To Better Reflect Today’s Trends
The Financial Services Commission (FSC) has decided to improve regulations related to industrial-financial capital separation. The purpose is to better reflect today’s trends such as digital finance and big blur while maintaining the framework of the scheme introduced 40 years ago for financial stability and prevention of economic power concentration.
The commission is planning to increase the numbers of explicit and implicit permissions together. Implicit permissions are likely to be expanded as to subsidiary-related investment, and explicit permissions are expected to increase as to related matters.
At the same time, more implicit permissions are expected to be given in every sector with some exceptions such as product manufacturing and production. When it comes to non-financial risks that may follow, total risk limits are expected to be set, such as maximum limits on investments in subsidiaries.
The commission is planning to collect opinions from interested parties before deliberation scheduled for early next year.