year assignment at the Presidential Secretary Office in 1989, Mr. Lee returned to the MOFE and assumed a number of key positions related to accounting, financial markets, and legal affairs.Following another two-year assignment at the Administrative Office to the Prime Minister in 1998, Mr. Lee served in a number of senior financial policy positions at the FSC. They included Director General of Planning Administration Office, Director General of Financial Supervisory Policy Bureau, and Standing Commissioner of the Securities and Futures Commission. In September, 2004, Mr. Lee was appointed Standing Commissioner of the FSC.Mr. Lee graduated from Seoul National University with a B.A. in Law in 1971. He also received an M.A. in Public Administration from Harvard University in 1983 and an M.A. in Economics from the State University of New York at Albany in 1984.* Please refer to the attached PDF for details.
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Dec 06, 2005

BIS Capital Adequacy Ratio of Domestic Banks: September 2005

Preliminary figures show that the BIS capital adequacy ratio of domestic banks at the end of September averaged 12.83%, compared with 12.53% at the end of June, 12.08% at the end of 2004, and 11.78% a year earlier. For the year, the ratio rose for 15 banks and fell for 4 banks.Domestic banks’ risk-weighted assets rose 8.3% since beginning of the year, but the increase was easily offset by a 15% (KRW12.9 trillion) jump in capital that resulted from a surge in bank net income totaling KRW10.5 trillion and government capital contribution of KRW500 billion to Export-Import Bank of Korea. Tier-1 capital rose by KRW14.2 trillion (25.0%), while tier-2 capital fell by KRW1.3 trillion (4.4%) for the year.* Please refer to the attached PDF for details.
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Oct 13, 2005

Amended Regulation on Indirect Investment Asset Management Business to Take Effect on October 7, 2005

The FSC/FSS amended Regulation on Indirect Investment Asset Management Business and the accompanying enforcement rules on September 30. The amended regulations, which take effect October 7, are intended to strengthen prudential oversight of asset management companies (AMCs) and ease restrictions on asset management activities. The following is a summary of the amended regulations.Prudential Oversight of AMCsAmended Investment Risk Weights on Net-Asset Basis(To take effect after six months from October 7, 2005)The risk weight for mark-to-market funds for the purpose of regulatory capital is to be differentiated according to the funds’ asset holdings in order to lower capital burden on AMCs with large funds. Prior to the amendment, 0.1% was uniformly applied as risk weight to all mark-to-market funds. Below is a table of amended new risk weights to be applied to mark-to-market funds on net-asset basis.The risk weight for book -value funds is to remain unchanged at the current uniform level of 0.2%. The same risk weight is to be applied to private equity funds managed by AMCs. For AMCs with outside directors and an audit committee in place, 10% of the risk amount determined is to be additionally deducted. In determining risk amount, borrowed funds for investment purposes are to be included in the net asset amount.Amended Management Status Evaluation(To take effect after six months from October 7, 2005)For assessment of capital adequacy of AMCs, the ratio of capital impaired is to be newly added to the quantitative capital assessment criteria so that undercapitalized AMCs do not receive a quantitative rating higher than the third (fair) grade. The effective capital adequacy ratio, which had varies little among AMCs, was eliminated from the quantitative capital assessment criteria.Prompt Corrective Action for AMCsWhere an AMC subject to prompt corrective action (PCA) satisfies the mandatory soundness standards with capital restoration or other necessary measures, the b
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Oct 04, 2005

Consumer Credit Card Spending: January-August, 2005

An analysis of consumer credit card spending by the FSS for the first eight months of the year showed that credit card spending−purchase of goods and services and cash advances−came to KRW184 trillion, down KRW10.7 trillion or 5.5% from KRW194.7 trillion during the same period a year earlier. Credit purchase of goods and services totaled KRW111.1 trillion, up KRW9.5 trillion or 9.3% from a year earlier, while cash advances fell KRW16.8 trillion or 19.6% to KRW68.9 trillion as credit card issuers cut back on cash services and canceled card members with poor payment history. Since the first quarter of 2004, the amount of credit card purchase of goods and services has been greater than that for cash advances.Purchase of Goods and ServicesDuring the Jan.–Aug. period, the amount of goods and services purchased totaled KRW111.1 trillion, compared with KRW101.6 trillion during the same period a year earlier. Consumer purchase of goods and services has increased for four consecutive quarters since the third quarter of 2004.In May and August, credit purchases totaled KRW14.93 trillion and KRW14.88 trillion, respectively, close to the December 2004 record of KRW14.94 trillion.Full-Payment Installment Payment PurchasesCredit purchases paid in full upon the due date have steadily increased since 2002. During the Jan.–Aug. period, purchases paid in full jumped 10.9% from a year earlier. Installment purchases, typically used for durable consumer goods and other high-price goods and services, showed a modest increase of 4.5% during the Jan.– Aug. period.Credit Purchases by Age GroupBy age group, the share of credit card purchases by consumers older than 40 years has risen steadily, while the share of purchases by consumers younger than 30 years has fallen, suggesting that the increase in credit card purchases is being led by older consumers with relatively stable and higher income.Major PurchasesFigures from 15 of the 178 merchant groups that made up approximately 56.4%
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Sep 12, 2005

Direct Corporate Financing Decreases in August

Data compiled by the FSS showed that stocks and bonds issued by domestic companies in August totaled KRW3.74 trillion, marking a decrease of 30.9% from a month earlier. The decrease in direct corporate financing was due to the seasonal effect of low demand for corporate financing. Stocks and bonds issued fell 46.4% to KRW290.6 billion and 29.1% to KRW3.45 trillion from a month earlier, respectively.Equity FinancingStocks issued fell 46.4% in August due to temporary adjustments in the stock market. There were two IPOs during August totaling KRW16.8 billion, compared with 14 IPOs of KRW215.4 billion in July. The amount of seasoned equity offerings (SEOs) in August fell 16.3% from a month earlier to KRW273.8 billion.Debt FinancingCorporate BondsExcluding Asset- backed securities (ABS) and financial bonds, corporate debt issues decreased 19.8% to KRW1.40 trillion in August as interest rates in the bond market rose and the amount of maturing bonds decreased KRW618.4 billion from a month earlier. Corporate debt issued for facilities investment and rollovers increased 311.5% and 14.7%, respectively, while corporate debt for operating capital dropped35.6%.Financial BondsFinancial bonds issued in August fell 30.4% to KRW803.0 billion from KRW1,153.0 billion in July due to a rise in bond interest rates. Bonds issued by credit card companies and installment finance companies dropped 34.8% to KRW543.0 billion and 18.8% to KRW260.0 billion, respectively.Asset-Backed SecuritiesAsset-backed securities (ABS) issued by public offering totaled KRW1.24 trillion in August, down 36.6% from July but up 26.1% from the same period last year. The total ABS issuances in August came to KRW2.59 trillion, up 2.0% from July and 19.1% from the same period last year.Direct Financing by Large Companies and SMEsThe amount of debt (excluding ABS and financial bonds) and equity financing by large companies fell 26.5% to KRW1,433.1 billion and that of SMEs also fell 23.9% to KRW259.6 billion from a mon
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Sep 06, 2005

Equity Disclosure Filings: First Half of 2005

An analysis of equity ownership disclosure filings during the first half of this year showed that a total of 2,413 investors held together with related parties 5% or more of the outstanding shares of 1,548 publicly-held companies—671 Stock Market (formerly KSE)-listed and 877 KOSDAQ-listed companies—as of the end of June. Five tender offers and 108 proxy solicitations were made during the period, compared with nine and 124, respectively, during the same period a year earlier.Disclosures Related to the 5% RuleThe number of disclosures filed under the 5% rule rose 2,038 or 55% to 5,718 from 3,680 a year earlier. Most of the increase resulted from investors re-filing disclosures as mandated under the amended 5% rule that took effect March 29 this year.A breakdown of the filings by investment purpose showed that, of the 2,413 investors who filed disclosures under the 5% rule, a total of 1,494 investors—1,417 domestic investors and 77 foreign investors—declared Exercising Influence on the Management as the intended investment purpose; the rest declared Investment Only as the intended investment purpose.Disclosures on Tender OffersA total of five tender offer-related disclosures were filed during the first half of the year. Of the five, four were intended for going private and the other as a defensive move against potential hostile takeover bids. All five were filed by local investors and companies. A year earlier, there were a total of nine tender offer filings, of which three were by foreign entities.Disclosures on Proxy SolicitationA total of 108 disclosures were made for proxy solicitations during the first half of the year. Of the total, 93 were for meeting the quorum requirements in the general shareholders’ meetings; the rest was for proxy contests. One of the proxy solicitation disclosures was filed by Crest Securities on behalf of Sovereign for SK Corporation’s general shareholders’ meeting.* Please refer to the attached PDF for details.
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Jul 29, 2005

Amended Regulation on Outsourcing by Financial Services Companies Takes Effect July 27, 2005

The FSC/FSS announced on July 26 that the newly amended Regulation on Business Delegation of Financial Institutions took effect July 27, 2005. The newly amended regulation is a major deregulatory step that significantly broadens the range of activities that can be outsourced by financial services companies and help them utilize outsourcing more efficiently. One of the key changes to be implemented under the amended regulation is a shift from a positive regulatory regime that provides for activities financial services companies may outsource to a negative regulatory regime that provides for activities financial services companies may not outsource. Thus, as a general rule, financial services companies will be allowed to outsource activities unless the regulation specifically provides otherwise. The following is a summary of the newly amended regulation on outsourcing.Expanded outsourcing by financial services companies• Adoption of negative regulatory regime for outsourcingAs a rule, outsourcing is to be allowed for financial services companies unless the activity to be outsourced (i) constitutes a part of the core business activities of the financial service company; (ii) is mandated under the law to the financial service company, or (iii) poses risk to the soundness of the financial services company, undermines orderly conduct of their business, or causes consumer harm. In addition, the core business activities of financial services companies are specifically provided for so that non-core activities may be outsourced without undue discretionary intrusion from the regulators.• Back-office support activitiesThe amended regulation newly defines outsourcing as utilizing the services or the facility of a third party in order to perform financial services activities approved by the FSC/FSS and provides that outsourcing encompasses the back-office and other support activities of financial services companies. As a general rule, outsourcing is to be allowed for back-off
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Jul 22, 2005

SFC to file criminal complaints against two individuals and an investment fund for illegal securities trading

The Securities and Futures Commission announced on July 22 that it had completed deliberations on the findings of the investigation of trading of a listed company’s shares by an investment fund (“H”)* and decided to file criminal complaints with the Supreme Prosecutors’ Office against H, its former director of emerging markets (“R”), and a broker at an overseas subsidiary of a local securities company (“K”). The complaints will allege that R and K engaged in a scheme to manipulate trading of shares of a listed company (“S”) and that H, as R’s principal, was liable for his illegal activities.Findings of Investigation by Financial Supervisory ServiceThe investigation by the Financial Supervisory Service found that R acquired 7,772,000 common shares (5%) of S through H’s account between November, 2003, and March, 2004, and 8,300 preferred shares of S on his own personal account on March 3, 2004, and conspired with K to manipulate trading of S shares by repeatedly portraying the company as a potential takeover target through the news media. R also repeatedly urged S publicly to buy back its preferred shares and retire them.After S publicly made a share buyback offer for its common and preferred shares on November 26, 2004, R raised the prospect for hostile takeover bids for the company and expressed his support for such attempts in an interview he arranged with a widely circulated local newspaper on November 29, 2004. R also expressed his support for retirement of S’s preferred shares in the interview. The interview, which was published on December 1, 2004, prompted heavy trading and bidding up of S’s shares among investors and effectively provided artificial support for price and trading volume R sought to unload H’s substantial holdings in S two days later.On December 3, 2004, R sold off all of H’s holdings in S and realized gains totaling KRW29.2 billion (US$ 28.0 million). On the same day, R also sold off all of his own preferred shar
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Jul 22, 2005

Deutsche Bank Seoul Branch and BNP Paribas Seoul Branch Issued Severe Disciplinary Warning

The Financial Supervisory Commission announced on July 22 that the Seoul branch of Deutsche Bank and the Seoul branch of BNP Paribas would be issued a severe disciplinary warning for engaging in improper non-standardized OTC derivatives contracts with state-owned companies. The FSC also issued (1) suspension of duties for a period of one month for the head of the Seoul branch of Deutsche Bank, and(2) a censure for the head of the Seoul branch of BNP Paribas and recommended (3) dismissal for one employee and a reprimand for another of the Seoul branch of Deutsche Bank, (4) a three-month pay reduction for one employee of the Seoul branch of BNP Paribas, and (5) a three-month pay reduction for one employee and a reprimand for another of the Seoul branch of Barclays Bank for their involvement in the derivatives contracts. Each of the three banks cited by the FSC today will also be expected to submit a written agreement detailing specific steps to be taken to prevent improper derivatives business activities. In announcing the decision on foreign bank branches, the FSC noted that, because there was no precedent to the actions it took, regulators conducted extensive and thorough review of actions taken by foreign regulators in similar cases and the trading customs and practices in overseas derivatives markets as well as actions taken on domestic banks for poor internal controls and the customs and practices in the derivatives market at home.The actions the FSC announced today are based on the findings of examinations the Financial Supervisory Service conducted on four foreign bank branches—including the two Seoul branches of Deutsche Bank and BNP Paribas—following the general examination of the National Agricultural Cooperative Federation the FSS conducted in July 2004. The July 2004 examination of the NACF uncovered, among others, a large illicit payment scheme involving employees of the NACF and the Seoul branch of Deutsche Bank and intermediaries who helped to arran
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Jul 14, 2005

Draft Proposals on Reducing Regulatory Compliance Burden of Publicly-Held Companies Released

The FSC/FSS released on June 28 draft proposals put forth by Korea Securities Research Institute to reduce regulatory compliance burden faced by publicly -held companies. The draft proposals are the result of a joint effort between KSRI and a task force made up of experts and representatives from the FSC/FSS, Korea Exchange, Korea Listed Companies Association and KOSDAQ Listed Companies Association.Regulatory reform on accounting, disclosures and corporate governance for publicly-held companies has significantly boosted investor protection and market transparency in recent years. While these are clearly welcome and positive developments for the market, there has also been a growing recognition that the increasingly demanding rules and regulations are raising costs and compliance burden on publicly-held companies. In a recent survey of 201 listed companies, 25% of the respondents said that the benefits of staying as a publicly-held company were outweighed by the costs. Compliance with prompt disclosures and listing requirements, potential costs of class-action litigations, and high legal and regulatory standards for corporate governance were frequently cited by publicly-held companies as sources of concern.The draft proposals are intended to address these issues so that listed companies are not unduly restrained by regulatory compliance burden. The FSC/FSS expects to come up with more concrete measures from the draft proposals that can be implemented through supervisory regulations or by the self-regulatory organizations of Stock Market Division (formerly KSE) and KOSDAQ Market Division at the Korea Exchange by the end of the year after further deliberations and consultations (After the passage of the Sarbanes-Oxley Act in 2002, the S.E.C. of the U.S. also created an advisory committee in March this year to look into reducing listing burden on small companies going public for the first time).As summarized next, the draft proposals are divided along four general areas
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Jul 07, 2005

FSS Instructors Conduct Training on Financial Supervision at the Department of State Financial Inspection of Mongolia

Instructors from the Financial Supervisory Service conducted a week-long training on financial supervision at the Department of Sate Financial Inspection (DSFI) of Mongolia from June 27 to July 2. The FSS has been sharing its supervisory experiences and offering training on financial supervision to Asia’s emerging markets as a way to promote cooperation and foster close ties among the supervisory authorities in the region. The instruction had been planned since April at the invitation of the DSFI and covered insurance supervision and examination, insurance actuarial models and reserves, and supervision of non-bank financial institutions.Since the FSS invited DSFI staff for training on financial supervision in 2002, there have been three alternate training sessions between FSS and DSFI supervisors. Korea’s experiences with corporate and financial sector restructuring and financial supervisory policies were some of the topics discussed in these meetings. The FSS strongly supports training and staff exchange programs with foreign supervisory authorities and will continue to lend its support to the efforts of the supervisory authorities in Asia to improve financial supervision.* Please refer to the attached PDF for details.
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Jul 01, 2005

FSC/FSS Appoints Foreign Spokesperson to Improve Communication with the Foreign Business Community and Foreign News Media

The FSC/FSS appointed Douglas Kim a foreign spokesperson effective July 1 to help improve communication with the foreign business community and foreign news media. Douglas Kim has worked at the FSS International Cooperation Office since 2001. Prior to joining the FSS, he worked as an English editor at the International Tax Division, Ministry of Finance and Economy, as an economic research analyst at the Bureau of Economics, U.S. Federal Trade Commission, and as a statistician at the U.S. Patent Office in Washington, D.C. Mr. Kim received M.A. in Economics from Pennsylvania State University in May, 1992.* Please refer to the attached PDF for details.
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Jun 23, 2005

New Initiative to Improve Supervisory Work Processes for Foreign Financial Service Companies

The FSC/FSS announced a new initiative aimed at significantly improving supervisory work processes for foreign financial service companies as a complement to efforts currently under way to streamline the existing supervisory and regulatory processes and make them more efficient, dynamic and investor-friendly in support of the Financial Hub Initiative. One key objective of the new initiative is to help improve business environment for foreign financial service companies by promptly responding to supervisory and regulatory concerns or difficulties they may have and provide more active assistance and services on a timelier basis in light of language and other unique problems they encounter in Korea.Initially, the new initiative calls for the creation of International Supervision Support Office staffed by English-proficient professionals within the FSS and dedicated to providing a “one-stop” service to foreign financial service companies and the creation of International Supervision Advisory Committee. Supervisory matters relating to foreign financial service companies are to be put on fast track for accelerated review and decision-making by the committee.International Supervision Support OfficeThe International Supervision Support Office, to be made up of Foreign Financial Service Company Support Team and Northeast Asia Financial Hub Team, will put forth and implement regulatory reform and supervisory assistance measures for foreign financial service companies in support of the Financial Hub Initiative. The new office will also receive and oversee regulatory approval requests for new financial products from foreign financial service companies and resolve problems they may encounter with business activities under FSC/FSS supervision. Regulatory decisions involving the establishment of a new commercial presence and MA matters will continue to be handled by the appropriate supervisory department within the FSC/FSS. The Foreign Financial Company Support Team to be newl
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Jun 22, 2005

FSC/FSS to Launch Financial Statistics Information System for Foreign Investors in August

The FSC/FSS announced that Financial Statistics Information System (FISIS) would be available in English for foreign investors and other users through the FSS English website (http://english.fss.or.kr) in August. FISIS, a major upgrade from the monthly financial statistics in e-book format currently available in English, is an extensive, web-based database system capable of intuitive, user -friendly search on wide-ranging information and financial statistics from financial institutions. The English FISIS is identical to the Korean FISIS (http://fisis.fss.or.kr) except for a few modifications to the user interface and some of the contents to make it better suited and more relevant for foreign investors.FISIS is capable of generating wide-ranging information and financial statistics on financial institutions, including general profiles, summary income statements and balance sheets, and key business indicators such as profitability, liquidity, and productivity in charts and other user-tailored formats.The new system is expected to become fully operational and open to the public after test runs in July.* Please refer to the attached PDF for details.
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