FSC Korea announced ways to improve the credit recovery support system. Among other measures, up to one-year loan deferment program being offered to those impacted by the pandemic will be extended to include those who have been laid off and/or have experienced business closure. The updated measures are expected to go into effect in November this year. FSC and FSS also signed a Memorandum of Understanding with BOT on comprehensive cooperation in the areas related to the financial sector and innovation in financial services. The Memorandum provides a basis for mutual cooperation on experience sharing, technical assistance, and exchange of information regarding functions such as supervisory model, operational mechanism, and regulations on innovative financial services.
FSC Korea also announced that financial groups are now required to disclose information on specific areas and 25 sub-categories such as general management status, corporate governance structure, internal control, risk management, capital adequacy requirements, internal transaction, and capital or credit extension to major shareholders. Pursuant to the best practice guidelines on the supervision of financial conglomerates, financial groups will begin to disclose information through a group-wide integrated disclosure format starting from the end of September this year. Quarterly disclosures are due within three months prior to the end of every quarter and annual disclosures are due within five months and fifteen days from the end of every fourth quarter. With the availability of information on group-wide risk factors and risk management status in an easily understandable format, the newly introduced integrated disclosures by financial groups will provide useful information to consumers and investors while boosting risk management capabilities of financial companies through market-based approaches. Meanwhile, the government will continue to work for the enactment of the legislation on the supervision of financial conglomerates.
- Press Release on Credit Recovery Support System (PDF)
- Press Release on MoU with BOT (PDF)
- Press Release on Integrated Disclosures (PDF)
Keywords: Asia Pacific, Korea, Banking, COVID-19, Financial Conglomerates, Credit Risk, Loan Moratorium, Disclosures, BOT, FSC
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