Press Releases - Financial Services Commission

Press Releases

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Nov 11, 2020

Household Loans, October 2020

The outstanding balance of household loans in all financial sectors rose KRW13.2 trillion from the previous month in October 2020 (up 7.1% year-on-year). The household loan balance increased KRW10.6 trillion in the banking sector and KRW2.5 trillion in the non-banking sector.By type, mortgage loans increased KRW7.2 trillion in October, rising KRW0.1 trillion from the previous month (up KRW3.2 trillion y-o-y). In the banking sector, mortgage loans expanded KRW6.8 trillion while jeonse loans grew at a slower rate (up KRW3.0 trillion m-o-m). Mortgage lending by non-banks saw an increase of KRW0.4 trillion from the previous month. Other types of loans went up KRW6.0 trillion as credit-based lending by both banks and non-banks rose KRW3.8 trillion and KRW2.1 trillion, respectively, due to seasonal factors.The financial authorities will closely monitor trends as the volume of household loans generally tends to expand in the fourth quarter. While considering the need to minimize downside effects to lower income households and small-scale businesses, the government will prepare plans to more effectively manage household debt.* Please refer to the attached PDF for details.
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Nov 10, 2020

Volume of Public Financial Data Available on Open Financial Database Reaches 210 Million

The FSC announced that the volume of public financial data made available through the open financial database reached 210 million, rising about 377 percent from 44 million during the test run period between April and June this year. In addition, user satisfaction results showed that about 87.3 percent of users responded that they were well aware of the open financial database service, while some 83.3 percent of respondents stated that they were content with the service due to the availability of data usage at free of charge, abundance and diversity in data as well as accuracy.With a memorandum of understanding signed between the FSC and participating institutions, the FSC will continue to work on the advancement of the open financial database system. In close coordination with relevant institutions, the government will make concerted efforts to expand data diversity and continue to improve user satisfaction.* Please refer to the attached PDF for details.
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Nov 10, 2020

Government Approves Revised Rules on Vishing Prevention and Electronic Financial Transactions

The government approved revisions to the rules on vishing prevention and electronic financial transactions at a cabinet meeting held on November 10.The revision to the enforcement decree of the Special Act on the Prevention of Loss Caused by Telecommunication-based Financial Fraud and Refund for Loss, which is scheduled to go into effect on November 20, creates a legal form for victims of vishing scams to be able to report phone numbers associated with vishing while filling damage claims at the same time. This will help authorities more effectively block phone numbers associated with vishing.The revision to the enforcement decree of the Electronic Financial Transactions Act, which is scheduled to go into effect on November 20, establishes a legal ground for financial institutions to check personal identification from customers when returning lost cards at ATMs, etc.* Please refer to the attached PDF for details.
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Nov 06, 2020

Government Selects 247 Innovative Firms for Comprehensive Support

The government announced the selection of 247 business entities as part of the plans to cultivate one thousand innovative firms over the next three years at the National Economic Advisory Council meeting held on November 6. The selected businesses will be eligible to receive comprehensive financial and non-financial support. At the meeting, Chairman Eun Sung-soo spoke about the important role of finance in promoting innovation and preparing for a post-pandemic era.BACKGROUNDThe government introduced the plans to provide targeted support to more than one thousand innovative firms at the 12th Meeting of the Central Economic Response Headquarters on July 30 and has made the first round selection of thirty-two businesses from the newly emerging sectors and materials, parts and equipment industries. Through close coordination between the relevant ministries, the government chose 247 innovative firms for the second round of selection in the areas of high-tech manufacturing and automation, chemical and new materials, energy and ICT. The selected SMEs have a high potential for growth and represent different stages of business development.CHAIRMAN’S REMARKSThe government has prepared a diverse set of policies to bring about an economic recovery and help boost the competitiveness of industries. First, the plans to cultivate more than one thousand innovative enterprises over the next three years are designed to provide comprehensive financial support tailored to the needs of selected enterprises. For highly promising companies, the public sector will also provide assistance in raising investments from the private sector to facilitate their scale-up strategies.Second, the Korean New Deal fund in the amount of KRW20 trillion will be created to help channel market liquidities toward productive sectors. The K-New Deal fund makes it possible for retail investors to share profits from the K-New Deal investment projects, while ensuring a steady supply of venture capital to innovati
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Nov 06, 2020

FSC Holds Meeting on Financial Market Conditions

FSC Chairman Eun Sung-soo held a meeting to review the effects of the US presidential election on financial markets at home and abroad on November 6. As there are possibilities of growing market volatilities in the financial markets in the wake of the US presidential election, the FSC will continue to stay alert and closely monitor market conditions.At the meeting, Chairman Eun stressed the importance of maintaining market stabilization efforts as well as legislative efforts to improve rules and regulations, such as strengthening sanctions on illegal stock short selling activities, allowing more short sale opportunities for retail investors and improving the current IPO system.Chairman Eun also discussed the importance of maintaining strict public health safety and preventive measures at individual financial institutions in order to ensure that the spread of COVID-19 does not pose risks to financial markets. To this end, Chairman Eun called for strong cooperation from the authorities in preventing the spread of the virus.* Please refer to the attached PDF for details.
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Nov 04, 2020

FSC Selects Two More Fintechs as Designated Agents to Provide Financial Services

The FSC selected Finotek and Big Value as designated fintech firms on November 3, allowing them to provide financial services on behalf of Jeju Bank, BNK Kyongnam Bank and Kwangju Bank, and Pepper Savings Bank, respectively.Finotek will make available online refinancing brokerage platform service, which is expected to improve consumer convenience and efficiency while saving costs.Using big data and artificial intelligence technologies based on public data, Big Value will provide estimates on market prices and collateral values of atypical assets. Operating a big-data driven automated price estimation system for small-scale real estate properties, this service is expected to boost price transparency and enable financial businesses to improve their work efficiency.The FSC has selected a total of 33 designated fintech firms so far since May 2018. Application for the next round will be open from November 9, 2020 to January 8, 2021, with the results expected to be announced in March next year.* Please refer to the attached PDF for details.
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Nov 03, 2020

FSC to Work on COVID-19 Recovery, Cultivating Innovative Firms and Ensuring Market Stability

The FSC held the 28th financial risk assessment meeting via teleconference on November 3, chaired by Secretary General Kim Tae-hyun. During the meeting, officials discussed the progress in implementing the COVID-19 financial support including the small merchant support program and market stabilization measures.(CURRENT ECONOMIC AND MARKET SITUATION) Recent economic indicators suggest that the Korean economy is on a track to recovery. The economy grew 1.9 percent in the third quarter while industrial production, consumption and investment all increased in September. Consumer sentiment and the Business Survey Index rose in October as well. Domestic financial markets have also shown signs of stability. The volume of corporate bond, CP and short-term debt issuances has grown in September while credit spreads have been falling steadily, backed by the government’s efforts of launching the bond market stabilization fund and the SPV aimed at purchasing low-rated corporate bonds and CP. However, there still exist uncertainties surrounding the US presidential election and the scale of economic stimulus measures as well as concerns over a possible second wave of virus outbreaks. Thus, the government will closely monitor risk factors and take preemptive measures when necessary.(PROMOTING INNOVATION THROUGH STRONG FINANCING SUPPORT) Promoting the development of new technologies by innovative businesses is crucial to ensure a further progress in the post-pandemic era. The recently published banking sector technology assessment result for the first half of 2020 shows that the banking sector has been steadily working to improve their own technology capabilities and providing lending support to innovative businesses while serving as a conduit of the government’s emergency financial support programs. In addition, the best practice guidelines on sanctions exemptions for banks, established by the Korea Federation of Banks on October 26, provides more consistency in line with the ru
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Nov 03, 2020

FSC Proposes New Rules on AML Requirements on Virtual Assets

The FSC introduced a proposal of new rules to provide further details of anti-money laundering (AML) requirements on virtual assets under the revised Act on Reporting and Using Specified Financial Transaction Information (“the Act” hereinafter), which is scheduled to go into effect on March 25, 2021. The proposal will be available for public notice and comment for forty days from November 3 to December 14, 2020.KEY PROVISIONS(SCOPE OF VIRTUAL ASSET SERVICE PROVIDERS) The Act defines “virtual asset service provider (VASPs)” as business entities which engage in one or more of the following activities or operations: (i) purchase and sales of virtual assets; (ii) exchanges between virtual assets; (iii) transfer of virtual assets; (iv) safekeeping and administration of virtual assets; (v) intermediation or brokerages of virtual asset transactions; exchange of virtual assets; and (vi) other activities specified by the enforcement decree. The enforcement decree provides examples of VASPs subject to the Act such as virtual asset trading service providers, safekeeping/administration service providers, and digital wallet service providers. (SCOPE OF VIRTUAL ASSETS) The Act defines “virtual assets (VAs)” as digital tokens with economic value that can be digitally traded or transferred. The Act also provides a list of items which are not included in the scope of virtual assets: (i) digital tokens that cannot be exchangeable for fiat currencies, commodities and services and whose purpose of use is limited by the issuer; prepaid electronic payment methods or e-money; electronically registered stocks; electronic notes; electronic B/L; and others specified by the enforcement decree given the formats and features of transactions. The enforcement decree stipulates that prepaid cards, mobile gift cards and electronic bonds are excluded from the scope of VAs.(REQUIREMENTS FOR REAL-NAME ACCOUNTS) The Act mandates that VASPs use real-name accounts in their financial transacti
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