South Korean financial sector regulatory reforms

South Korean financial regulators are implementing various reforms to improve consumer protection and institutional accountability. The Financial Supervisory Service (FSS) has moved to reform securities trading fees, addressing discrepancies where accounts opened at physical branches were charged significantly higher rates than online accounts. New regulations will require firms to clearly explain fee differences and allow customers to choose between managed and non-managed account types.

Concurrently, the Financial Services Commission (FSC) is introducing a new evaluation system for inclusive finance, assessing 17 domestic banks on categories such as governance, fund supply, and social consideration. This follows a period of significant disciplinary actions within the banking sector, where major institutions recorded over 1,700 cases involving credit business negligence, embezzlement, and mismanagement. Additionally, the FSC is reforming the management of delinquent debts, establishing new principles for the statute of limitations and the sequential incineration of long-term delinquent claims.