Press Releases - Financial Services Commission

Press Releases

Period: start
~
end

1month 3month Reset

Requirement

Jun 23, 2026

Capital Market Rules Change on Disclosure of Treasury Share Holding Status Expected to Boost Corporate Value

The Financial Services Commission announced that the government approved a revision bill for the Enforcement Decree of the Financial Investment Services and Capital Markets Act (FSCMA) at the cabinet meeting held on June 23. The revised rules will strengthen requirements on the disclosure of listed companies treasury stock holding status and update relevant rules on the disposal of treasury stocks in line with the revised Commercial Act. Background The FSC had previously proposed capital market rules change on March 31 intended to promote the use of treasury shares by listed companies as a means to boost shareholder value in line with the mandatory cancellation of treasury shares promulgated under the revised Commercial Act. As a follow-up to the proposed rules change, the revision to the Enforcement Decree approved today expands the application of the duty to disclose the treasury share holding status and disposal plan to all listed companies that hold treasury shares. Previously, this disclosure requirement was in place only for the listed companies that hold one percent or more in treasury shares relative to the total volume of their stocks issued. In line with the updated rules under the Enforcement Decree, subordinate regulations and relevant corporate disclosure reporting standards will also be updated in time for implementation. Key Revision Details First, the scope of listed companies subject to the duty to disclose the treasury share holding status and disposal plan will be expanded. According to the revised Commercial Act, all companies should draw up their treasury share retention and disposal plans and have them approved at a shareholder meeting. As such, the revised Enforcement Decree expands the scope of listed companies subject to the duty to disclose the treasury share holding status and disposal plan to all listed companies that hold treasury shares from those that hold one percent or more in treasury shares in relation to the total volume of stocks
Attachment 1
Jun 23, 2026

FSC Launches Taskforce and Holds Kickoff Meeting to Seek Innovation in Capital Market Infrastructure

The Financial Services Commission launched a taskforce and held a kickoff meeting on seeking innovation in the capital market infrastructure on June 23. The taskforce aims to bring about improvements to the securities transactions and settlements infrastructure and facilitate a seamless digital transition and adoption of AI and blockchain technologies in the financial investment sector to boost the global competitiveness of Koreas capital markets. At the kickoff meeting, FSC Vice Chairman Kwon Dae-young delivered opening remarks underscoring the need to upgrade the capital market infrastructure and outlining key measures to achieve that goal. A Summary of Remarks by FSC Vice Chairman The taskforce will seek innovation in the capital market infrastructure with four basic principles centered on trust, shareholder protection, innovation, and market access. Today, market infrastructure has become more important than ever as it offers new experience for investors and provides a new impetus for market growth. In this regard, artificial intelligence (AI) and blockchain technologies are rapidly making these changes. Therefore, this taskforce will make use of the collective capacity and efforts of the government, private sector, and academia to thoroughly examine the risks and opportunities of seeking innovation in the capital market infrastructure. First, the taskforce will seek to design a globally leading capital market infrastructure and investment environment. Authorities will aim to draw up a roadmap for the shortening of the settlement period as early as October this year to ensure predictability in policy implementation. The shortening of the settlement period will free up tied-up liquidity, which will help to boost market efficiency. Additionally, the Korea Exchange (KRX) plans to gradually extend the trading hours with the opening of an after-market from September 14 and a pre-market potentially from the end of 2027. Along this line, the Korea Securities Depository
Attachment 1
Jun 18, 2026

FSC Holds Meeting on AX with Financial Companies and Introduces Updates to AI Guidelines in Financial Sector

The Financial Services Commission held a meeting on AI transformation (AX) in the financial industry with officials from financial holding companies, card companies, electronic financial service providers, related organizations, and research institutions on June 18. At the meeting, officials shared the latest AI trends in the financial sector and discussed ways forward and future directions for the government and the financial sector. At todays meeting, the FSC also introduced an updated version of the AI guidelines in the financial sector. A Summary of Remarks by FSC Vice Chairman FSC Vice Chairman Kwon Dae-young presided over the meeting and delivered opening remarks on the significance of AI transformation in the financial industry. Vice Chairman Kwon spoke about the potential of embracing AI agentic services in making financial services more productive, more inclusive, and more trustworthy, and suggested the following three key factors in designing a new framework for an era of AI transformation. First, there needs to be a regulatory and supervisory framework that can ensure a level playing field, without any special advantage or disadvantage attached to the use of AI. Second, there needs to be clear standards established to make sure that innovation is sought responsibly. With AI having a greater impact on consumer decision-making, there needs to be clear responsibility and authority established for financial companies, and the issue of global regulatory consistency also needs to be considered to ensure fair competition abroad. Third, there needs to be preemptive risk management to effectively cope with AI-related cyber risks that can be unpredictable in terms of their speed and scale. In addition, Vice Chairman Kwon also spoke about specific measures planned for establishing a new regulatory framework amid AI transformation. First, authorities will speed up the easing of the network separation requirement for financial companies AI cybersecurity purposes and s
Attachment 1
Jun 11, 2026

Household Loans, May 2026

In May 2026, the outstanding balance of household loans across all financial sectors increased KRW9.3 trillion (preliminary), growing at a faster pace compared with the previous month (up KRW3.5 trillion). (By Type) Home-backed mortgage loans edged up KRW4.0 trillion, rising at a slower pace compared with the previous month (up KRW5.5 trillion). Mortgage loans rose more rapidly in the banking sector (up KRW2.7 trillion up KRW3.2 trillion), while growing at a slower pace in the nonbanking sector (up KRW2.8 trillion up KRW0.8 trillion). Other types of loans went up KRW5.3 trillion, edging back up rapidly from a decline of KRW2.0 trillion a month ago, with credit loans (down KRW0.9 trillion up KRW3.4 trillion) bouncing back up at rapidly. (By Sector) In May 2026, household loans in the banking sector rose KRW6.9 trillion, growing more rapidly from the previous month (up KRW2.1 trillion). Banks own mortgage loans (up KRW1.4 trillion up KRW2.1 trillion) increased at a faster pace, while policy-based mortgage loans (up KRW1.4 trillion up KRW1.1 trillion) grew at a slower pace. Other types of loans (up KRW3.7 trillion) turned back up from a drop of KRW0.6 trillion in the previous month. In the nonbanking sector, household loans went up KRW2.3 trillion, growing at a faster pace compared with the previous month (up KRW1.4 trillion). Mutual finance businesses (up KRW2.1 trillion up KRW0.7 trillion) saw household loans rising at a slower pace, while insurance companies (down KRW0.4 trillion up KRW0.9 trillion), specialized credit finance businesses (down KRW0.2 trillion up KRW0.6 trillion), and savings banks (down KRW0.02 trillion up KRW0.2 trillion) all saw household loans edging back higher from the previous month. (Assessment) In May 2026, home-backed mortgage loans (up KRW5.5 trillion up KRW4.0 trillion) went up at a slower pace despite recent increases in housing transactions and group lending for apartment subscription. However, other types of loans (down KRW2.0 trillion
Attachment 1
Jun 10, 2026

FSC Chairman Holds Meeting with Financial Holding Companies to Discuss Ways to Bolster Cyber Defense Capacity in AX

Chairman Lee Eog-weon of the Financial Services Commission held a meeting with the CEOs of five major financial holding companieson June 10 and discussed ways to effectively respond to cybersecurity threats and voice phishing (vishing) attacks in an era of AI transformation (AX). At the meeting, Chairman Lee and the heads of financial holding companies discussed the risk of cybersecurity threats posed by frontier AI and deepfake vishing scams and ways to effectively respond to these newly emerging digital threats to help propel AI transformation in the financial industry. In his opening remarks, Chairman Lee talked about both challenges and opportunities presented by AI transformation and pointed out major threats posed by frontier AI models, such as Claude Mythos, as well as deepfake vishing scams that take advantage of AI technology. In this regard, Chairman Lee said that the government has put in place diverse measures and policies intended to bolster the AI-driven defense capabilities against AI attacks. For instance, the network separation rule will be eased for financial companies for their AI cyber defense purposes, and the utility of the AI-based anti-phishing sharing analysis platform (ASAP) has been ramped up to more effectively detect and prevent newly emerging types of phishing attacks. Moreover, Chairman Lee said that the government is planning to quickly introduce the strict liability rule in the financial sector to make financial companies more responsible and remedies more effective for victims. To strengthen the financial industrys response capacity against newly emerging digital threats in an era of AI transformation, Chairman Lee asked the financial holding companies to take the following steps. First, in response to cyber threats posed by frontier AI, financial holding companies are urged to actively participate in AI cybersecurity tests prepared by the government and take follow-up steps as deemed necessary. In preparation for the complete lifti
Attachment 1
May 25, 2026

Network Separation Rules to be Eased in Financial Sector to Boost Innovation and Cybersecurity in AI Transformation

The Financial Services Commission held a meeting on cybersecurity risks related to advanced AI models and response measures in the financial sector with chief information security officers (CISOs) from major financial companies and AI and cybersecurity experts on May 22. At the meeting, officials reviewed cybersecurity threats related to Mythos AI and discussed a set of measures intended to promote the use of AI by financial companies to enable them to more effectively respond to newly emerging cybersecurity threats from advanced AI models and develop more productive and innovative financial services in their attempt to make AI transformation. Speaking about the importance of building an AI-driven cyber defense system capable of shielding autonomous attacks originating from advanced AI models, Vice Chairman Kwon Dae-young of the Financial Services Commission said that cybersecurity risks presented by advanced AI models require financial companies to regularly conduct cyber hygiene practices, since it is not possible to make financial companies entirely immune to these newly emerging types of threats. In this regard, Vice Chairman Kwon further added that the AI transformation in the financial industry is much more than simply introducing a new technologyit involves a fundamental shift in how financial services are delivered. Key Measures I. Preemptively Identifying Cybersecurity Threats from Advanced AI Models In close cooperation with related government ministries, the FSC has been closely monitoring international discussions on a variety of issues concerning advanced AI models, including their potential and capacity to be utilized as a cybersecurity defense mechanism. In this process, the FSC will continue to maintain active communication with financial companies to provide and share any new factual findings and inform them about the need to strengthen cybersecurity measures if considered to be necessary. II. Promptly Establishing AI-driven Cyber Threat Defense Sys
Attachment 1
May 22, 2026

NICE Credit Information (NICE CI) Obtains Certificate to Operate in Vietnam from the State Bank of Vietnam

The Financial Services Commission announced on May 22 that the State Bank of Vietnam (SBV) granted a Certificate of Eligibility for Providing Credit Information Services to NICE Credit Information (NICE CI), which is NICE Information Services local subsidiary in Vietnam, on May 20. NICE CI will become fourth credit information service provider in Vietnam along with PCB (Jul 2013), FCBV (Dec 2024), and KCI (Dec 2024), in order of the time of authorization granted. For Vietnam, Korea is the largest FDI originating country, the second largest tourist sending country, and the third largest bilateral trade partner. In terms of overseas presence, Korean financial companies have the second largest number of overseas establishments in Vietnam (54 as of May 2026), second only to the United States (68). Shown by the recent license obtainment of Korea Development Banks Hanoi branch (Jan 2026) and Industrial Bank of Korea Vietnam (Apr 2026), and NICE CI (May 2026), Korean financial companies have been expanding their presence in the Vietnamese market across diverse sectors. The SBVs granting of certificate to NICE CI this time took only 10 months from the time of application in July 2025. The speedy result can be seen as a successful outcome of the Korea-Vietnam summit meeting (Apr 22), the high-level financial meeting between FSC Chairman Lee Eog-weon and SBV Governor Pham Duc An (Apr 24), and constant efforts to strengthen communication and build local relationship by the private sector and overseas diplomatic channels. NICE CIs operation scheduled for H1 2027 in Vietnam will help to improve local financial companies risk management systems. Through this, NICE CI will also support Vietnam to strengthen its non-performing loan (NPL) management capacity. Equipped with advanced service tools and reliable credit information infrastructure, NICE CI will help to boost the credibility of Vietnams financial markets. Moreover, NICE CI plans to seek ways to help to improve financial ac
Attachment 1
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
Attachment 1
May 20, 2026

Revised Rules on Whistleblower Reward and Strengthened Sanctions on Accounting Fraud to Take Effect from May 26

The Financial Services Commission announced that revision proposals for the Enforcement Decree of the Financial Investment Services and Capital Markets Act (FSCMA) and the Act on External Audit of Stock Companies have been approved by the government at the cabinet meeting held on May 20. Key Revision Details a) Improving rules on whistleblower reward On February 25 this year, the FSC introduced a plan to overhaul the whistleblower reward program to strengthen incentives for insiders to report unfair trading and accounting fraud. The approved rules change today is a follow-up measure to this plan, abolishing all caps (KRW3 billion for unfair trading and KRW1 billion for accounting fraud) on whistleblower rewards. In this regard, authorities will also seek to update rules on subordinate regulations in line with the changes in relevant legislation. First, with the reward payout caps abolished, the method for calculating the amount of whistleblower reward will be linked to the amount of illicit gains or penalties (up to 30 percent), calibrated to the level of contribution made by whistleblowers for uncovering rule-breaking activities. This method will significantly increase the amount of rewards payable if the scale of unfair trading or accounting fraud is extensive, which will help to provide more incentives for insiders to report wrongdoings. Second, a whistleblowers reporting submitted to an authority other than the FSC or the Financial Supervisory Service (FSS)such as the National Police Agency or the Anti-Corruption and Civil Rights Commissionwill also qualify for rewards as the establishment of an inter-agency consultative mechanism will ensure seamless referrals and information sharing between related authorities. Third, if the whistleblower is also an accomplice in unfair trading activities, reward payouts were not possible previously. However, under the revised rules, reward payouts will be made possible in part if the whistleblower did not coerce others to tak
Attachment 1
May 18, 2026

Household Loans, April 2026

In April 2026, the outstanding balance of household loans across all financial sectors increased KRW3.5 trillion (preliminary), growing at a similar pace compared with the previous month (up KRW3.5 trillion). (By Type) Home-backed mortgage loans rose KRW5.5 trillion, growing at a faster pace compared with the previous month (up KRW3.0 trillion). Mortgage loans in the banking sector (down KRW0.02 trillion up KRW2.7 trillion) edged back higher from a decline a month ago but expanded at a slower pace in the nonbanking sector (up KRW3.0 trillion up KRW2.8 trillion). Other types of loans dropped KRW2.0 trillion, edging back down from the increase of KRW0.5 trillion in the previous month with credit loans (down KRW0.2 trillion down KRW0.8 trillion) falling at a faster pace. (By Sector) In April 2026, household loans in the banking sector rose KRW2.2 trillion, growing at a faster pace from a month ago (up KRW0.5 trillion). Banks own mortgage loans (down KRW1.5 trillion up KRW1.3 trillion) edged back up, while policy-based mortgage loans (up KRW1.5 trillion up KRW1.4 trillion) grew at a slower pace. Other types of loans (down KRW0.6 trillion) shifted back lower from the growth of KRW0.5 trillion a month ago. In the nonbanking sector, household loans rose KRW1.3 trillion, growing at a slower pace compared with the previous month (up KRW3.1 trillion). Mutual finance businesses (up KRW2.8 trillion up KRW2.0 trillion) saw household loans growing at a slower pace, while savings banks (down KRW0.4 trillion down KRW0.02 trillion) saw household loans declining at a slower pace. Insurance companies (up KRW0.5 trillion down KRW0.4 trillion) and specialized credit finance businesses (up KRW0.1 trillion down KRW0.2 trillion) saw household loans edging back lower from the growth seen in the previous month. (Assessment) In April 2026, the outstanding balance of household loans (up KRW3.5 trillion up KRW3.5 trillion) expanded at a similar level compared with a month ago, despite a faster
Attachment 1
May 13, 2026

FSC Approves Revisions to KRX Listing Rules to Facilitate Effective Delisting of Unviable Companies

The Financial Services Commission approved a set of revision proposals to the Korea Exchange (KRX) listing regulations at the 9th regular meeting held on May 13. The FSCs approval today follows the previously announced plan (Feb. 12, 2026) to strengthen delisting rules to make the domestic stock markets more dynamic by facilitating a seamless entry of innovative companies and ensuring a swift and strict removal of unviable companies. Key Revision Details The revised KRX listing regulations will strengthen or newly introduce the following four key standards considered for delisting. First, the upward adjustment of market capitalization threshold for KOSPI-listed and KOSDAQ-listed companies, previously scheduled to take place from January 1, 2027 and January 1, 2028, with the market cap threshold rising to KRW30 billion and KRW50 billion for KOSPI-listed companies and to KRW20 billion and KRW30 billion for KOSDAQ-listed companies, respectively, will move up six months early each time. As a result, the market cap threshold for delisting will be raised from KRW20 billion currently to KRW30 billion for KOSPI-listed companies from July 1, 2026, and then to KRW50 billion from January 1, 2027. For KOSDAQ-listed companies, the market cap threshold for delisting will be raised from KRW15 billion currently to KRW20 billion from July 1, 2027, and then to KRW30 billion from January 1, 2027. Along this line, there have been also changes in specific standards and procedures to prevent the occurrence of temporary stock price pumps for avoiding delisting. Previously, companies went on the delisting watch list if they failed to stay above the market cap threshold for thirty consecutive trading days during a period of ninety trading days from the time of being designated on the watch list, but could avoid delisting if they were able to stay above the market cap threshold for ten consecutive trading days and thirty cumulative trading days during that time. However, this market cap requ
Attachment 1
Apr 30, 2026

FSC-MSS and Five Financial Holding Groups Sign MOU to Promote Startup and Venture Investment Ecosystem

The Financial Services Commission and the Ministry of SMEs and Startups signed a memorandum of understanding (MOU) on promoting a transition to productive finance, expanding venture investments, and enhancing cooperation for the Startup for All project with five financial holding groups and related industry organizations on April 30. The MOU will facilitate the provision of funding support by five financial holding groups for the startup and venture investment ecosystem, accelerating the transition to productive finance and helping to create conditions where anyone with an innovative business idea can make an attempt to launch a startup. The MOU signing ceremony was held with participation by Minister Han Seong-sook of the Ministry of SMEs and Startups, Chairman Lee Eog-weon of the Financial Services Commission, the CEOs of five financial holding groups and the heads of related industry organizations. The following are key details of the MOU. First, to help promote venture investments in the private sector, the five financial holding groups will create a venture fund worth KRW800 billion in total until 2029, starting with an input of KRW400 billion this year. In particular, Hana Financial Group will provide a leading role as it pledged to provide a total of KRW400 billion (KRW100 billion every year) to lead the venture investment effort. In this regard, the government plans to provide incentives (e.g. extra tax exemption) to promote participation from the private sector. In addition, the five financial holding groups will work to strengthen investment and cooperation with policy-based funds. The five financial holding groups will make joint contributions together with policy-based funds to create a growth fund (LP) in the amount of KRW100 billion and a regional growth fund in the amount of KRW20 billion to facilitate the supply of venture capital in the startup ecosystem. The five financial holding groups will also provide relevant support through their overseas off
Attachment 1
Apr 29, 2026

FSC Chairman Meets with Fintech Businesses and Announces Plan to Upgrade Fintech Support Programs

The Financial Services Commission organized a gathering event for fintech businesses, financial companies, investment firms, policy financial institutions, and related industry associations on April 29 to facilitate collaboration and investment and open up new opportunities for fintech startups. At the beginning of the event, FSC Chairman Lee Eog-weon delivered opening remarks. A Summary of Opening Remarks by FSC Chairman Over the past ten years, fintech businesses have led innovation in Koreas financial industry. However, the financial industry now stands once again at a critical juncture as the advancement of AI technology presents new challenges not only in terms of the speed of the change it brings but also in how it changes and restructures the way financial services work. In this regard, AI transformation (AX) is not a choice but a reality that should be embraced actively in the financial sector, and fintech businesses should be at the forefront of the innovation and challenge to propel the financial industrys move toward AI transformation (AX). To facilitate this, the FSC plans to upgrade fintech support programs by first making the provision of support more effective and targeted (e.g. AI, data, regional enterprises, young entrepreneurs, etc.) Additionally, the FSC will seek bold reforms in regulations to establish a legal ground for stablecoins and seek regulatory improvements on the use of data to help to remove obstacles in developing new and innovative services. Building bridges between individuals and between different ideas is a key to innovation. The FSC will continue to work to build bridges between financial companies, investors, and fintech businesses to promote investments in innovative fintech businesses. Upgrading Fintech Support Programs First, the provision of fintech support will be made more selective and targeted for regional startups and young entrepreneurs and in the areas of AI transformation (AX). To boost the effectiveness in the provi
Attachment 1
Apr 26, 2026

FSC Chairman Visits India and Vietnam to Open Up New Opportunities and Bolster Financial Cooperation

Chairman Lee Eog-weon of the Financial Services Commission traveled to India and Vietnam to strengthen financial cooperation with the two countries on the sidelines of President Lee Jae Myungs state visits from April 19 to 25. During his trips, Chairman Lee had high-level bilateral meetings with government officials to promote the overseas expansion of Korean financial companies and facilitate their business operations in local markets, attended financial cooperation forums for the development of financial hubs and the integration of cross-border QR payments system, and held meetings with Korean financial companies and enterprises doing business in the two countries. Chairman Lees visit to the two rapidly growing countries underscores the Korean governments aim to bolster strategic cooperation with the two major partners in the region particularly in the areas of financial services. FSC Chairmans Visit to India India is emerging as a key economic partner of Korea with a population of over 1.4 billion, the fourth largest economy in the world, and an annual economic growth rate of about seven percent. However, financial cooperation between Korea and India has remained at an early stage. Thus, on the occasion of President Lee Jae Myungs state visit, the FSC has sought to lay foundations to strengthen bilateral financial cooperation with India. Meeting with Indias Minister of Finance FSC Chairman Lee met with Indias Minister of Finance Nirmala Sitharaman on April 20 and had discussions on ways to bolster financial cooperation between the two countries. At the meeting, the two sides exchanged views on knowledge sharing and ways to enhance cooperation in the areas of fintech and the cross-border QR code payments system. The two leaders also had an in-depth discussion on ways to expand bilateral investments and strengthen cooperation in startups making use of Indias National Investment and Infrastructure Fund (NIIF). The financial leaders of the two countries agreed to con
Attachment 1
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
Attachment 1
Apr 21, 2026

Capital Market Rules Change Allowing the Introduction of Single-stock ETFs to Take Effect from April 28

The Financial Services Commission announced that revisions to the Enforcement Decree of the Financial Investment Services and Capital Markets Act (FSCMA) allowing the introduction of single-stock exchange-traded funds (ETFs) have been approved by the government at the cabinet meeting held on April 21. The revised rules will upgrade the rules on the domestic ETF market and help to close the regulatory gap existing between the domestically listed ETFs and the overseas listed ETFs. The revised rules will be promulgated and become effective from April 28. Key Revision Details a) Allowing the introduction of single-stock ETFs (same rules to be applied on ETNs) In major overseas markets, such as the U.S. and Hong Kong, there are single-stock ETFs that are available for Korean investors to trade via the mobile applications of domestic securities firms. However, in the domestic market, introducing single-stock ETFs or single-stock ETNs has not been possible thus far due to the dispersed investment rule requiring ETFs to have at least ten underlying items with maximum 30 percent limit on each item. This has led to the problem of the domestic market environment not being able to sufficiently meetinvestors demands for diverse types of ETF investment. Against this backdrop, the FSC sought regulatory reforms to make domestic rules more consistent with global standards to facilitate more inflow of investments from overseas, while enhancing protections and convenience for investors to help prevent the outflow of investment capital. Under the revised rules, introducing single-stock ETFs tracking blue-chip stocks will be allowed in the domestic market, and the maximum level of exposure allowed will be restricted to 200 percent (2x leverage). The criteria for underlying stock items and product types will be prescribed under the subordinate rules as follows. Underlying stock items need to meet the following criteria(a) a minimum market cap ratio of 10 percent, (b) a minimum trading vo
Attachment 1
Apr 20, 2026

Financial Companies Will be Able to Use Cloud-based Software as a Service on Internal Network from April 20

The Financial Services Commission announced that financial companies and electronic financial service providers will be able to adopt and use cloud-based Software as a Service (SaaS) for various types of administrative and back office functions without the need to go through an approval process under the financial regulatory sandbox program from April 20. The revised rules on the supervision of electronic financial services went into effect on April 20, granting financial companies exemption to the network separation rule for the use of SaaS in their internal networks on the condition that they comply with certain security requirements. Key Revision Details First, SaaS programs specified under the Enforcement Decree of the Act on the Development of Cloud Computing and Protection of Its Users will be exempted from the network separation rule pursuant to the Electronic Financial Transactions Act and the supervisory regulation on electronic financial services. However, to prevent potential breaches of personal information, the exemption form the network separation rule will not apply to the handling of personal identification information or personal credit information. For the use of pseudonymized personal data in their SaaS programs, financial companies will still need to get an approval through the financial regulatory sandbox program. Second, with the granting of exemption from the network separation rule, financial companies will be required to maintain a more rigorous level of information protection control measures. More specifically, financial companies will need to (a) have their SaaS programs pre-screened by the Financial Security Institute (FSI), (b) maintain strict IT security protocols (certification, authorization, etc.) for access devices (computers and mobile devices), (c) have their compliance measures evaluated every six months and report finding to their chief information security officers (CISOs). To facilitate the adoption of various IT security and
Attachment 1
Apr 16, 2026

Capital Regulations and Requirements to be Improved for Banks and Insurers to Promote Productive Finance

Chairman Lee Eog-weon of the Financial Services Commission presided over the fifth meeting on propelling a transition to productive finance with officials from the Financial Supervisory Service, the banking and insurance sectors, and related industry groups on April 16. At todays meeting, officials discussed ways to improve upon the capital regulations and requirements for banks and insurers to help strengthen their capital capacity aimed at productive finance. With the participation of private sector experts, officials also discussed the impact of the Middle East situation on domestic industries and went over the progress of financial assistance measures made available from the financial industry. A Summary of Opening Remarks by FSC Chairman The situation in the Middle East is raising concerns about an expanded level of volatility in financial markets. With many businesses undergoing the challenges of rising costs and financing difficulties, it is very much appreciated that the financial sector has made available KRW53 trillion-plus in financial assistance programs. As the situation in the Middle East may continue to go on for a while, it is important to provide support more proactively. In this regard, the FSC will work to maintain financial market stability and make certain that the risks originating from the Middle East do not translate into a financial market contraction or a drag in the real economy. Moreover, in order to be adequately prepared for a potential shift in global supply chains and a restructuring of industries in a post-war period, the FSC will continue to push forward with our productive finance initiatives to promote energy transitions and the growth of strategic industries. The measures to improve upon the capital regulations and requirements for banks and insurers, which are being announced today, will free up their productive finance capacity by up to KRW98.7 trillion (KRW74.5 trillion for banks and KRW24.2 trillion for insurers). As such, th
Attachment 1
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
Attachment 1
Apr 14, 2026

High-tech Industry Investment Worth KRW50 Trillion-plus Planned for Five Years through National Growth Fund

The Financial Services Commission announced that the private-public joint strategic committee on National Growth Fund (NGF) held its second committee meeting on April 14. At todays committee meeting, officials announced a second batch of investment megaprojects sought by the NGF and discussed specific investment plans that are aimed at strengthening the foundation of high-tech industries and their ecosystems. The second batch of megaprojects has been drawn up based on the significant impact each industrial project can have on high-tech industrial ecosystems and considering the need to promote the growth of regional economies. In this regard, under the second batch of megaprojects, the NGF will provide investment and/or lending support for the following high-tech strategic projects(a) next generation biotech and vaccines, (b) OLED display facility, (c) future mobility and defense, (d) sovereign artificial intelligence, (e) energy infrastructure development, and (f) Saemangeum development project (robotics, hydrogen, AI and energy). NGF Investment Plans for High-tech Industries The FSC plans to inject investments worth KRW50 trillion-plus for the next five years in the form of direct and/or indirect investment and lending support for the development of high-tech industries and their value chains to foster the creation of strong and innovative industrial bases. a) KRW35 trillion in indirect investment via private-public joint investment fund A private-public joint investment fund in the amount of KRW35 trillion will be operated through 20 different types of feeder funds to help close the loophole in investment blind spots across various industries. This will facilitate a bold injection of investment support in the areas that have been previously overlooked by policy-based funds in the past. With the establishment of a scale-up fund and an ultra-long-term (minimum 10 years) technology investment fund, large-scale growth capital and long-term investment will be provided
Attachment 1