Who is Frank?



I was born in Korea on August 19 which also is the date when the FSC’s official English blog was launched. I am the type with a very strong curiosity. Among other things, I am deeply into finance and economy. I love reading stories and books about what’s going on in the global and domestic financial industry. I like to tell and share with other people what I learnt and felt after reading the materials. I am also a frequent writer. I regularly post stories about the current financial and economic issues on my blog, facebook, and twitter. Please take your time and visit my facebook and twitter pages for more interesting stuff to read! Your comments excite me. I am always more than ready to share opinions with you.



*Frank is an imaginary figure who represents ‘Frank’s Super Communication’. The blog was named after the acronym of the Financial Services Commission(FSC).

Obvious but unpracticed things related to credit card usage


What you should be aware of 

  1. Credit or debit card companies are liable for most of illegal payments made using lost or stolen card

“Where a credit card holder or a debit card holder reports to a credit card company on loss or theft of the card, from that time, the credit card company shall be liable to the credit card holder or the debit card holder for use of the credit card or the debit card.” (Article 16-1, Specialized Credit Finance Business Act)

However, credit and debit card companies are responsible for the reimbursement only if the credit or debit card holder is not liable for loss or leak of pin number.

  1. Card holders may be partially responsible for the loss of their card under certain cases

If a stolen card does not have the holder’s signature on the back, the holder might only get a small amount of repayment from the card company.

Card companies are not obliged for reimbursement when the holder lent or handed over his or her card to someone else and payments are made using that card by a third party.

  1. Credit card member stores are liable for reimbursement in case they didn’t ask for customer’s signature when making credit card payments worth KRW 50,000 or more.


What you should do

  1. Report immediately to respective card companies in case of loss of theft of card.
  2. Be sure to write your signature on the back of your cards and put the same signature when making card payments.
  3. Pin numbers should be kept completley secret and should be something that no one else can guess.Do not lend your cards even to your closest family.

Weekly Global Financial News Dec1-Dec7


Working oil pumps

Assessing the fallout from the fall in oil prices, Published: Dec 5


With crude oil prices hitting five-year lows, investors are scrambling to speculate on how the decline in oil prices has impacted or will impact. However, whether the drop will have an effect on other sectors is yet unclear. 

China to deepen economic reforms in 2015: Xinhua, By Reuters, Published: Dec 5


China will deepen reforms in the world’s second-largest economy in 2015 as it tries to remake its growth model into one that is greener and more sustainable. 

Bullish U.S. jobs report keeps Fed on track for mid-2015 rate hike, By Reuters, Published: Dec 5


The employment report provided that latest sign that a strengthening job market is starting to spur faster wage growth, a key factor that could draw the Federal Reserve closer to raising interest rates. 

ECB Chief Goes Stumping for Stimulus Votes, a Trillion Euros on the Table, By Bloomberg, Published: Dec 5


With inflation already at a five-year low, Draghi strengthened his language on possible stimulus by saying that policy makers “intend” rather than “expect” the ECB’s balance sheet to grow toward its levels of early 2012. 

Gold Futures Drop as Payrolls in U.S. Surge by Most Since 2012, By Bloomberg, Published: Dec 6


Gold slumped after the U.S. added the largest number of jobs in almost three years, fueling concern that the Federal Reserve will move closer to raising interest rates.

International lending to China soars in 2014: BIS, By Reuters, Published: Dec 7


China has become the largest emerging market destination for international bank lending, accounting for more than a quarter of cross-border claims on all emerging market economies. Concerns are mounting of a credit bubble developing in China.

Public fund Recoupment


Recovery of Public Fund I* 

During the period from November 1997 to September 2014, the government provided public fund worth total KRW 168.7trillion from which KRW 107.5trn (63.7%) have been recouped so far.

Recovery rate(%): 57.0(end-2009), 59.9(end-2010), 60.9(end-2011), 62.5(end-2012), 63.4(end-2013), 63.7(Sep. 2014)


Recovery of Public Fund II**

Total KRW 6.1693trillion was provided during the period from June 2009 to September 2014. 88.2% or KRW 5.4436trn has been recouped so far.

*Public fund raised during the 1997 Asian economic crisis to finance liquidation of insolvent financial institutions.

**Public fund created in response to the 2008 global financial crisis to resolve financial market instability.

5.94% of the bids made for Woori Bank minority shares auctioned off


The Korea Depository Insurance Corporation(KDIC) on December 4 auctioned off 5.94% of the bids made for Woori Bank minority shares o/ut of the total 23.76%. As announced earlier, the successful bidders wil be granted call options accounting for 50% of the winning bid.


Please read the press release for detailes -> http://www.fsc.go.kr/downManager?bbsid=BBS0048&no=94038

Bail Out


Typically, when a business collapses, the government or other businesses and financial institutions offer money to help them recover. Especially if the business has a lot of people and their interests involved, the government provides some kind of a financial aid, either to be reimbursed or not reimbursed. Such action is called “bail out”. One of the most well-known examples of bail out would be the one during the US financial crisis in 2008. When the banks and several companies collapsed and went bankrupt, the government provided nearly USD700 billion to help them recover. On top of saving these institutions, there were far too many people affected by the crisis that governmental aid was necessary. 


Bail out is not only restricted to businesses and corporations. It can also be used when a country is in a severe financial crisis. When a country faces a severe debt crisis and is not able to pay back, it may get some help from other nations or international financial organizations like the International Monetary Fund (IMF). When bail out begins, money is either lent or given for the country or company to use to get out of the crisis. After sometime, when it recovers to a certain degree in which its financial providers feel that it could become more independent, especially in terms of employment and the overall management, it is then left to operate on its own.  

The Greek debt crisis has been an ongoing issue for some time. As a member of the Euro Zone, European Union members came together to offer bail out. As Greece faced financial crisis, the whole EU was affected in terms of currency rate. Its currency value depreciated, although the crisis was not the only contribution to such happening.  

As there is a vast network of intertwined interests, bail out not only rescues a business or a country alone, but also may reduce the impact received by other institutions or countries. Although not always successful, it can make a business or a country profitable again. From the crisis to its recovery, the bailed out member may contribute to the economy even more actively.