“Promoting the ‘Korean wave’ in the financial sector”
The FSC will revise relevant regulations to further encourage domestic financial institutions to pioneer overseas market in search for new growth opportunities.
Newly-established overseas branches will be granted a longer grace period to be exempted from performance evaluation of financial institutions. During the grace period, the branches will be exempted from evaluation of localization as well.
The FSC plans to open a way for domestic banks to acquire overseas financial holding companies. In order to encourage financial holding companies to establish more overseas subsidiaries, the FSC will ease the regulation that requires financial holding companies to hold over a 50% stake in the overseas subsidiary.
Overseas branches of domestic banks, currently allowed to engage only in business approved under Korea’s banking act, will be allowed to expand into a broader range of businesses as long as they are permitted by local laws.