The Financial Services Commission (FSC) finalized on May 17 its fifth basic plan pertaining to the Creation and Development of Financial Hubs Act, which will cover the period of 2020 to 2022.South Korea’s plan to turn into a Northeast Asian financial hub was initiated in December 2003 by the governm
With the Mahindra Group having canceled its 230 billion won investment in SsangYong Motor Co., the Financial Services Commission (FSC) said on April 6 that creditors, shareholders, employees and employers will seek a solution by joining forces.According to the FSC, the Mahindra Group recently announ
The author is an analyst of NH Investment & Securities. He can be reached at ys.jung@nhqv.com. -- Ed. Impacted by unprecedented flight disruptions and reduced passenger demand, sales decline at domestic airlines appears inevitable. With fixed cost burden intensifying, large-scale 1Q20 operating loss
The Financial Services Commission (FSC) announced on March 13 that short selling in the South Korean stock market would be banned until Sept. 15 this year. Nonetheless, short selling by institutional investors is continuing with Korea Exchange making an exception of liquidity suppliers and market ma
The Korean government is moving to cut the aircraft property tax by 25 percent to 30 percent for full service carriers (FSCs) such as Korean Air and Asiana Airlines.Currently, a 50 percent reduction in the aircraft property tax is offered to low cost carriers (LCCs) under the Restriction of the Spec
The following is an analysis of the Financial Services Commission's recent decision to tighten regulations on the short-selling of stocks. The author is an analyst of Shinhan Investment Corp. He can be reached at sangho.kim@shinhan.com. -- Ed. The Financial Services Commission (FSC) announced on
The author is an analyst of NH Investment & Securities. He can be reached at ys.jung@nhqv.com. -- Ed. In February, passenger demand plunged due to the global spread of Covid-19, a trend that is expected to continue in March. The recent cargo demand improvement is set to prove temporary, and it is un
The author is an analyst of Shinhan Investment Corp. She can be reached at heeyeon.lim@shinhan.com. -- Ed. Structural reform of indemnity/auto insurance to lead to reasonable premium adjustment in 2020The Financial Services Commission (FSC) has included the structural reform of medical indemnity and
The Financial Services Commission met with financial group CEOs and released new financial group supervision guidelines on Feb. 24. According to the new guidelines targeting Samsung, Hyundai Motor, Hanwha, Mirae Asset, Kyobo and DB, the commission will look into their shareholdings in non-financial
The authors are analysts of NH Investment & Securities. Jung Jun-sup can be reached at junsup@nhqv.com. -- Ed. With its acquisition of Baro I&S, Kakao Pay has entered the securities industry. Aside from the likely impact on financial products markets, we believe the acquisition will have limited eff
The Financial Supervisory Service (FSS) has completed a total inspection of private equity funds (PEFs) after risks related to Lime Asset Management came to the surface two months ago.According to the FSS, some PEF firms are running their funds in a similar way to Lime. They include two firms in clo
Co-reinsurance in the insurance sector is expected to be introduced in April this year. Risks related to interest rate fluctuations are expected to be shared with reinsurance companies and insurance companies’ reverse margin and recapitalization burdens are expected to be alleviated.The Financial Se
Individual investors' minimum investment in hedge funds will be raised from the current 100 million won to 300 million won.Eun Sung-soo, chairman of the Financial Services Commission, announced on Nov. 14 a set of measures designed to protect investors in high-risk financial products. The FSC’s
Financial Services Commission (FSC) Chairman Eun Sung-soo has suggested a shift in his stance on private equity funds (PEFs) towards tightening regulations for investor protection.During a news conference on Oct. 10 held to mark his first month on the job, Eun said he had at first agreed with the co
The Korea Economic Research Institute (KERI) under the Federation of Korean Industries (FKI) has expressed opposition to the government’s plan to revise the Enforcement Decree of the Financial Investment Services and Capital Market Act to allow public pension funds, including the National Pension Se
As the trend towards low interest rates continues, the issuance of and investment in high-risk derivatives linked securities (DLS) and equity linked securities (ELS) has been growing rapidly.The balance of DLS and ELS came to 117.40 trillion won (US$97.83 billion) as of July this year, up 90.50 tril
An increasing number of credit card issuers are entering the overseas remittance service market as part of their efforts to grab new business opportunities.KB Kookmin Card Co. selected a software developer in August to establish foreign remittance service channels. The firm will start offering the o
The Korean aviation industry is still in a slump. Aviation companies are expected to announce a drop in earnings on year in the third quarter, peak season for them, as they did in the second quarter.Korean Air is expected to post 35.8 billion won in operating income and 3,477 billion won in sales in
Financial Services Commission (FSC) Chairman Eun Sung-soo announced plans on Sept. 18 to set up 300 billion won (US$251.78 million) worth of private fintech investment funds by the end of this year.At a conference on scaling-up of fintech companies held at the D.Camp in Gangnam, Seoul, Eun said, “We
All listed stocks and bonds in South Korea have begun to be issued and registered electronically as the country’s stock exchange officially went paperless starting Sept. 16.The Financial Services Commission (FSC), Ministry of Justice (MOJ) and Korea Securities Depository (KSD) jointly held a ceremon