Photo News - Financial Services Commission

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Stronger financial cooperation sought with AfricaJun 17, 2024

The Financial Services Commission and the Korea Federation of Banks will invite and host the banking industry associations of Nigeria, Botswana, and Mauritiusand the Southern African Development Community from June 17 to 19 to seek stronger financial cooperation between Korea and Africa. The KFBsigned memoranda of understanding (MOUs) with the banking associations of Nigeria, Botswana, and Mauritiuson June 17to seek stronger cooperation and mutual development of the banking industries.FSCChairman Kim Joo-hyun attended the MOU signing event and delivered congratulatory remarks where he emphasized the importance of todays agreement as a beginning for seeking stronger cooperation between Korea and Africa. In this regard, Chairman Kim said that he hopes to see Koreas strong advantage and know-hows in the field of digital finance being able to make great contributions to Africas economic development going forward. Chairman Kim added that Koreas financial industry will also benefit and grow from this process.
FSC Chairman speaks about significance of public-private partnership in promoting export financing support for SMEs and MMEsJun 17, 2024

Chairman Kim Joo-hyun of the Financial Services Commission attended an agreement signing event held between Shinhan Bank and Korea Trade Insurance Corporation, which is aimed atpromotingcooperationbetween the two organizations in providingexport financing support for SMEs and MMEs on June 17. Under the agreement, a total of KRW1 trillion in export financing support will be made available for small- and medium-sized enterprises (SMEs) and middle market enterprises (MMEs) to help them to more effectively cope with the changing structure in global supply chains, explore new markets, and build production facilities in overseas markets. At the event, Chairman Kim said that it is particularly significant that the two organizations can share andexchangekey information andcloselycooperateonvarious support programs made available to SMEs and MMEs. Chairman Kim added that this kind of public-private partnership should be promoted to more effectively support overseas operationand business expansionof domestic enterprises.
12 Financial Companies to Provide KRW15 Trillion in Export Financing SupportJun 17, 2024

The Financial Services Commission and the Ministry of Trade, Industry and Energy held a meeting with major shipbuilders and financial institutions on June 17 to have talks on expanding export financing support for the shipbuilding industry. At today's meeting, measures to expand refund guarantee for shipbuilding contracts have been introduced through which 12 major banks and policy financial institutions will make available export financing support worth about KRW15 trillion to shipbuilders in the form of refund guarantees. With the recent rebound in the shipbuilding industry, five major banks will resume providing refund guarantees to mid-sized shipbuilders for the first time in eleven years. With the agreement signed today, Korea Trade Insurance Corporation will increase the guarantee ratio on refund guarantees from the previous level of 85 percent to 95 percent, which in turn will help to lower the guarantee burden on banks from the previous level of 15 percent to 5 percent. At the beginning of the meeting, FSC Chairman Kim Joo-hyun delivered opening remarks highlighting the significancethat commercial banks arenowable to resume the issuance of refund guarantees to shipbuilders. Chairman Kim added that the financial authorities will continue to closely communicate with industry officials to help resolve difficulties.
Vice Chairman holds media briefing on short sale reform measuresJun 13, 2024

Vice Chairman Kim Soyoung of the Financial Services Commission held a media briefing to announce the finalized version of short sale reform measures intended to prevent illegal short selling activities and protect investors on June 13. Under this plan, naked short selling activities will be prevented through establishment of electronic short sale processing and monitoring systems. Institutional and corporate investors will be required to set up internal control standards. The currently divergent stock borrowing conditions for institutional investors and retail investors will be made equal to create a level playing field. The severity of penalties on illegal short sales will be strengthened to ensure more effective enforcement of administrative sanctions.
Vice Chairman visits inclusive finance support center and holds talks on small-sum living expense loan programJun 12, 2024

Vice Chairman Kim Soyoung of the Financial Services Commission visited the central inclusive finance support center in Seoul on June 12 and held talks on the operation of the small-sum living expense lending program made available for vulnerable individuals. During his visit, Vice Chairman Kim emphasized the important role of microfinance assistance in seeking solutions to the problem of inequality and promoting inclusiveness in financial services. To help address these issues, the small-sum living expense loan program was launched in March 2023 to help improve access to microloan opportunities for vulnerable individuals who have low-credit backgrounds and often fall prey tothe danger ofillegal private lending activities. Since the introduction of this program, a total of 182,655 individuals received lending assistance worth about KRW140.3 billion as of the end of May 2024. To strengthen support made available through this program, authorities will allow theborrowers to have access to the small-sum living expense loanfor the second timeif their initial loan has been fully repaid. Moreover, authorities will also strengthen the provision of debt adjustment support for those having difficulties in paying back their loans.
Authorities hold meeting to check progress in implementing measures to seek a soft-landing in the real estate PF marketJun 05, 2024

The Financial Services Commission held a meeting with related authorities and industry groups on June 5 to review progress in the implementation of various measures intended to stabilize the real estate project finance market. For the application of upgraded standardstoevaluate financial viability of real estate development projects, financial industry groups will make relevant changes to their best practice guidelines and internal rules to be able to perform evaluation on development projects based on the upgraded standards and submit results to the Financial Supervisory Serviceuntilthe end of July this year. At the meeting, participants discussed various stabilization efforts made by individual financial sectors. For instance, savings banks are working to set up an additional fund worth more than KRW460 billion, while the specialized credit finance sector has set up another fund worth about KRW260 billion. Meanwhile, the delinquency rate on real estate project finance loans as of end-March 2024 rose to 3.55 percent (up 0.85 percentage points) from 2.70 percent at end-December 2023. Authorities saw that the rise indelinquencyrate was attributable to the strengthening of risk management by financial companies, and that the relatively high delinquencyrates exhibited by securities firms and savings banks werealsomanageable consideringhighlevels ofcapital ratios andreserves set aside in these sectors.
FSC signs MOU to promote AI-driven anti-vishing effortsJun 03, 2024

The Financial Services Commission signed a memorandum of understanding (MOU) with related ministries and organizations to strengthen cooperation for promoting AI-driven anti-vishing efforts on June 3. FSC Chairman Kim Joo-hyun signed the MOU, which will facilitate AI developers in the private sector to make use of the actual phone conversation data used in vishing scams for the purpose of developing AI-driven anti-vishing programs. With the MOU in place, cooperation between the telecommunications and financial sectors will be strengthened to promote development of diverse types of anti-vishing programs using AI technologies. In addition, there will be government-driven research and development projects that will seek to find ways to more effectively prevent and combat vishing scams.
FSC commemorates one-year anniversary of launching loan transfer serviceMay 29, 2024

Chairman Kim Joo-hyun of the Financial Services Commission presided over a meeting with users of the loan transfer service and officials from related organizations and financial companies to commemorate one-year anniversary of launching the loan transfer service and have discussions to seek further improvements on May 29. At the beginning of the meeting, FSC Chairman Kim Joo-hyun praised the successful introduction of loan transfer servicefirst for credit loans in May 2023 and then expanded to home-backed mortgage loans and jeonse loansduring the first year of its operation. As a result, Chairman Kim said that about 200,000 individuals were able to use this program to switch their existing loans worth about KRW10 trillion in total for lower interest rates, and on average were able to save about KRW1.62 million a year in interest payments. To continue to meet consumer demands, Chairman Kim said that financial companies need to think beyond just offering lower interest rates and take steps to help improve consumer convenience in accessing and operating loan transfer service, for instance, by offering on-site application process for the elderly to make the program more accessible and inclusive for all.
FSC holds first taskforce meeting on microfinance assistanceMay 28, 2024

Standing Commissioner Lee Hyung-ju of the Financial Services Commission presided over the first taskforce meeting on microfinance assistance with related organizations, industry officials, and private sector experts on May 28.The taskforce plans to hold a series of meetings to prepare specific measures on microfinance assistance to help the working class and self-employed business owners. At the meeting, FSC Standing Commissioner Lee said that macro-level uncertainties, such as sluggish growth in household income, coupled with structural changes, such as growth in e-commerce, have presented added strain on vulnerable groups. To address this, Standing Commissioner Lee said that it has now become more urgent than ever to make sure the availability of thorough protection for self-employed business owners. Thus, to make sure that microfinance assistance can provide effective solutions, the taskforce will focus on (a) helping to strengthen debt service capability of vulnerable individuals, (b) providing tailored support for debt restructuring, (c) making sure a steady supply of funds for microfinance assistance, and (d) seeking ways to boost convenience and make improvements in the administration of microfinance assistance.
FSC announces measures to support the covered bond marketMay 27, 2024

Vice Chairman Kim Soyoung of the Financial Services Commission attended an agreement signing event between Korea Housing Finance Corporation (HF) and five major commercial banks intended to facilitate payment guarantees on covered bonds on May 27. Following this agreement, HF will begin to provide payment guarantees oncovered bonds issued by banks starting from today. At theevent, the FSC also announced measures to support the covered bond market to facilitate commercial banks' supply of long-term, fixed interest rate mortgageloans. In his opening remarks, Vice Chairman Kim said that increasing the supply of long-term, fixed interest rate mortgage products should be considered as a persistent and ongoing policy task, regardless of the direction in the movement of interest rates. With the introduction of various measures intended to bolster demand for covered bonds and lower their issuance rates, Vice Chairman Kim said that it will be possible to provide fixed interest rate mortgages offering competitive rates even in times when interest rates are declining. The FSC plans to keep close tabs on the issuance and circulation of covered bonds along the way and seek additional measures and improvements to support the covered bond market.
Authorities hold meeting to discuss specific timelines for implementing measures to seek a soft-landing in the real estate PF marketMay 23, 2024

The Financial Services Commission held a meeting with related ministries and financial and construction industry groups on May 23 to go over specific timelines for implementing measures to stabilize the real estate project finance market. The proposed upgrade to the standards for evaluating the viability of development projects will be prepared by early June, which will be adopted by each financial sector, and financial companies will complete evaluating the financial viability of development projects based on the upgraded evaluation standards by early July. A syndicated loan planned to be established by the banking and insurance sectors is expected to go into operation around mid-June.Until the end of June, the financial authorities will issue no-action lettersto continue to make available some of the temporarily eased regulatory measures applicable to non-bank sectors.The authorities plan to hold meetings with the financial and construction industries once every two weeks to maintain close communication and frequently check policy implementation and market conditions.
FSC Vice Chairman holds meeting to see progress in the operation of youth savings accountMay 22, 2024

Vice Chairman Kim Soyoung of the Financial Services Commission held a meeting with officials from related organizations, representatives of the youth policy advisory group, and young adults who signed up for youth savings accounts on May 22 and held talks on the operation of the program and sought opinions for improving the system. From when the programwas launchedin June 2023 until April 2024, about 1.23 million individualssigned up for youth savings accounts, which offer higher savings rates and the incentive of matching contributions to young adults. During the meeting, FSC Vice Chairman Kim said that this program offers a foundation to help young adults accumulate assets, so that it should serve as an anchor to building asset portfolios for young adults. According to a recent survey, about 45 percent of young adults who have yet to sign up for the program showed a willingness to subscribe in the future. In June this year, the FSC will organize a focus group to facilitate discussions and gather more wide-ranging opinions to seek improvements. The FSC also plans to form a working group on youth finance with officials from related organizations and experts to explore various policy issues and areas that can help to address the needs of young adults.