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FSC works to ensure that finance plays a key role in developing innovative businesses and supporting the real economy, thereby fueling Korea’s more vibrant economic growth. Promoting advanced financial industry, stable financial markets, fair market order and reliable consumer protection are among FSC’s key policy agenda. Digital transformation and big data are increasingly playing larger roles in various aspects of financial services. In the era of 4th industrial revolution and digital economy, finance will help boost growth potential and create jobs as the government seeks to advance its Digital New Deal policy.

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May 21, 2026

FSC Chairman Holds Media Briefing and Outlines Progress and Achievements of Financial Policy Implementation

Chairman Lee Eog-weon of the Financial Services Commission held a media briefing on May 21 and announced ten key achievements and progress in the implementation of financial policies in the first year of the Lee Jae Myung administration. Over the past year, the FSC has sought to push for a major overhaul in the financial industry to make financial services more productive, more inclusive, and more trustworthy, and has been able to produce notable achievements in the following areas. Progress and Achievements I. Decouple Finance-Real Estate Ties Redirect Finance to Productive Sectors a) Building foundation for Korea premium in capital markets Capital market reform has been a high priority for this administration. Various reform measures, such as introducing the one-strike-out principle for market manipulation, making corporate directors subject to the fiduciary duty to all shareholders, and requiring listed companies to permanently retire treasury shares, have been carried out in a swift manner. In this process, the rigidly boxed-in KOSPI index surged past 8,000 points for the first time in a single year, showing signs of shedding the disgrace of Korea discount and moving closer to Korea premium. b) Launching KRW150 trillion National Growth Fund to propel growth for next 20 years In December 2025, National Growth Fund was launched in the size of KRW150 trillion to propel economic growth for next 20 years and ensure an adequate supply of funds to strategic high-tech sectors. The fund has moved quickly to select 13 important megaprojects that can have significant ripple effects across different regions and industries and has already decided to inject KRW8.4 trillion in 11 megaprojects. From this amount, KRW4.6 trillion is being directed at regional economies and KRW1.2 trillion in direct investment for the development of future high-tech industries (e.g. AI computing). c) Promoting regionally well-balanced growth through targeted supply of finance In October 2025, the
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Apr 23, 2026

Revised FSCMA Introducing Cornerstone Investors Will Help to Bolster Price Stability in IPO Market

The Financial Services Commission announced that a revision bill for the Financial Investment Services and Capital Markets Act (FSCMA) intended to adopt the cornerstone investor system passed the plenary session of the National Assembly on April 23. Along with the previously passed bill on security token in January this year, this revision bill constitutes a crucial part of the governments capital market policy reform agendas. Key Revision Details a) Introducing preliminary book building Preliminary book building allows bookrunners to survey market demand before a price band for IPO is determined through the disclosure of a securities registration statement. Under the current law, the act of soliciting for subscription is prohibited prior to the securities registration statement being filed. Thus, it could be seen as a violation of the law if a bookrunner seeks to survey demand (price, quantity, etc.) from institutional investors by providing them with company information prior to the filing of a securities registration statement. In this regard, the revised FSCMA will grant an exemption to this rule to allow preliminary demand forecasting. Bookrunners will be able to engage in preliminary book building to examine market demand from the stage of establishing an initial price band, and this will facilitate the process of price discovery and help them arrive at a more optimal market price. b) Establishing rules on cornerstone investors The cornerstone investor system allows the pre-allocation of shares from the portion of IPO shares allocated for institutional investors to those who have agreed to a lockup of at least six months. In this regard, the revised FSCMA introduces the cornerstone investor system as an exemption to the rule prohibiting the solicitation or subscription prior to the filing of a securities registration statement. The introduction of cornerstone investors will help to foment investor confidence in the IPO market by ensuring a steady engagement of
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Apr 16, 2026

FSC-KRX Hold Seminar on Improving Rules on Split Listing

The Financial Services Commission and the Korea Exchange jointly held a policy seminar on improving rules on split listing on April 16. The government had previously announced a plan in March this year to prohibit split listing of parent and subsidiary companies in principle as part of broader efforts to seek improvements in the domestic capital markets. In this regard, todays seminar will help the authorities to gather diverse opinions and advice on overall policy directions and specific regulatory designs from investors and experts from various backgrounds. At the beginning of the seminar, FSC Chairman Lee Eog-weon delivered congratulatory remarks speaking on the importance of seeking ways to further strengthen the fiduciary duty of corporate executives and boards in the best interests of ordinary shareholders. A Summary of Remarks by FSC Chairman The practice of split listing of parent and subsidiary companies has often been used to expand the business operations and affiliates of corporate entities, while controlling shareholders continue to maintain the practical ownership rights. In this process, ordinary shareholders were left out from sharing the profit of growth achieved by the subsidiary company and had to bear the cost of discounts in stock prices. To address this problem and to bring more fairness and reasonableness to the domestic capital markets, it is necessary to gather diverse opinions and advice on ways to effectively tackle this problem. In this regard, financial authorities will seek to upgrade relevant rules and bolster the screening process to make sure to draw a clear line between the split listings that lead to an asymmetrical profit structure for only a few and the ones that are deemed to be fair and that can create new value for ordinary shareholders. Additionally, the rules change will require the parent companys board to examine the impact of split listing on its shareholders and prepare measures to ensure shareholder protection to have c
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Mar 11, 2026

Household Loans, February 2026

In February 2026, the outstanding balance of household loans across all financial sectors increased KRW2.9 trillion (preliminary), growing at a faster pace compared with the previous month (up KRW1.4 trillion). (By Type) Home-backed mortgage loans rose KRW4.2 trillion, growing at a faster pace compared with the previous month (up KRW3.0 trillion). Mortgage loans turned back up in the banking sector (down KRW0.6 trillion up KRW0.4 trillion) and expanded at a slightly faster pace in the nonbanking sector (up KRW3.6 trillion up KRW3.8 trillion). Other types of loans edged down KRW1.2 trillion, declining at a slower pace compared with the previous month (down KRW1.6 trillion), as credit loans dropped at a slower pace (down KRW1.1 trillion down KRW1.0 trillion). (By Sector) In February 2026, household loans in the banking sector saw a drop of KRW0.3 trillion, declining at a slower pace compared with the previous month (down KRW1.0 trillion). Banks own mortgage loan products fell at a slower pace (down KRW1.7 trillion down KRW1.1 trillion), while policy-based mortgage loans rose at a faster pace (up KRW1.1 trillion up KRW1.5 trillion). Other types of loans including credit loans declined at a faster pace (down KRW0.4 trillion down KRW0.7 trillion). In the nonbanking sector, household loans rose KRW3.3 trillion, growing at an expanded level from a month ago (up KRW2.5 trillion). Mutual finance businesses (up KRW2.3 trillion up KRW3.1 trillion) saw household loans edging up more rapidly, while insurance companies (down KRW0.2 trillion up KRW0.2 trillion) and specialized credit finance businesses (down KRW0.01 trillion up KRW0.1 trillion) saw household loans growing back up from declines seen a month ago. Savings banks (up KRW0.3 trillion down KRW0.1 trillion) saw household loans edging back down from an increase seen in the previous month. (Assessment) In February 2026, the outstanding balance of household loans edged up KRW2.9 trillion led by an expanded level of growth se
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Feb 05, 2026

KoFIU Announces AML/CFT Policy Agendas for 2026

The Korea Financial Intelligence Unit (KoFIU) held a policy advisory committee meeting on anti-money laundering and countering the financing of terrorism (AML/CFT) and announced key policy agendas for 2026 on February 5. At the committee meeting, KoFIU Commissioner Lee Hyung Ju said that it has been 25 years since the AML framework was first introduced in Korea pursuant to the Act on Reporting and Using Specified Financial Transaction Information (the Act hereinafter). In this regard, Commissioner Lee talked about the need to strengthen AML response capacity against newly emerging types of fraudulent activities, especially with regard to transborder crimes. To this end, the KoFIU plans to pursue four major policy agendas as follows(a) strengthening the capacity to respond to serious public livelihood infringement crimes and transborder crimes, (b) bolstering the AML framework in the virtual asset industry, (c) improving financial companies AML capacity, and (d) enhancing regulatory consistency with global standards. Background Since its establishment in 2001, the KoFIU has been examining and analyzing specified financial transaction information to be provided to law enforcement agencies and supervising and overseeing the AML duty of financial companies. Over the past 25 years, the volume of both suspicious transaction reports (STRs) and analysis of information being shared with law enforcement agencies has increased significantly. In 2023-2024, the use of KoFIUs analysis data led to the uncovering of major tax and customs violations cases. In 2021, the KoFIU adopted a registration system for virtual asset service providers (VASPs) and made them subject to the AML duty, thereby employing inspections and sanctions tools to help strengthen the AML capacity of VASPs. The KoFIU was the first in the world to adopt the travel rule for VASPs, requiring them to transmit and hold originator and beneficiary information in virtual asset transactions. Nonetheless, the Korean soc
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Dec 29, 2025

Promoting Measures to Strengthen the Effectiveness of the Stewardship Code

On December 29, 2025, the Stewardship Code Council, the Korea Institute of Corporate Governance and Sustainability (KCGS), and relevant ministries and agencies including the Financial Services Commission, Ministry of Health and Welfare, Ministry of Education, Ministry of Personnel Management, and Korea Post, jointly announced measures to strengthen the effectiveness of the Principles on Institutional Investors Stewardship Responsibilities (hereinafter referred to as the Stewardship Code). The Stewardship Code, a set of principles designed to guide institutional investors that manage assets in fulfilling their stewardship responsibilities, was introduced in December 2016 as a private-sector voluntary code. Over the subsequent 9 years, through December 2025, a total of 249 institutional investors have participated in the Stewardship Code. These include 4 public pension funds, the National Pension Service, the Government Employees Pension Service, the Private School Teachers Pension, and Korea Post, as well as 63 asset management companies. Since its introduction, the Stewardship Code has contributed to more active exercise of shareholder rights by institutional investors. This is evidenced by an increase in the proportion of dissenting votes cast(from 1.84% in March 2016 to 4.59% in March 2024) and a rise in the number of shareholder proposals. However, the effectiveness of the Stewardship Code has been still limited due to the absence of implementation review, insufficient systematic disclosure, and a lack of alignment with global standards. It was not possible to recognize the status of compliance with the Stewardship Code of individual participant as the implementation review was not officially provided. And even when participants reported the Stewardship Code implementation, the reports were posted only on their individual websites, resulting in the limitation of information access as well as the lack of comparability. Moreover, such information was difficult to v
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Dec 22, 2025

FSC Puts Forward Capital Market Reform Plans to Support Sustainable Foundation for Innovative Growth Ecosystem

Chairman Lee Eog-weon of the Financial Services Commission presided over the third meeting on propelling a transition to productive finance with officials from the venture industry, financial institutions, market infrastructure providers, and experts on December 22. At todays meeting, officials discussed plans for capital market reform initiatives intended to transform capital markets into a key platform for propelling innovative growth. In his opening remarks, FSC Chairman Lee laid out four major policy initiatives put forward by the government. A Summary of Opening Remarks by FSC Chairman Throughout history, some of the key technologies and innovative ventures, such as the Internet, smartphone, and autonomous driving technology, have been born out of bold investment and infrastructure restructuring by the government together with the private sectors inventiveness and push for drive. Capital market constitutes a platform where this type of collaborative effort by the public and private sectors can most effectively result in innovation. Since the market can selectively determine future potential and bear risks to invest in long-term growth, it can serve as the most appropriate and productive platform to push for a productive finance drive. In this regard, the government plans to pursue capital market reform measures intended to boost the efficiency in the functioning of capital market infrastructures and facilitate a more seamless interconnection between the financial sector and innovative companies. First, from a market infrastructure perspective, in order to ensure safety in the transactions of startup and venture stocks, authorities will allow the entry of electronic securities registries specializing in unlisted stocks. With the introduction of electronic registration of securities tailored for small scale and unlisted stocks, there will be increased convenience for stock transactions and management, which will also help startups and venture businesses to raise
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Dec 19, 2025

FSC Introduces Measures to Boost Confidence and Innovation in KOSDAQ Market

The Financial Services Commission introduced measures to boost confidence and innovation in the KOSDAQ market at the government work report session held on December 19. The measures are intended to bring about fundamental improvements in the KOSDAQ market by restoring public confidence in the market and reinvigorating it as a platform of growth for innovative companies, thereby spreading the momentum of KOSPI 4,000 throughout all segments of capital markets. Over the years, the KOSDAQ market has grown in terms of the number of listed companies and the value of market capitalization. In comparison to 2005, market capitalization rose 15 times (from KRW32 trillion to KRW489 trillion) and the number of listed firms grew 1.9 times (from 917 companies to 1,731 companies) However, the market has not been able to fully spring back from the lost confidence seen in the post dot-com bubble. As a result, the KOSDAQ index now stands lower than when it was first launched in July 1996 (1,000 pts). Moreover, non-viable companies are not getting delisted in a timely manner, and institutional investors have shown a tendency to avoid investing in the KOSDAQ market. As a key infrastructure for Koreas innovation and its venture ecosystem, the KOSDAQ market is in urgent need of an overhaul to make sure that it can properly function as it should. In this regard, the FSC held a series of meetings with market participants (venture capital firms, startup and venture businesses, institutional investors, and underwriters), academia, and related organizations to gather a variety of opinions before drawing up a set of measures intended to boost confidence and innovation in the KOSDAQ market. The measures consist of the following four key policy directions and seventeen specific tasks(a) strengthening the independence, autonomy, and competitiveness of the KOSDAQ market division, (b) redesigning the listing/delisting system to make the KOSDAQ market more dynamic with easy entry and exit, (c) foste
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Dec 19, 2025

FSC Plans a Sweeping Overhaul of Finance to Propel a Great Takeoff of the Korean Economy

The Financial Services Commission presented its work progress and policy agendas going forward in a government work report session jointly held with the Korea Fair Trade Commission on December 19 under the theme of pursuing a sweeping overhaul of finance, fostering a fair economy, and building robust foundations to propel a great takeoff of the economy. At the work report session, Chairman Lee Eog-weon of the Financial Services Commission presented progress and achievements in 2025 and key policy agendas going forward focusing on the vision to seek a sweeping overhaul of finance to make the financial industry more productive, more inclusive, and more reliable. With the pursuit of major transformation in the financial industry, Chairman Lee pledged to help propel a great takeoff of the Korean economy. Achievements in 2025 In the past six months, the FSC has worked relentlessly to help resolve the difficulties in peoples livelihoods and to build a new framework for financial policies. First, in order to quickly facilitate a recovery in peoples livelihoods, which had faced challenges from the COVID-19 pandemic and high interest rates, the FSC took bold steps in providing strong support measures. The establishment of New Leap Fund (Oct. 1) allowed the acquisition, screening, and cancellation of long-term overdue personal debts for 1.13 million individuals without even having these debtors needing to apply for this support. With the provision of credit recovery support in the form of expungement of overdue debt history (Sep. 30), 2.862 million individuals (as of end-Nov.) were able to make a recovery and regain footing financially. The FSC also held meetings with small merchants in twelve different occasions to more closely listen to their needs on the ground and introduced a special financing support plan in the size of KRW10 trillion-plus. Next, the FSC sought to actively manage household debt and contain tariff-related risks in the market, while making all-out efforts
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Dec 11, 2025

National Growth Fund Launched to Propel Reinvigoration of Korean Economy

The Financial Services Commission held the launching event for National Growth Fund on December 11, a comprehensive financial support program worth KRW150 trillion for five years aimed at propelling the countrys high-tech strategic industries. A private-public joint strategy committee for National Growth Fund, which is an advisory body composed of experts from diverse sectors, has also been organized and held the kickoff meeting on the same day. A Summary of Opening Remarks by FSC Chairman At the launching event, FSC Chairman Lee Eog-weon delivered opening remarks and spoke about the importance of mobilizing all necessary national capacities for ensuring a competitive edge amid the deepening of global competition over industries and technologies. As industries are driving innovation and growth with a vision for future and the financial sector is providing venture capital to innovative companies and promising enterprises, Chairman Lee underscored the significance of industries and financial sectors coming together in collaborative efforts with the government to provide a strong engine of growth for the economy. With the launching of National Growth Fund, Chairman Lee also urged financial companies to bolster their capacities to be able to more actively supply venture capital and make investment in high-tech strategic industries. Governance Structure National Growth Fund will be operated through a professional, fair, and transparent decision-making process. The ministerial meeting on strengthening industrial competitiveness (chaired by Deputy Prime Minister) will be utilized to ensure seamless coordination and collaboration between related ministries. A private-public joint expert strategy committee will be operated to regularly provide consultations on the direction of fund management and strategies for industrial support. There will be an investment deliberation committee and a fund management deliberation committee for the operation of a two-tiered decision-making
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Nov 19, 2025

FSC Announces Designation of CFIBEs and Capital Market Rules Change to Propel Supply of Venture Capital

The Financial Services Commission announced the designation of comprehensive financial investment business entities (CFIBEs)at the 20th regular meeting held on November 19. The FSC decided to designate Korea Investment Securities and Mirae Asset Securities as CFIBEs with the minimum equity capital level of KRW8 trillion, while Kiwoom Securities has been designated as a CFIBE with the minimum equity capital level of KRW4 trillion. Kiwoom Securities has also been authorized to engage in a short-term financing business. The newly designated CFIBEs have each been making relevant preparations for the operation of investment management account (IMA) and promissory note services, by acquiring the satisfactory level of personnel and facilities capacities, preparing internal control mechanisms, and setting up measures to prevent conflicts of interest. Korea Investment Securities and Mirae Asset Securities plan to develop IMA products with the goal of introducing them in the market within this year. Kiwoom Securities also plan to introduce promissory notes within this year. This will help to open up and diversify investment options and mechanisms made available for the public and facilitate the sharing of profits from CFIBEs asset management services. Meanwhile, the government approved the revision bill for the Enforcement Decree of the Financial Investment Services and Capital Markets Act (FSCMA) at the cabinet meeting held on November 18, 2025. The revised rules, which make CFIBEs subject to the supply of venture capital, are intended to propel the financial investment sectors transition toward productive finance. Along with expected revisions to subordinate rules and regulations, the revised Enforcement Decree will take effect next week (between November 25 and 27). Key Revision Details Requiring CFIBEs to supply venture capital To promote more active supply of venture capital from the CFIBEs that are engaged in IMA and promissory note services, the revised rules will make
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Sep 19, 2025

FSC Holds Inaugural Meeting on Transforming Financial Industry for Productive Finance

Chairman Lee Eog-weon of the Financial Services Commission presided over the inaugural meeting on transforming the financial industry and seeking a transition toward productive finance on September 19. Todays meeting was joined by industry representatives from different regions and officials from different business sectors and sizes who shared their ideas and suggestions in collaborative efforts to seek growth in both the real economy and financial sectors. Key Measures I. Transforming Financial Industry for Productive Finance In his opening remarks, FSC Chairman Lee said that the Korean economy is currently standing at an inflection point where the role of finance is considered to be ever more critical in providing solutions to various problems, such as low growth and wealth gap, and rebooting growth in the economy. To seek a transition toward productive finance, Chairman Lee introduced plans to pursue transformation of the following three areaspolicy finance, financial business, and capital markets. (Policy Finance) Policy financial institutions will lead the channeling of capital toward high-tech and venture businesses and local economies. The KRW150 trillion National Growth Fund intended for future strategic industries and their supply chains and infrastructures will provide targeted investments. The role of policy financial institutions for providing guarantees on real estate financing will be downsized, while that for providing technology financing will be boosted. At the same time, policy financial institutions will develop region-specific financing models intended to spur growth of local economies. (Financial Business) By seeking improvements to the overall supervisory framework, specific sector-targeted transition measures will be pursued. In this regard, capital regulation in the banking and insurance sectors will be upgraded to bring them to more reasonable levels and to facilitate banks and insurance businesses to more actively supply capital to producti
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Sep 10, 2025

Government Plans to Set Up National Growth Fund Worth KRW150 Trillion to Propel Economic Growth

The Financial Services Commission along with related government ministries, industry officials, and financial companies held a public conference on September 10 to seek ways to propel economic growth through the establishment and operation of National Growth Fund in the size of KRW150 trillion-plus for the next five years. At the conference, the FSC introduced plans to establish National Growth Fund and its operating strategies. Key Details of National Growth Fund (Background) The high-tech strategic industries, such as artificial intelligence (AI), biotech, and robotics, are critical industries that could serve as a game changer for the prosperity of future generations. In attempt to position themselves as the leader in global competition over high-tech industries, each country has rolled out plans to introduce significant investments and high level tariffs to gain competitive edge. From the construction of Gyeongbu Expressway, the shifting paradigm of economic development toward the heavy and chemical industries and export sectors, and the establishment of high-speed telecommunications network, the Korean economy had shown strategic determinations at major turning points in the past. However, amid low birth and aging population and deepening competition over key industries, the factors that have traditionally been driving economic growth are rapidly deteriorating recently with this years growth expectation forecast to be near zero percent. Against this backdrop, it is imperative to propel future growth prospects of the Korean economy by strategically selecting key megaprojects to support their growth in response to global competition over high-tech industries. (Purpose) National Growth Fund created in the amount of KRW150 trillion will function as a key foundation to propel Koreas economic growth through industrial restructuring. Over the next five years, KRW150 trillion worth of investments will be made in high-tech strategic industries and related ecosystems (va
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Aug 25, 2025

Financial Authorities of Korea and Vietnam Meet to Discuss Strengthening Cooperation on Capital Markets

Vice Chairman Kwon Dae-young of the Financial Services Commission met with Vietnams Deputy Minister of Finance Nguyen Duc Chi at his office in Seoul Government Complex on August 25 as a follow-up to the bilateral summit meeting held between Korea and Vietnam on August 11, 2025. The meeting was also joined by Standing Commissioner Rhee Yunsu of the SFC (Securities and Futures Commission), a sub-commission within the FSC, Chairwoman Vu Thi Chan Phuong of Vietnams SSC (State Securities Commission), and the heads of VNX (Vietnam Exchange), HOSE (Ho Chi Minh City Stock Exchange), HNX (Hanoi Stock Exchange), and VSDC (Vietnam Securities Depository and Clearing Corporation). At the meeting, the authorities discussed ways to strengthen bilateral cooperation on capital markets. Vietnams Deputy Finance Minister Chi expressed appreciation while saying that KRX (Korea Exchange)s trading system, which was first introduced to Vietnam nine years ago but just became operational from May 5 this year, has been running stably. Based on this, the Deputy Finance Minister expressed the willingness to bolster policy support to leap forward as a highly dependable emerging market through stability in trading system and global competitiveness. In addition, SSC Chairwoman Phuong suggested the two countries to continue to work toward deepening cooperation in the areas of capital market supervision based on the upgraded trading system and virtual asset regulatory framework through sharing of policy experience and know-hows. FSC Vice Chairman Kwon congratulated Vietnams successful operation of upgraded trading infrastructure and its stock markets 25-year anniversary on July 28. Prior to that, in May this year, Vice Chairman Kwon said that the State Bank of Vietnam (SBV) issued confirmation letters permitting the Industrial Bank of Korea (IBK) and Korea Development Bank (KDB) to set up local operations in Vietnam after about six to eight years of wait. In this regard, Vice Chairman Kwon said that
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May 02, 2025

Sale of Virtual Assets by Non-profit Corporations and Exchanges will be Allowed From June

The virtual asset committee finalized the guidelines on sale of virtual assets by non-profit corporations and virtual asset exchanges, including permission on the issuance of real-name account for the purpose of virtual asset disposal and requirements to prevent money laundering and conflicts of interests. BACKGROUND Vice Chairman Kim Soyoung of the Financial Services Commission presided over the fourth meeting of the virtual asset committee on May 1 at the Government Complex Seoul. Joined by relevant ministry officials, agencies, and private sector experts, the committee finalized the guidelines on sale of virtual assets by non-profit corporations and virtual asset exchanges. The measure is a follow-up to the roadmap for allowing transactions of virtual assets by corporate entities. In addition, in response to growing concerns over investor harm caused by extremely volatile movements in virtual asset prices right after they become listed, the so-called listing pumps, the committee also discussed proposed revisions to the best practice guidelines for listing. key revision details Guidelines for Virtual Asset Disposal by Non-profit Corporations To ensure the proper level of internal controls and transparency, the guidelines for non-profit corporations will initially allow disposal of virtual assets by entities subject to external audit with five years or more in business operation and require them to establish an internal committee for prior reviews on the appropriateness of the donations and the plans for liquidation into cash. Given that virtual assets easy liquidation into cash is necessary for an adequate use of donated virtual assets, the virtual assets subject to donation will be limited to virtual assets that are traded in at least three Korean won-based exchanges only. Also, the donated virtual assets must be liquidated into cash immediately upon donation. In order to ensure safeguard measures for anti-money laundering, the guidelines strengthen verification
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Apr 09, 2025

FSC Introduces Plans to Improve Competitiveness of Corporate Financing by Securities Businesses

The Financial Services Commission announced plans to improve the competitiveness of corporate financing by securities businesses on April 9. Under the newly introduced plans, comprehensive financial investment business entities (CFIBEs hereinafter) will be subject to increased credit granting limits for corporate financing and required to supply 25 percent of capital raised from promissory notes and investment management account (IMA) for venture capital. The IMA scheme, which was first introduced in 2017 but has not been utilized since, will go through improvements. Based on the improved IMA scheme, the process for designating CFIBEs that are eligible to handle promissory notes and IMA will begin within this year. Moreover, the plans contain measures to provide incentives for overseas expansion of securities firms and regulatory reforms intended to bolster the soundness management over derivatives-linked securities (DLS) and derivatives-linked bonds (DLB). In June this year, the FSC plans to prepare and announce detailed measures to strengthen the soundness of real estate financing and liquidity management by securities firms and ways to improve rules on the soundness of CFIBEs. FSC Chairman Holds Meeting with CEOs of CFIBEs On April 9, FSC Chairman Kim Byoung Hwan held a meeting with the CEOs of ten major CFIBEs and introduced the governments plans to improve the competitiveness of corporate financing by securities firms centered on regulatory improvements for CFIBEs. At the meeting, Chairman Kim and the participants discussed future directions for securities businesses in sustaining an innovative growth of our economy and promoting value-up in capital markets. In his opening remarks, Chairman Kim underscored the important role of capital markets in making sure that our economy maintains vitality and continues to grow in the future. In this regard, Chairman Kim said that the plans being introduced today are intended to boost the role of securities businesses in co
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Jan 24, 2025

Follow-Up Measures to WGBI Inclusion to Promote Global Investors' Investment in KTBs

As follow-up measures to the governments plan to revamp Korea Treasury Bonds (KTBs) and Monetary Stabilization Bonds (MSBs) Investment Frameworkannounced in December 2024 following the WGBI inclusion, the Financial Services Commission (FSC) and relevant organizations proposed revisions to the enforcement decree and supervisory rules of the Financial Investment Services and Capital Markets Act (FSCMA) and provided authoritative interpretations. The measures are intended to introduce a consolidated trading scheme for KTBs and support smooth implementation of the Global Operating Model. Introducing Omnibus Trading Accounts for KTBs The introduction of omnibus settlement accounts for KTBsin June 2024 has enabled foreign investors to settle their KTB transactions via a consolidated account, without opening individual settlement accounts with custodian banks (e.g. a Korean branch of a foreign bank). However, it still remains unclear whether foreign financial investment service providers are allowed to place consolidated orders of KTB trading on behalf of their clients such as individual funds and investors to be linked with omnibus settlement accounts for KTB transactions. To address this issue, the FSC and relevant organizations provide authoritative interpretation that foreign financial investment service providers are allowed to consolidate their clients orders to be linked with omnibus settlement accounts for consolidated settlements. To make it further clear, the FSC has proposed revisions to the Regulations on Financial Investment Business to newly introduce omnibus trading accounts for KTBs.The introduction of omnibus trading accounts will enhance the convenience for foreign investors by consolidating the overall process of KTB transactions. Under the new scheme, foreign investors will be able to place trading orders via omnibus trading accounts opened with securities firms and banks; and settle the transactions through omnibus settlement accounts opened at Korea
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Jan 21, 2025

Reform Plans for IPO and Delisting Rules

On January 21, the Financial Services Commission and related organizations including the Financial Supervisory Service (FSS), Korea Exchange (KRX), Korea Financial Investment Association (KOFIA) and Korea Capital Market Institute (KCMI) held a joint seminar on improving initial public offering (IPO) and delisting rules, as part of the governments ongoing efforts for capital market reforms. At the seminar, the FSC unveiled reform plans for IPO and delisting rules and gathered feedback from various market participants. FSC Chairman Kim Byoung Hwan delivered his congratulatory remarks outlining the background and directions of the reform plans. The Chairman said that the market structural improvement is needed to boost the overall valuation of our capital market as the government has been pushing forward capital market reform initiatives since last year. Regulatory reforms on IPO and delisting rules will be pushed forward as another major task for the value-up initiatives, he emphasized. In regard with the IPO market, Chairman Kim said that reform plans will incentivize institutional investors to hold shares for a longer period under a lock-up commitment, which will help shift the IPO market more towards investments based on corporate value. Reforms will also strengthen the roles and responsibilities of underwriters for determining appropriate IPO prices and securing mid-to-long-term investors, he added. Regarding the delisting rules, Chairman Kim explained, the authorities will strengthen the requirements for companies to remain listed and streamline delisting procedures so that companies undermining market trust can be timely removed without delay. Along with this, Chairman Kim suggested that the government will consider overhauling the stock market structure to make it more efficient and provide stronger investor protection. We will seek differentiation and linkage between market segments so that companies can raise funds in the market tailored to their growth stage
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Jan 08, 2025

FSC's Annual Work Plan for 2025

The Financial Services Commission presented annual work plan for 2025 at the annual work report session jointly held for economic ministries under the theme of economic risk management and revitalization of the economy on January 8. With market stabilization at the top of policy priorities, the FSC plans to work on strengthening the function of financial services in support for peoples livelihoods while continuing to push for innovation in the financial industry. The FSCs annual work plan for 2025 is focused on three key goals(a) ensuring market stability and providing support for the real economy, (b) facilitating a recovery in peoples livelihoods, and (c) adapting to changes and promoting innovation in the financial industry. Under these broad objectives, the FSC plans to pursue nine specific policy agendas. Key Policy Agendas First, the FSC will work on ensuring market stability and providing support for the real economy. In close cooperation with related authorities and organizations, the FSC plans to establish an overarching framework that can help to ensure financial market stability through an array of measures, such as the continuing operation of market stabilization programs (about KRW100 trillion), introduction of financial stability account for financial companies, making improvements to the recovery and resolution regime of financial companies, and raising deposit protection limit to KRW100 million from the current level of KRW50 million. In addition, the FSC will continue to manage the pace of household debt growth within the level of annual GDP growth through the enhanced debt service ratio (DSR) rules and seek regulatory improvements on real estate project finance loans to prevent the recurrence of project finance loan defaults by strengthening the equity capital requirement for developers. At the same time, in order to bolster support for the real economy and industries, the FSC plans to expand the supply of policy funds to the largest level ever (KR
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Dec 24, 2024

Rule Changes on Treasury Stocks of Listed Companies Scheduled to Take Effect from December 31

The Financial Services Commission announced that the government approved the revision bill for the Enforcement Decree of the Financial Investment Services and Capital Markets Act at the cabinet meeting held on December 24. The upgraded rules on treasury stocks of listed companies will go into effect from December 31, 2024. Background Treasury stocks are considered as an important mechanism for shareholder return alongside dividends. However, in Korea, companies often acquired treasury stocks to bolster the control of their major shareholders. To address this problem, the government had prepared measures to upgrade rules on treasury stocks as a way to strengthen protection for ordinary shareholders and which constitute a part of broader efforts at reforming capital market regulations. In particular, this year, with the expansion of Corporate Value-up Program and growing number of market participants and companies showing interest in enhancing shareholder value, the volume of treasury stock acquisitions and cancellations by listed companies has risen to the highest level in seven years, increasing about 2.3 times and 2.9 times, respectively, compared with the previous year. Thus, the rule changes on treasury stocks of listed companies are focused on facilitating the voluntary efforts of listed companies in enhancing protection for ordinary shareholders and boosting value for shareholders. Key Revision Details The proposed rule changes are intended to (a) restrict the allocation of new shares to treasury stocks when companies spin-off business units, (b) strengthen disclosure requirements, and (c) close loopholes and remove regulatory arbitrage throughout the process of acquiring and disposing treasury stocks. First, allocating new shares to treasury stocks will be prohibited when companies spin-off their business units. When it comes to treasury stocks, currently, almost all shareholders rights, such as voting rights, dividend rights, and preemptive rights, are non-ex
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