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6 financial groups to make public governance structures on websites

All News 12:00 September 16, 2020

SEOUL, Sept. 16 (Yonhap) -- Six financial groups in South Korea plan to make public their governance structures, financial health and other details on their websites later this month, the financial regulator said Wednesday.

The integrated regulatory filing is meant to provide a clear picture to financial consumers on the financial group's risk factors, according the Financial Services Commission (FSC).

The move could also help "improve the financial groups' risk management capabilities through market discipline," the commission said.

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The six business groups are Kyobo Group; Mirae Asset Financial Group; DB Group; financial affiliates of Hanwha Group; financial affiliates of Hyundai Motor Group; and financial affiliates of Samsung Group.

The integrated regulatory filing includes governance structures, financial health, risk management systems and inter-affiliate transactions of the financial groups.

The six business groups can carry out regular stress tests to assess their capabilities in dealing with a crisis, the commission said in May.

In April, the International Monetary Fund (IMF) said that South Korea's overall financial system appears resilient, but it warned of growing vulnerabilities.

The IMF said most parts of South Korea's banking system appear prudentially strong, but prospects for banks and insurers are dimming due to growth-related uncertainties, low interest rates, potentially disruptive financial technologies and adverse demographic shifts.

"Stress tests suggest that banks and insurers, in aggregate, can weather severe macro financial shocks, although some banks would make use of capital conservation buffers," the IMF said in a report on the Financial Sector Assessment Program posted on its website.


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