Financial watchdog urges foreign financial firms to manage risks preemptively

Financial Supervisory Service (FSS) Governor Jeong Eun-bo, fifth from the left, hosts a meeting with CEOs representing 13 global financial companies' operations in Korea, at the Millennium Seoul Hilton Hotel, Friday. Korea Times photo by Anna J. Park

Korea's FSS pledges to make financial regulations more predictable to enable fair competition

By Anna J. Park

Financial Supervisory Service (FSS) Governor Jeong Eun-bo said Friday that foreign financial companies operating here should fully prepare for potential internal and external risk factors amid the growing uncertainties in the global economy.

He also said that the financial watchdog will put greater efforts into making regulations more predictable, in order to provide a level playing field for all market players.

The comments came from this year's "FSS SPEAKS 2022," the financial watchdog's annual forum hosted for foreign financial companies, under the banner of "Post Corona, Transformation and Financial Stability," at the Millennium Hilton Seoul on Friday morning.

Financial Supervisory Service (FSS) Governor Jeong Eun-bo speaks during a keynote speech at the "2022 FSS SPEAKS" forum held at the Millennium Seoul Hilton Hotel, Friday. Courtesy of the FSS

"The top priority of the financial authority for this year will be close consultation and communication with the financial market to preemptively manage risks," Jeong said during the speech.

"First of all, financial companies themselves should thoroughly manage risk factors and fully prepare capital reserves in case of any potential losses, so that they can aptly respond to any internal or external shocks," Jeong stressed, adding that the FSS will also strengthen its supervisory role in monitoring the market to prevent financial incidents.

The FSS head also urged foreign companies to heighten their efforts in the realm of consumer protection throughout all processes of their financial business in Korea, saying that the financial sector's innovative growth needs to be balanced with enhanced consumer protections.

Jeong also vowed to come up with a comprehensive set of regulations that fit global standards, to create a level playing field where traditional financial companies ― both local and global ― can compete fairly with big-tech firms and new business operators.

Financial Supervisory Service (FSS) Governor Jeong Eun-bo, fifth from the right in the first row, stands with CEOs representing 13 global financial companies' operations in Korea at the Millennium Seoul Hilton Hotel, Friday. Courtesy of FSS

On the sidelines of the forum, which over 230 guests from the country's major financial institutions and companies attended, the FSS chief also held a separate meeting with the CEOs of 13 global financial companies regarding their operations in Korea on Friday.

The CEOs of JPMorgan Chase, HSBC, Deutsche Bank, BNP Paribas, ING, Goldman Sachs and Fidelity Asset Management, among other firms, attended the meeting to share their views on operating their businesses in the Korean financial market.

During the meeting, Jeong vowed to increase the financial authority's predictability in implementing laws and regulations, which is considered an important point for Korea to grow into a global financial hub.

The chief also pledged to enhance communication with foreign financial companies, while also facilitating the financial sector's digital transformation and ESG-orientated investment infrastructure.

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