On 24 February 2020, SK FSC discussed improvements to supervision.
- SK FSC chairman Eun Sung-soo held a meeting with financial conglomerate CEOs and private sector experts to discuss improving the supervision of financial conglomerates.
Chairman's Remarks
- The supervision of financial conglomerates is an effort to systematically manage group-wide risks of financial companies, widely in use in advanced countries.
- This supervisory framework was first introduced in Korea in 2018 and has been operating for three years since, and the FSC plans to improve three supervisory areas.
- Capital adequacy assessment: combine distinct risk concentration and risk transfer categories into a single comprehensive framework for assessing requirements.
- Disclosure rules: financial conglomerates shall gather required information from subsidiaries and provide group-wide disclosure of information on financial statements, investment structures and risks in an easily understandable format.
- Internal control requirements: financial conglomerates shall organize and operate a control system through which a group-wide consultative body can be introduced.
- To facilitate discussion by compliance officers on group-wide internal control policy.
Timeline
- SK FSC plans to take into consideration the opinions from the meeting for the revision of best practice guidelines, which is expected to be finalized by April, effective May.
