1.

Stability: Establishing a Robust Financial System
 

(1)

Proactive Risk Management: The FSS aims to meticulously manage and proactively address risk factors in the financial market. The FSS will conduct a comprehensive review of real estate financing, project financing, household debt and corporate loans to identify and manage vulnerabilities and refine regulations. In collaboration with the Bank of Korea, the FSS will conduct stress tests to address global economic uncertainties and enhance risk management across the financial system, including foreign exchange risk.
 

(2)

Alleviating Debt Burdens in the Financial Sector: The FSS will establish a management framework for household loans, emphasizing capacity-based assessment and structural improvement to gradually reduce the household debt-to-GDP ratio. The FSS will also closely monitor the debt of corporates, particularly in high-risk industries and large conglomerates, to detect early risks and to guide improvements.
 

(3)

Improvements in Regulatory Frameworks: The FSS plans to strengthen capital and liquidity management systems of banking groups, and improve capital regulations across various financial sectors to enhance loss-absorbing capacities. The FSS will align supervision and regulatory frameworks for banks, small and medium-sized enterprises, insurance and financial investments with global standards with the intent to modernize the system.
 

2.

Trust: Building a Fair Financial Paradigm
 

(4)

Enhancement of Consumer Rights Protection: To protect consumer rights, the FSS will improve customer-centric financial transaction practices and enhance oversight of internal control systems through evaluation of consumer protection practices.
 

(5)

Eradication of Illegal and Unethical Practices: The FSS will strengthen supervisory and inspection systems with the aim to proactively prevent unethical and unfair business practices. The FSS will apply a zero-tolerance policy to major financial misconduct, conduct strict inspections, and enhance the monitoring of unfair transactions.
 

(6)

Improvement in Business Practices and Internal Control Culture: To prevent misselling, the FSS will improve sales practices for high-risk financial products and encourage the establishment of accountability structures by inspecting their operational status. In addition, the FSS will pursue institutional improvements such as enhancement of performance-based compensation systems and organizational culture by strengthening the internal disciplinary standards of financial companies.
 

3.

Mutual Growth: Establishing a Collaborative Growth Ecosystem with Citizens
 

(7)

Mutual Growth of the Capital Market and the National Economy: The FSS will facilitate simultaneous growth of the national economy and financial markets by modernizing the capital markets and restructuring the financial investment industry. Initiatives to be undertaken include encouraging venture capital investments in innovative companies, preparing for new alternative trading platforms, improving systems for the efficient exit of marginal companies, supporting the development of wealth-enhancing products for citizens, and refining regulatory frameworks for systematic risk management.
 

(8)

Strengthened Support for Vulnerable Groups: The FSS will promote the enhancement of financial support, such as expanding loan incentives for low-credit individuals and sole proprietors, to increase funding for vulnerable groups. The agency will exert efforts to promote the disclosure and comparison of loans for sole proprietors and to improve the utilization environment for financial services by expanding infrastructure supporting individuals with disabilities and increasing the use of mobile bank branches.
 

(9)

Elimination of Financial Crimes Affecting Everyday Life: The FSS will implement measures to prevent financial crimes, such as voice phishing, together with continuing collaboration with related agencies. It will provide support to implement revised laws such as the “Telecommunications Fraud Compensation Act.”
 

4.

Future: Building a Responsible Foundation for Innovation
 

(10)

Support for Digital Innovation: The FSS will support the use of pseudonymized information and synthetic data to promote AI application, and assist in establishing an AI platform for small and medium-sized financial institutions. The FSS will also make efforts to legislate for digital assets and promote industry self-regulation to encourage the stable and advanced development of a digital asset regulatory framework.
 

(11)

Establishment of a Safe Digital Environment: The FSS will encourage financial companies to self-monitor and improve their IT environments through newly established guidelines, such as those for IT audits, and to bolster their cyber resilience through regular simulated hacking drills, strengthened IT governance and establishment of a safe, trustworthy digital environment.
 

(12)

Support for Securing Future Growth Potential: The FSS will explore ways for banks to use their resources and infrastructure in non-financial services, continuously revising sector-specific regulations to support innovation. It will make efforts to support sustainable development in the financial industry, including the introduction of measures for the separate management of settlement funds by payment gateway firms and restoring trust in electronic financial services.
 

5.

Renewal: Sustaining Internal Improvements for Exemplary Supervisory Services
 

(13)

Renewal of Supervision Practices: The FSS will refine its processes for inspections, sanctions, terms and conditions of reviews, and dispute resolution. It will also enhance the management of the total volume and progress of inspections to improve the speed and efficiency of inspection operations, and support the efficiency and convenience of financial companies’ operations through automation of systems for procedures such as standardized terms and conditions reviews. To support financial stability and the real economy, the FSS will implement flexible supervisory policies that strengthen the soundness and liquidity capacity of financial companies within global standards.
 

(14)

Enhancing Regulatory Competitiveness Through Digitalization: The FSS will establish a data-centric supervisory system to facilitate the digital transformation of supervisory work. By expanding accessibility to supervisory information and gradually implementing a roadmap for digital transformation, the agency will digitalize financial supervision, and will expand the IT workforce to enhance the expertise and capability of supervisory work.