Lee Bok-hyun "Foreign Financial Firms Also Strive to Manage Uncertainty and Strengthen Internal Controls"

Holding a Meeting with CEOs of Foreign Financial Companies

[Image source=Yonhap News]

Lee Bok-hyun, Governor of the Financial Supervisory Service (FSS), met with the CEOs of 11 foreign financial companies operating in Korea and urged them to manage risks in advance and strengthen internal controls to prepare for domestic and international uncertainties.

On the 12th, Governor Lee held a 'Foreign Financial Company CEO Meeting' at a hotel in Yeongdeungpo-gu, Seoul, emphasizing these points. He first explained that issues raised at the previous meeting, such as delays in foreign fund registration reviews and improvements in the won loan-to-deposit ratio regulations for foreign bank branches, have been resolved.

He stated, "We have strengthened our review capabilities by establishing a dedicated review department within the FSS and assigning four personnel exclusively for foreign fund reviews. We changed the application target of the won loan-to-deposit ratio regulation from banks with won loans of 2 trillion won or more to those with 4 trillion won or more, and improved the regulation to include part of short-term borrowings (up to 50% of long-term borrowings) among head office borrowings in the scope of recognized won deposits."

He also emphasized plans to build financial infrastructure in line with future global financial environment changes and actively promote regulatory innovation to seek continuous development of Korea's financial hub. Governor Lee explained, "We will enhance market credibility by abolishing the foreign investor registration obligation within the year, gradually mandating English disclosures for listed companies, improving dividend procedures, and strictly responding to unfair trade. We will also improve accessibility to the domestic bond market by establishing an international central securities depository and an integrated government bond account."

Additionally, he added that financial security regulations will be reorganized to meet global standards through measures such as easing network separation and cloud regulations and establishing autonomous security systems. The issues discussed on this day will also be actively coordinated with relevant ministries to ensure they lead to regulatory improvements and policy reflections.

Attendees from the banking sector included Kim Ki-jun, CEO of JP Morgan Chase; Jung Eun-young, CEO of HSBC; Heo Shao-jen, CEO of Industrial and Commercial Bank of China; and Nakamura Shinkichi, CEO of MUFG. From the insurance sector, Song Young-rok, CEO of MetLife Life Insurance; Nathan Michael Chong, CEO of AIA Life Insurance; and Edward Cobb, CEO of ACE Insurance attended. From the financial investment sector, Guo Mingzheng, CEO of Yuanta Securities; Jung Hyung-jin, CEO of Goldman Sachs Securities; Park Jong-hak, CEO of Barings Asset Management; and Park Cheon-ung, CEO of Eastspring Asset Management participated.

Governor Lee requested that foreign financial companies respond to the supervisory policy direction as the authorities are making efforts. He urged, "Please proactively respond to recent domestic and international uncertainties to maintain soundness and do your best in preemptive risk management. I ask the management to have a strong will and continuously strive to strengthen internal controls."

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