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FSC vows to beef up risk assessment for financial firms

Financial Services Commission Chairman Eun Sung-soo (FSC)
Financial Services Commission Chairman Eun Sung-soo (FSC)

Eun Seong-soo, chairman of the Financial Services Commission, said Wednesday that the financial regulator will come up with measures to monitor risks of financial conglomerates in a comprehensive manner.

“The FSC will keep trying to establish sophisticated risk assessment rules for financial conglomerates, which will not overlap with the existing regulations in the financial sector,” said the FSC chairman in a meeting jointly organized by financial think tanks Korea Institute of Finance and Korea Capital Market Institute on the day in Seoul.

“The FSC will also gauge non-financial risks such as ownership structure through the measures,” he added.

The establishment of the financial risk assessment tools is one of the Moon Jae-in administration’s top priorities. Since July 2018, non-regulatory rules have been tested in the field, and they are currently undergoing legislative processes.

Companies subject to the rules in the making are those that operate businesses in at least two financial segments, including loans, insurance and investments.Among the companies are financial units run by Samsung Group, Hanwha Group, Mirae Asset, Kyobo Group, Hyundai Motor Group and DB Group. Financial holding companies are exempt from the rules.

By Kim Young-won  (