Financial Services Commission to Implement Burden of Proof System in 9 Financial Public Institutions Including Financial Supervisory Service

[Asia Economy Reporter Kangwook Cho] The Financial Services Commission (FSC) is promoting a burden of proof system for nine public institutions under its jurisdiction, including the Financial Supervisory Service (FSS).

On the 30th, the FSC held the 9th plenary meeting of the Regulatory Verification Committee chaired by Vice Chairman Do Kyoo-sang, where it finalized the implementation plan for the burden of proof system for nine public institutions and reviewed 124 regulations including those under the Specialized Credit Finance Business Act, improving 10 of them.

According to this implementation plan, a total of nine financial public institutions will promote the government burden of proof system, including four public institutions subject to management evaluation: Korea Credit Guarantee Fund, Korea Deposit Insurance Corporation, Korea Asset Management Corporation (KAMCO), and Korea Housing Finance Corporation, as well as five others: Financial Supervisory Service, Korea Development Bank, Industrial Bank of Korea, Korea Inclusive Finance Agency, and Korea Securities Depository.

The FSC explained that the institutions autonomously identified provisions equivalent to regulations within their public institution regulations (a total of 116 provisions, 414 articles) by institution.

The FSC plans to start organizing Regulatory Verification Committees for each public institution, composed of a majority of civilian members, and prepare related internal regulations, beginning maintenance work within this year and completing it by the second half of next year.

Additionally, among the Specialized Credit Finance Business Act regulations, 124 regulations were classified into preliminary review (36 cases) and in-depth review (88 cases), with 10 cases subject to in-depth review improved.

The main improvement tasks (10 cases) include refining detailed requirements for credit card business licensing and improving business regulations related to new technology business financiers, among other institutional improvements aimed at rationalizing entry and business regulations in the specialized credit finance sector.

Previously, through the 1st to 8th Regulatory Verification Committees, the FSC classified a total of 818 regulations across 39 laws in 24 fields including the Capital Markets Act into preliminary review (304 cases) and in-depth review (514 cases), improving 141 cases (27.4%) of in-depth review regulations and reviewing the exclusion of 35 regulations.

The FSC plans to announce detailed contents of the improvements reviewed through this Regulatory Verification Committee process at the Digital Finance Council meeting next month and through legislative notice procedures next year.

This content was produced with the assistance of AI translation services.