Press Releases - Financial Services Commission

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Apr 27, 2020

Deferment of Principal Payment Available for Vulnerable Debtors

The FSC announced on April 27 that deferment of principal payment will be available for vulnerable debtors who are unable to service debts due to diminished income caused by the COVID-19 pandemic. It will be offered by all financial institutions from April 29 until the end of this year.PROGRAMSBased on the situation of individual debtors, either a pre-workout program or a debt adjustment program is available.(PRE-WORKOUT BY FINANCIAL INSTITUTIONS) Microfinance loan users should apply for deferment of principal payment from the original lending institutions. Debtors without multiple debts are also able to apply at the lending institutions.Individual debtors whose diminished income minus living expenses is lower than monthly debt payment can apply for a deferment of principal payment for six to twelve months with no extra fees.(DEBT ADJUSTMENT BY CREDIT COUNSELING RECOVERY SERVICE) Debtors with multiple debts can apply for deferment of principal payment through a debt adjustment program at the Credit Counseling Recovery Service.Individual debtors with multiple debts whose net property value is less than the amoun ot total debts can apply for a deferment of principal payment for six to twelve months. Long-term debtors with three or more months of overdue payments may also be eligible for a debt relief program which offers 10~70 percent of debt cancellation.* Please refer to the attached PDF for details.
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Apr 27, 2020

FSC Finalizes Measures to Improve Regulatory Framework on Private Equity Funds

The FSC and the FSS announced the finalized measures to improve the regulatory framework on private equity funds on April 24. The final measures are based on the previously introduced plans on February 14, and take into account opinions from experts and stakeholders. While ensuring the autonomy of private equity funds, the measures aim to establish market disciplines and introduce a minimum necessary level of regulations to protect investors and prevent system risks.BACKGROUNDThe private equity fund market has grown significantly backed by the government’s policy promoting its development. However, concerns over investor protection became an issue due to problems of misselling, liquidity management and other unfair and/or unlawful sales practices. Against this backdrop, the government introduced on November 14, 2019 its plans to strengthen investor protection with high-risk investment products to prevent excessive consumer damages to retail investors. Between November 2019 and January 2020, the government conducted a study on the private equity fund market to check potential risks and vulnerabilities, and announced a set of improvement measures on February 14. Based on the previous announcements and after taking into account various expert opinions, the government prepared the below finanlized measures to improve the regulatory framework on private equity funds.KEY MEASURESThe basic principles of the improvements are largely in line with the previously announced changes with further details added thereafter.I. STRENGTHENING RISK MANAGEMENT BASED ON MARKET DISCIPLINESThe government will work to establish a foundation in which different market participants and players can provide a supervisory role and ‘checks and balances’ against one another.II. IMPROVING INVESTOR PROTECTIONThe FSC will address vulnerabilities in the structure of funds with a minimum necessary level of regulatory measures to improve investor protection.III. STRENGTHEN SUPERVISION AND INSPECTIO
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Apr 27, 2020

Extension of Reporting Deadline Available for Companies Affected by COVID-19

The financial authorities announced on April 24 their decision to temporarily lift administrative sanctions for companies that are unable to meet the quarterly and semi-annual reporting deadline due to COVID-19 related issues.For the companies that have already been granted exemptions from sanctions, the deadline has been extended until May 15. The authorities will accept additional applications for exemption from sanctions between April 27 and 29. Based on the review of applications, the Securities and Futures Commission will then decide to adopt an additional 30-day extension of deadline when the commission meets for a regular meeting on May 6.* Please refer to the attached PDF for details.
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