Financial Services Commission: ”Active screening of applications from regional banks to convert to city banks”

The Financial Services Commission announced on the 10th that it will encourage new players to enter the banking sector. The commission also announced the "Yoon Seok-yeol government's financial sector achievements and future plans" on the same day.
"We will actively review applications from other regional banks when they apply for conversion (to promote competition for banking rights) and we will ensure that the procedures for new approvals for internet-only banks are smooth," he said.
The FSC also approved Daegu Bank's conversion into a city bank in May, marking the first city bank in 32 years.
The Financial Services Commission will release a proposal to improve the real estate fund-raising system in the second half of the year.
The ministry said it is currently preparing the plan with relevant agencies (such as the Ministry of Finance and the Ministry of Land, Infrastructure and Transport) and plans to announce it in the second half of the year. The proposed improvements include incentivizing an increase in the capital adequacy ratio of PF projects and strengthening the evaluation of PF loan business feasibility.
The Financial Services Commission also announced that it will fully implement the revised early redemption fee system in January next year, but will encourage banks that are able to do so to implement it before then.
As a result of the law, it has become mandatory for early redemption fees to reflect only actual costs, but the results of the banking rights simulation show that the fee burden is expected to be reduced by about half.
Regarding household debt management, the government plans to "monitor the increasing trend and state of affairs and implement appropriate management measures as necessary according to the circumstances."
These include imposing a mandatory reserve requirement, adjusting the compensation ratio for non-life insurance, and strengthening income screening. The non-salary and non-life insurance reform plan is scheduled to be enacted next month by the Special Committee on Medical Reform together with the Ministry of Health and Welfare.
Based on the discussions held at the Insurance Reform Council, the committee will also announce insurance reform plans for each of the major fields, such as non-life, automobile, and pension, by January next year.
These include the announcement of a "one-stop loan transfer service," "expansion of policy-based public finance to the highest level ever (10 trillion won per year)," and "the crackdown on illegal consumer finance and the improvement of the lending industry system."
Through the loan restructuring service, about 290,000 lenders have reduced their interest rates by 1.76 million won per person per year.
"The government quickly stabilized the financial markets through bold market stabilization measures and the promotion of the highest level of public finance in history, including interest refunds for small businesses (1.8 trillion won)."