Choi Jong-ku, chairman of the Financial Services Commission (FSC), announced on Dec. 19 that the government will provide 15 trillion won (US$13.32 billion) in financial support to auto parts producers and small and mid-sized shipbuilders to promote the growth of key industries next year, and will give preliminary approval to a third Internet-only bank in May next year.
During a year-end seminar held at the K-Twin Towers in Seoul, Choi said, “We will help car component companies and small and mid-sized shipbuilding companies address their financial problems in order to improve the competitiveness of key industries. We will come up with detailed plans to quickly operate 15 trillion won (US$13.32 billion) of financial support programs to accelerate business reshuffle and environment and safety investment.” The financial regulator is planning to draw up detailed support plans by the end of the year to operate 10 trillion won (US$8.88 billion) worth of industrial structure advance support programs and 5 trillion won (US$4.44 billion) worth of environment and safety investment support programs on site as soon as possible.
He stressed the need to support the shipbuilding and auto industries as the shipbuilding industry has the optimum level of production capacity due to restructuring and the auto industry needs support of new technologies, such as green car and smart car, though the complete vehicle market is slightly sluggish.
The FSC will also grant preliminary approval to an additional Internet-only bank in May next year. Choi said, “We will set standards of Internet-only bank authorization as soon as possible and receive applications from companies to set up an Internet-only bank in March and give preliminary approval in May next year.” The FSC is planning to rapidly modify the subordinate rules of the Finance Innovation Support Law related to fintech companies and establish a continuous communication channel with the market.
In addition, it will introduce the “batch collateral system” that can group personal estate, bond and intellectual property right in a lump as security in a bid to activate funding to new industries and innovative firms. The FSC is also planning to expand funding through the capital market, including small amount of public offering, crowdfunding and investment firms specialized in unlisted companies. To this end, it will push ahead with necessary legislation like the revision of the capital market act which is being debated in the National Assembly..