FSS to inspect Yuanta, Hyundai Motor Securities, Hanwha Asset and NH-Amundi Asset
The headquarters of the Financial Supervisory Service (FSS) in Yeouido, Seoul / YonhapBy Anna J. Park The Financial Supervisory Service (FSS) has selected Yuanta Securities and Hyundai Motor Securities as brokerages for regular inspection this year. The FSS conducts inspections of financial firms once every several years, looking into overall business operations, structures and internal systemic issues.It is expected that this year's inspections of the two medium-sized brokerage firms will assess their capital soundness, particularly their real estate project financing (PF). With many local securities companies holding varied exposures to the real estate PF market, the financial authority aims to closely examine the risk factors and liquidity reserves of the firms. The average delinquency rate in real estate PF loans by securities companies rose to 8.2 percent, at the end of last September, which is more than double from the end of 2021. It will be the first regular inspection for Yuanta since 2014 and the first for Hyundai Motor Securities since 2011. Local asset managers, Hanwha As
