51st Savings Day celebrated


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51st Savings Day was celebrated on October 28, Tuesday at International Conference Hall, Press Center. More than 250 figures including awardees and employees from financial institutions joined the event to commemorate the meaningful day.

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This year, 91 people received awards for their exemplary saving practices. Mr. Park, the receiver of Peony Medal, overcame poverty inherited by his parents through diligent working and saving as much as he could. Despite that he had to drop out of middle school because he couldn’t afford the tuition fee, he made his own fortune by working harder than others. Managing his foodstuff factory, he has been providing financial support to nursery schools. He has never been lazy helping less fortunate neighbors.

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There were also number of celebrities who were awarded for best saving practices. Actress Kim Hee-ae and comedian Seo Kyeong-suk received presidential commendation. Anchor Baek Seung-joo and model Byeon Jung-soo were awarded prime minister commendation. Baseball player Jang Won-sam and singer Kim Heung-kook received FSC chairman commendation.

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In his congratulatory speech, FSC Chairman Shin Je-Yoon expressed gratitude to all participants for their active participation in the national savings campaign. Furthermore, he mentioned that the development of Korea’s real economy largely owes to the dedicated efforts of the financial industry. He made commitments that the government will find ways to encourage development of various pension savings products, and strengthen financial consumer protection.

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Woori Bank minority shares put up for sale



According to the resolution by the Public Funds Oversight Committee, public announcement on the sale of Woori Bank minority shares will be made from October 27, Monday. Korea Deposit Insurance Corporation‘s 18% stake in Woori Bank will be put up for tender.

To encourage active participation of investors, additional call options of 0.5% per share will be granted to successful bidders. Highest tenderers can exercise their call options anytime within three years since the issuance.

The bid will be closed on November 28 and the final winners will be announced in December.

Third meeting of Committee for Financial Innovation



Committee for Financial Innovation met for its second meeting on Tuesday, October 21 to check the current performances to achieve the Park Geun-hye administration’s ‘Three-year Economic Plan’ and ‘Creative Finance.’

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Centered by FSC Vice Chairman, Jeon Chan-woo, the committee evaluated that the FSC has been successfully laying out foundation to reach the government’s goal. In particular, TCBs gave out 3,200 technology loans, reflecting that the government’s technology finance has already taken deep root in the financial sector.

Growth Ladder Fund provided necessary fund worth 310 billion won to start-up and venture companies. Moreover, the government provided assistance to 63 small-sized firms to be listed in the KONEX market to raise fund.

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Aside from such milestone achievements, there also have been noticeable results by the government to improve bank governance structure, abolish banks’ out-dated financial practices, and streamline inspection and sanction scheme.

The committee will meet again on October 29 to further develop the proposals raised during the second meeting.


Weekly Global Financial News (Oct 13-Oct 19)



Getting used to the ‘new mediocre’, Published: Oct 19


With the Fed set to turn off its money taps at the end of this month, Evaporating inflation and slowing growth have put financial markets into such a spin, something International Monetary Fund chief Christine Lagarde has termed a “new mediocre”.


ECB eyes extra funding for Greek banks as Athens markets plunge, By Reuters, Published: Oct 16


The European Central Bank will loosen its terms for accepting security from Greek banks to allow them to tap more of its funding. This will provide a powerful incentive for Athens to stay under the supervision of international lenders rather than attempt to go it alone.


Fed likely to end bond buying, may signal caution on rate hikes, By Reuters, Published: Oct 16


As mounting signs of weakness overseas have led investors to question the Federal Reserve’s resolve, the central bank is likely to reassure investors that it won’t stand idle if global turbulence threatens the U.S. economy.


BOJ bill-buy offer fails to attract sellers, shows limits of easing strategy, By Reuters, Published: Oct 17


The Bank of Japan’s offer to buy over $28 billion of government bills on Friday fall short of enticing enough sellers, underscoring growing difficulties of force-feeding banks with liquidity.


China to inject $33 billion of three-month loans into banks: sources, By Reuters, Published: Oct 17


China’s central bank is set to inject about 200 billion yuan ($32.66 billion) worth of three-month loans to keep liquidity ample and support the slowing Chinese economy.


Volatile markets deepen anxiety over European bank tests, By Reuters, Published: Oct 17


Violent swings on financial markets have deepened investors; anxiety about What Europe’s review of the health of its banks will reveal from European bank tests.


Argentina says to launch new two-year bond issue up to $1 billion, By Reuters, Published: Oct 17


Argentina will launch a new two-year sovereign bond for up to $1 billion, denominated in U.S. dollars and paid in the local peso currency.


Chairman Shin departs for FATF Plenary Session in Paris



FSC Chairman Shin Je-Yoon will depart for Paris to attend FATF Plenary Meeting from October 18 to 25. As Korea assumed the presidency in February, Chairman Shin will be appointed president from July, 2015. He has been serving as vice-president from July.

The FATF hosts annual plenary meeting with 36 standing member countries, 8 regional anti-money laundering bodies, and 24 international organizations including the IMF. Chairman Shin will start his duties as FATF vice president by attending all meetings including steering committee meeting on the 19th, working group session on the 20th and 21th, and plenary meeting from October 22 to 24.

Korea’s great responsibilities in the FATF reflect Korea’s high international status as a rule setter in the fields of anti-money laundering and counter terrorist financing.

FSC’s achievements and performances in 2014


The FSC Chairman Shin Je-Yoon made a briefing to National Policy Committee of the National Assembly about the FSC’s achievements and performances this year.


Facilitation of Technology Finance



Technology Database(TDB) was established with participation of 32 public and private entities. TDB provides 9.6 million cases of technology information to 23 TCBs.


TCBs provided 1.8 trillion won worth of loans based on technology assessment results as of the end of August.


Development of Venture Capital Market


(Growth Ladder Fund)

The FSC launched ‘Growth Ladder Fund’, a fund specialized in providing business fund for each development stage for venture companies and SMEs. Total 2.5 trillion won worth of subsidiary funds were raised as of the end of September. Growth Ladder Fund invested 310.1 billion won in 64 start-up stage firms as of the end of September.


KONEX grew three folds in volume since the launch in July 2013. 61 companies are listed and total market value accounts for 1,315.4 billion won as of October. 4 KONEX-listed companies were re-listed in the Kosdaq market.


Improvement of Household Debt Structure


 The volume of Korea’s household debt amounted at 1,040 trillion won as of the end of June. However, since the announcement of the government’s plan to improve household debt structure in June 2011 and February 2012, the pace of household debt increase has slowed and the debt structure has improved*. Experts evaluate that the risk of household debt problem to pose entire financial system failure has significantly diminished.

*Household debt increase rate: (2011)8.7%→(2012)5.2%→(2013)6.0%

*Fixed rate non-amortized loan/bank housing mortgage loan: (end-2010)0.5/6.4→(end June, 2014)17.9/21.6


Improvement of Financial Regulatory System


The FSC streamlined regulatory approval process for financial investment business and reduced regulatory burden related with financial institutions’ business operations. Moreover, outdated and unrealistic regulations were abolished to create better business environment for financial firms. The FSC also improved procedures for inspection and sanction on financial companies to relieve their burdens.


Privatization of Woori Financial


In accordance to the government’s ‘Plan to Privatize Woori Financial Group’ its provincial banks(Kyongnam and Kwangju) and 6 securities companies were sold. The government announced the third phase plan for Woori privatization in June, 2014 which is to sell Woori Bank’s stakes on a two-track basis. 30% controlling stake and 27% minority shares will be sold separately to encourage active participation.


Eradication of Unfair Transaction

불공정거래The FSC established Capital Market Investigation Unit in September, 2013 in a bid to eradicate unfair capital market transactions. As of the end of August, 2014 26 cases of serious illegal transaction acts have been detected and reported to the prosecution. Through close coordination with the FSS and the investigative authorities, the FSC greatly reduced the number of unresolved cases related to market violation*.

*Cases pending for investigation: (end-2012)75→(July 2014)46

*Cases pending for trial: (end-2012)141→(July 2014)98


Improvement of Unreasonable Financial Practices금융관행

Since the launch of Financial Consumer Protection Bureau in August, 2013 the FSC has been abolished or improved unreasonable financial practices causing inconvenience to financial consumers. As of the end of September, 2014 65 unreasonable financial practices have been improved.


Simplication of Online Transaction System


The FSC abolished the requirement to use certified key when making online credit card payments exceeding 300 thousand won. Since September, the FSC has been encouraging credit card companies and payment gateway companies to facilitate non-Active X payment.






Government to achieve its technology finance goal by the end of the year


Technology Credit Bureaus(TCB) provided total 3,187 loans based on technology assessment results which amounts at 1.8 trillion won as of the end of September, 2014. It is expected to achieve the initial goal of 7,500 loans at current pace by the end of the year.

< Total number & amount of technology credit loan>


Amount of technology credit loan provided by banks account for 40% of the total, which reflects increasing number of banks are volunteerly giving out loans based on technology assessment results.


 < Number & amount of technology credit loan by banks (end-Sep) >2

Loans provided by IBK accounts for 1/3 of the total leading the movement to improve financing structure for SMEs.