South Korea's FSC greenlights financial recovery strategies

The resolution plans are composed by the Korea Deposit Insurance Corporation.

South Korea’s Financial Services Commission (FSC) said that it approved the recovery plans prepared by D-SIFIs (2024) and their resolution plans composed by the Korea Deposit Insurance Corporation (KDIC) as recommended by the Financial Stability Board (FSB).

The FSC found that the recovery and resolution plans for the 10 D-SIFIs selected for 2024—Shinhan, KB, KEB Hana, Woori, and NongHyup financial holding companies and their banks—mostly meet international standards and the requirements of the Act on the Structural Improvement of the Financial Industry. 

Areas needing improvement and obstacles in the resolution process have been communicated to both KDIC and the SIFIs.

Compared to the previous year, the newly approved plans include tools and mechanisms that enable large financial companies to better prepare for and respond to risk situations. 

They also allow the resolution authority to carry out proceedings more swiftly, thereby ensuring greater stability in the financial system.

These plans are reviewed and approved annually, with the authorities planning to evaluate and approve the recovery and resolution plans for D-SIFIs selected for 2025 in the future.