FSC Grants Incentives for Savings Banks' Policy Products and Non-Metropolitan Loans

The financial authorities have decided to provide incentives for policy-based financial products for low-income individuals and loans outside the Seoul metropolitan area offered by savings banks. When calculating the loan ratio within a savings bank's business area, policy financial products such as Sunshine Loan will be given a weighting of 150%, the same as private mid-interest rate loans. The Financial Services Commission announced on November 5 that it had approved a partial amendment to the “Supervisory Regulations on Mutual Savings Bank Business” containing these measures during its regular meeting. The amendment aims to improve systems related to the “Plan to Enhance the Role of Savings Banks” announced on March 20, as well as to revise other regulations, and takes effect starting today. First, in order to expand support for low-income individuals and small business owners, the financial authorities will apply a 150% weighting to policy financial products such as Sunshine Loan w

Policy

11.05 17:20

"Invest Your Leftover Travel Money in U.S. Stocks"... Financial Services Commission Designates Innovative Financial Services

In the future, when using the Travel Wallet service, customers will be able to transfer their remaining foreign currency prepaid balance after an overseas trip to a securities brokerage account and invest it in U.S. stocks and other assets. On November 5, the Financial Services Commission announced at its regular meeting that it had newly designated three services as innovative financial services, including a foreign currency prepaid balance-based overseas stock investment service. The newly designated innovative financial services are: ▲ a foreign currency prepaid balance-based overseas stock investment service, ▲ a customized savings and deposit recommendation service for financial education for future generations, and ▲ a customized savings and deposit recommendation service for financial education for future generations. Previously, the Travel Wallet service allowed consumers to receive their remaining foreign currency prepaid balance only in Korean won after an overseas trip. Now,

Policy

11.05 16:20

Capital Outflows by Overseas Investors Push Net Foreign Asset Ratio to Record High... "Need to Keep Improving Investment Conditions in Korean Stock Market"

There is an analysis suggesting that, in order to prevent the increase in South Korea's net foreign assets (NFA) from leading to negative outcomes such as the weakening of the domestic capital market investment base due to capital outflows and continued downward pressure on the exchange rate, it is necessary to improve the investment environment in the domestic stock market and to promote domestic investment by pension funds. According to the "BOK Issue Note ? Assessment of Net Foreign Asset Stabilization Potential and Implications (Hee-Eun Lee, Yejin Jang)" published by the Bank of Korea on the 5th, South Korea's NFA has been rising rapidly since 2010 as external financial assets have increased faster than external financial liabilities, turning positive from the third quarter of 2014. In the fourth quarter of last year, it exceeded 1 trillion dollars for the first time. As of June, it stood at about 55% of the country's gross domestic product (GDP), which is the second highest annua

Policy

11.05 12:05

[The Editors' Verdict] From a Nation That Erases Delinquencies to One That Remembers Diligence

The record-breaking credit amnesty implemented by the Lee Jaemyung administration in August has begun to take shape, shaking the foundations of financial order. On the surface, the measure, which erases the delinquency records of debtors unable to repay their debts, appears to be a policy aimed at supporting ordinary citizens. However, beneath the surface lies a sense of disillusionment among those who have repaid their debts faithfully, as well as the risk of moral hazard that undermines market trust. In the second half of this year, the total debt held by beneficiaries of the credit amnesty amounted to 163 trillion won, of which only 23 trillion won (14%) was actually repaid. The remaining 140 trillion won or so remains outstanding. Notably, beneficiaries prioritized repaying card loans and loans from private lenders, both of which have a significant impact on credit scores. In fact, the repayment rate for the card industry was 25.5%, and 19.7% for private lenders?higher than in othe

Policy

11.05 11:33

Lee Chanjin Meets Directly with Financial Consumers for Complaint Consultations

Lee Chanjin, Governor of the Financial Supervisory Service, conducted on-site consultations with visitors who came for civil complaints at the Financial Civil Complaints Center on the first floor of the Financial Supervisory Service headquarters. By meeting directly with financial consumers and sincerely listening to their concerns, the Governor demonstrated his commitment to broadening empathy with consumers and thereby enhancing their trust in the institution. On November 5, the Financial Supervisory Service announced that Governor Lee, along with 11 other executives and staff members, provided information on the "Financial Supervisory Service Executive Civil Complaints Consultation Day Operation Plan" at the Financial Civil Complaints Center. Governor Lee met directly with complainants involved in major current issues, such as the Belgium Fund and indemnity health insurance, to understand the difficulties faced in the financial sector and to seriously explain the standards and direc

Policy

11.05 11:30

One Year Since KOFR Introduction, Transactions Surge 70-Fold... "Loan Adoption to Lower Borrower Interest Rates"

One year after the financial authorities and the Bank of Korea launched a roadmap to promote the Korea Overnight Financing Repo Rate (KOFR), the domestic risk-free benchmark rate, the volume of interest rate swap (OIS) transactions based on KOFR has increased by approximately 70 times. The authorities plan to accelerate benchmark rate reform by introducing KOFR-based loan products and removing the Certificate of Deposit (CD) rate from the list of key benchmarks, aiming to firmly establish KOFR as the reference rate for domestic financial transactions. On November 4, the Bank of Korea and the Korea Institute of Finance held a joint conference titled "Policy Tasks for the Development of the Short-Term Money Market and Activation of KOFR" at the Bank of Korea annex in Jung-gu, Seoul, where they announced these initiatives. KOFR is a benchmark rate calculated based on the most actively traded ultra-short-term interest rates, such as call rates and repurchase agreement (RP) rates. Because i

Policy

11.04 16:37

"Credit Card Companies and Loan Businesses Now Required to Verify Identity for Loans... Fines for Violations"

The Financial Services Commission announced on November 4 that a partial amendment to the Enforcement Decree of the Act on the Refund of Damages from Telecommunication Fraud, which strengthens the responsibility of financial companies to prevent voice phishing, was approved at a Cabinet meeting. This amendment is a follow-up measure to the "Plan to Strengthen Response to Voice Phishing," which was announced at the Livelihood Crime Inspection Meeting on March 6. It expands the scope of financial companies required to verify the identity of users applying for loans to include specialized credit finance companies (excluding new technology business finance companies) and loan businesses with assets of 50 billion won or more. The Act on the Refund of Damages from Telecommunication Fraud stipulates account payment suspension and victim reimbursement to prevent voice phishing (telecommunication financial fraud) and ensure prompt refund of damages. Until now, it has mainly regulated banks, sav

Policy

11.04 16:37

Government to Expedite Resolution of Underperforming Card and Capital Firms

The government is expediting management improvement procedures for underperforming credit card companies and capital firms, as well as other specialized credit finance companies. The plan is to overhaul the prompt corrective action system for specialized credit finance companies experiencing management difficulties, in order to accelerate their turnaround.Financial Services Commission Announces Revision to Supervisory Regulations for Specialized Credit Finance CompaniesOn November 3, the Financial Services Commission announced a revision to the supervisory regulations for specialized credit finance companies, with a focus on improving the prompt corrective action system for these firms. Specialized credit finance companies refer to businesses such as card companies, digital lenders, and leasing companies that provide credit without accepting deposits. Prompt corrective action is a measure taken by financial authorities when a financial institution's financial condition falls below a ce

Policy

11.04 15:57

Sharp Rise in Government Repayment Rate for Low-Income Loans... Concerns Over Budget Shortfall

FSC Grants Incentives for Savings Banks' Policy Products and Non-Metropolitan Loans

"Invest Your Leftover Travel Money in U.S. Stocks"... Financial Services Commission Designates Innovative Financial Services

Capital Outflows by Overseas Investors Push Net Foreign Asset Ratio to Record High... "Need to Keep Improving Investment Conditions in Korean Stock Market"

[The Editors' Verdict] From a Nation That Erases Delinquencies to One That Remembers Diligence

Lee Chanjin Meets Directly with Financial Consumers for Complaint Consultations

One Year Since KOFR Introduction, Transactions Surge 70-Fold... "Loan Adoption to Lower Borrower Interest Rates"

"Credit Card Companies and Loan Businesses Now Required to Verify Identity for Loans... Fines for Violations"

Government to Expedite Resolution of Underperforming Card and Capital Firms

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