Victims to get back voice phishing funds routed through foreign currency accounts

FSS moves to establish payment suspension, refund rules for foreign currency accounts Regulator eyes applying virtual asset relief framework to foreign exchange 'Relief must extend to gold, gift vouchers and other assets,' experts say Voice phishing victims whose stolen funds were routed into foreign currency accounts will be able to seek compensation as early as next month. Financial authorities are establishing common operational standards for banks covering everything from payment suspension to refund procedures, and have begun overhauling the related IT systems. The regulatory push follows earlier reporting that exposed a blind spot in the current system: some banks cannot immediately freeze foreign currency accounts in their systems, and the absence of clear rules on exchange rate application and conversion fees has blocked victims from recovering their money. According to data the Financial Supervisory Service provided to People Power Party lawmaker Park Sung-hoon of the National Assembly's Political Affairs Committee on Thursday, the FSS plans to establish operational standards for freezing foreign currency accounts and processing refunds in line with an amended Telecommunications Fraud Victim Compensation Act set to take effect next month. The regulator also intends to have banks reflect those standards in their IT systems so they can be applied in actual victim relief cases. Until now, victim relief procedures effectively ground to a halt whenever voice phishing proceeds flowed into a foreign currency account. The FSS confirmed that some banks faced restrictions on freezing such accounts, pointing to gaps in both operational procedures and IT infrastructure. Even when a freeze was successfully imposed, the absence of separate refund standards — including rules on exchange rate application — made it difficult to return the funds to victims. Voice phishing organizations are believed to have exploited these systemic loopholes, using foreign currency accounts as a vehicle to conceal and launder stolen money. Refund standards specific to foreign currency accounts are also expected to be established. The exchange rate has been the single biggest obstacle in the relief process for foreign currency accounts, unlike their won-denominated counterparts. Once stolen funds are converted into dollars or other foreign currencies, fluctuating exchange rates during bond-cancellation proceedings can alter the won-equivalent amount. There have also been no clear rules on which exchange rate to apply, or on who bears the cost of exchange gains, losses and conversion fees — leaving banks unable to convert foreign currency back into won and return it to victims on their own judgment. In response, authorities are reviewing whether to apply the framework being developed for virtual asset victim relief to foreign currency cases as well. The amended Telecommunications Fraud Victim Compensation Act taking effect in October expands the scope of eligible assets from cash to include virtual assets, and regulators believe the standards being crafted for virtual assets could also work for foreign currencies. The FSS explained that both virtual assets and foreign currencies share a key characteristic as "non-won assets" — meaning that determining the amount of damage requires a valuation and conversion process based on market prices or exchange rates. Authorities are also gathering input from the industry. The Korea Federation of Banks has been holding a series of task-force meetings on the issue, and the FSS has convened officials responsible for voice phishing victim relief to hold working-level discussions. "Criminal organizations are increasingly exploiting the gap where tracking and relief procedures break down once stolen funds pass through a foreign currency account, using it as a money-laundering channel," a financial industry official said. "Once a practical framework addressing the unique issues of foreign currency accounts is in place, reflecting it in IT systems should not be a major challenge." Meanwhile, some experts argue the regulatory overhaul should not be limited to foreign currency accounts. Voice phishing organizations are diversifying the means they use to spirit away stolen funds — beyond foreign currencies to gold, gift vouchers and other instruments. "Criminal organizations tend to spread funds across multiple channels rather than concentrating on a single method," said Jeong Un-yeong, chair of the Finance and Happiness Network. "Any asset that can be converted into won should be included in the scope of victim relief, so that stolen funds can be traced all the way to the end." If you have been exposed to illegal private lending, you can report it to the Financial Supervisory Service (☎1332) for assistance. Those struggling with excessive debt can seek help from the Korea Inclusive Finance Agency (☎1397) or the Credit Counseling and Recovery Service (☎1600-5500). Loan contracts with an annual interest rate exceeding 60% are void in both principal and interest.

Sept. 17, 2026

Banksalad launches 'Gene Test 2.0' with 190 analysis categories

Users can check where they rank among top genetic factors in Korea's genome database Banksalad announced Thursday the launch of "Gene Test 2.0," an expanded genetic testing service covering 190 analysis categories. The updated service allows users to compare their genetic data against Korea's full genomic database and identify factors in which they rank among the top tier. At 190 categories, the service offers the most analysis items of any direct-to-consumer genetic testing service in South Korea. The overhaul focuses on areas closely tied to everyday health management. Users can check health indicators such as blood pressure and cholesterol levels, skin-related factors including wrinkles, age spots and skin moisture content, and personal traits such as lactose intolerance, nut sensitivity, teeth grinding and heart rate. Customers who have recently taken a genetic test will not need a new kit, sample recollection or return shipment. They can simply apply through the Banksalad app to receive updated results. Those tested before July 2025, however, will need to submit a new sample. Banksalad is also running a promotional discount to mark the relaunch. Banksalad first introduced its genetic testing service in the second half of 2021, following its loan comparison service. It has since revamped its app with a focus on reducing interest costs for users, building on the rollout of an AI-powered interest rate reduction request service.

Sept. 17, 2026

Gov't paid nearly W1.8tr in loan guarantees for struggling small businesses

Repayment capacity of small business owners takes direct hit Default rates on low-interest refinancing, COVID-era guarantee programs surge Korea Credit Guarantee Fund's subrogation payments reach 1.78 trillion won as of end-July Multiple-debt burden worsens as high-rate environment persists As a so-called "K-shaped polarization" — in which a semiconductor boom coexists with sluggish domestic demand — tightens its grip on the South Korean economy, the quality of policy-backed loan guarantees extended to small business owners and self-employed workers is deteriorating sharply. Subrogation payments made by the Korea Credit Guarantee Fund on behalf of small business owners have reached nearly 1.8 trillion won ($1.32 billion). Experts say the government should shift away from blanket support that amplifies financial risk and instead focus on sorting viable businesses from those with little chance of recovery, guiding the latter toward a soft exit. According to data submitted to the office of People Power Party lawmaker Park Sung-hoon of the National Assembly's Political Affairs Committee by the Korea Credit Guarantee Fund, the cumulative default rate on the "small business low-interest refinancing trust guarantee" program — which ran from September 2022 through December 2024 — stood at 26.6 percent as of the end of July this year. The rate was 5.2 percent at the end of 2023, climbed to 12.7 percent by the end of 2024, then surged to 22.1 percent in 2025. The low-interest refinancing trust guarantee program converts high-interest loans — those carrying annual rates of 7 percent or more — held by self-employed individuals and sole proprietors into lower-rate loans. Introduced to support small business owners struggling in the wake of the COVID-19 pandemic, the program stopped accepting new applications in December 2024. Of the total 1.66 trillion won disbursed, the outstanding guarantee balance stood at 1.09 trillion won as of the end of July this year. As defaults have spread, the subrogation payments the fund has made on borrowers' behalf have snowballed. Cumulative subrogation payments under the low-interest refinancing trust guarantee rose from 24.8 billion won in 2023 to 329.5 billion won in 2025, reaching 406.7 billion won as of the end of July this year. The subrogation rate climbed from 2.2 percent in 2023 to 12.2 percent by the end of July. The amount the fund has been unable to recover after exercising its right of recourse grew from 20.4 billion won to 235.6 billion won over the same period. The default rate on the "small business financial support trust guarantee" program — which ran from May 2020 through January 2021 during the height of the COVID-19 outbreak — is also rising. Its cumulative default rate climbed from 5.2 percent in 2022 to 18.2 percent in 2024, reaching 19.5 percent as of the end of July this year. The program disbursed a total of 7.43 trillion won; the current outstanding guarantee balance stands at 282.8 billion won. Cumulative subrogation payments under that program were 183.1 billion won in 2022, 690.5 billion won in 2023, 1.16 trillion won in 2024, and 1.38 trillion won as of the end of July. Unrecovered amounts approached 613.4 billion won. Combined subrogation payments made by the Korea Credit Guarantee Fund under both the low-interest refinancing trust guarantee and the small business financial support trust guarantee programs totaled 1.78 trillion won as of the end of July this year. The period during which policy guarantee defaults accelerated coincides with a sharp deterioration in key indicators of financial risk among self-employed workers. According to the Bank of Korea, the share of "vulnerable borrowers" — defined as multiple-debt holders who are also low-income, low-credit, or self-employed — rose from 10.5 percent at the end of 2022 to 12.8 percent in the first quarter of this year. Over the same period, the delinquency rate among this group jumped from 5.91 percent to 12.68 percent, far exceeding the overall self-employed delinquency rate of 2.04 percent. Analysts say a prolonged high-interest-rate environment following the COVID-19 pandemic, combined with a structural shift toward contactless consumption, has left a growing number of small business owners unable to adapt. Particularly this year, the acceleration of K-shaped polarization — in which gains from the semiconductor boom have failed to filter through to domestic consumption — has deepened the financial strain on self-employed workers. According to the Bank of Korea, closure rates among self-employed workers in manufacturing and construction remained largely unchanged, moving from 7.0 percent and 9.5 percent respectively in 2021 to 7.0 percent and 9.4 percent in 2024. By contrast, closure rates in accommodation and food services rose from 16.3 percent to 18.2 percent, while those in wholesale and retail trade climbed from 15.4 percent to 17.5 percent. The Bank of Korea warned that delinquency rates "could rise again or remain elevated for an extended period due to delayed improvements in repayment capacity and the lingering effects of higher interest rates." Voices in the financial sector have consistently called on the government to move away from broad-based "dragnet" support through policy guarantees and instead distinguish between businesses with genuine recovery potential and those without. Japan, for instance, prioritizes helping low-viability self-employed workers wind down smoothly or resolve their guarantee obligations rather than extending further financial support. France offers an unemployment benefit system for the self-employed, while Spain has strengthened their integration into the social security system — both approaches aimed at building safety nets for those who exit economic activity. Similar calls have emerged in political circles, with some urging the government to focus not on debt forgiveness but on tightening the screening and recovery processes for existing policy guarantees. "If the government takes on the debt through policy guarantees, then pays it off when defaults occur, and now forgives the principal as well, the bill ultimately falls on the public," Park said. "Rather than populist debt relief, the government must properly assess repayment capacity and fix the way policy guarantee defaults are managed and recovered."

Sept. 17, 2026

Woori Financial Group surpasses annual productive-finance target through August

Chairman Lim Jong-ryong calls for funds to reach customers 'on time' Woori Financial Group has surpassed its annual productive-finance supply target, driven by Chairman Lim Jong-ryong's "Future Co-growth Project" and an aggressive push to meet corporate funding demand. The group also completed roughly 2.2 trillion won ($1.61 billion) in inclusive finance supply through retail financial products. According to Woori Financial Group, Lim chaired the September Advanced Strategic Industry Finance Council on Wednesday and stressed that the group must now broaden its support to regional businesses and small and medium-sized enterprises with proven technological capabilities, building on its productive-finance track record. He went on to say that inclusive finance efforts should also be pursued with sincerity and urgency, so that customers facing economic hardship can receive the funds they need on time. Through August, Woori Financial Group channeled a total of 25.3 trillion won into productive finance — comprising 1.5 trillion won in investment and 23.8 trillion won in loans. The figure represents 35.7 percent of the five-year target under the "Future Co-growth Project" productive-finance pillar and 116.3 percent of this year's annual goal. On the investment side, the group has been expanding funding tailored to each stage of corporate growth through participation in the National Growth Fund and the supply of venture capital. A 220 billion won CJ 4DFlex Project Fund sourced by Woori Bank received final approval from the National Growth Fund's investment management review committee last month — the first approval secured through the Financial Services Commission's growth-company discovery consultative body. The National Growth Fund is set to contribute 50 billion won and Woori Financial Group to participate with 65 billion won in October, with fund formation and deployment imminent. Woori Investment Securities supplied 365.1 billion won in venture capital through August, exceeding its original target by 180 percent, and has been expanding funding for advanced strategic industries and innovative growth companies, contributing to the revitalization of private venture capital and broader productive-finance investment. Of 75 AI transformation tasks tied to productive finance, Woori Financial Group has completed development on 13 — covering credit screening, risk management and corporate sales support — as it pursues operational innovation aligned with the productive-finance overhaul and works toward more systematic and efficient financial support. Inclusive finance disbursements through August totaled 2.2 trillion won, comprising 950 billion won in retail finance, 790 billion won in mid-rate loans and 430 billion won in small-business loans, among other items. Woori Bank's personal credit loan annual 7 percent interest rate cap program provided interest-reduction benefits totaling 3 billion won to about 75,000 customers through the end of August. The "Woori WON Dream Living Expense Loan" — which provides emergency living funds to financially underserved groups including freelancers, homemakers and non-wage workers — disbursed a total of 55.5 billion won to 7,200 people through the end of August. Woori Bank wrote off 42.4 billion won in long-overdue debt in the first half of the year, helping 2,387 people get back on their feet, and plans to write off an additional 120 billion won by the end of September. Woori Card also plans to write off about 120 billion won, bringing the group-wide total to 280 billion won. Woori Miso Microfinance Foundation has also been stepping up retail finance supply and strengthening community outreach, disbursing a total of 10.2 billion won to 1,303 people through August. Financial regulators are preparing liability-exemption measures to encourage productive-finance activity across the financial sector. The industry had previously asked the government to extend the same exemptions applied to the National Growth Fund to other policy funds as well.

Sept. 17, 2026

Usage of small business credit card with up to W10m limit rises 50% in six months

Biz Plus Card usage rises from 114 billion won to 172 billion won Banks expand debt restructuring, guarantees and rate relief for small businesses Small business owners are seeing sales grow, but costs are rising even faster, squeezing profit margins and their ability to repay debt at the same time. Against that backdrop, spending on a credit card designed specifically to fund small business operations has surged — and banks are responding by broadening their support beyond simple lending to include debt restructuring, interest-rate relief, guarantees and management consulting. As of the end of August, the Industrial Bank of Korea's small-business credit card, the Biz Plus Card, had been issued 20,867 times and had accumulated total spending of 366.7 billion won ($268 million), according to financial industry data released Thursday. The pace of spending growth was particularly striking. Spending totaled 114 billion won in the second half of last year, then climbed to 172 billion won in the first half of this year — a gain of 58 billion won, or about 51 percent. An additional 80.7 billion won was spent in July and August alone, bringing cumulative spending for the first eight months of this year to 252.7 billion won. That eight-month figure is roughly 2.2 times the total recorded in the six months of last year's second half. The Biz Plus Card is a credit card for small business owners operated jointly by Industrial Bank of Korea, the Ministry of SMEs and Startups and the Korea Federation of Credit Guarantee Foundations. Backed by guarantees from regional credit guarantee foundations, it allows spending of up to 10 million won, and sole proprietors are exempt from the annual fee. It also offers interest-free installment plans of up to six months and cashback benefits. Because the card is widely used to cover operating costs, the rise in spending signals that small businesses continue to face persistent funding needs. The operating environment for small businesses is indeed growing more difficult. According to Korea Credit Data, average sales per small business establishment came to 47.11 million won in the second quarter of this year, up 4.53 percent from a year earlier, but average expenses rose faster, climbing 5.83 percent to 35.22 million won. With costs outpacing revenue, the average profit margin fell to 25.2 percent, down 0.92 percentage points from a year ago. Overdue loans held by sole proprietors have also grown. Delinquent loan balances for sole proprietors reached 15.2 trillion won in the second quarter, up 1.8 trillion won from 13.4 trillion won in the same period last year. Total outstanding loans to sole proprietors also rose over the same period, from 723.5 trillion won to 735.8 trillion won. With both operating costs and debt burdens mounting simultaneously, banks are diversifying the ways they support small business owners. Woori Bank is helping sole proprietors who are planning to close or have already shut down their businesses convert existing business loans into household loans repayable over a longer period. For small business owners facing temporary cash shortages, the bank offers maturity extensions, loan rollovers, contract renewals and interest-rate reductions through its Soho 119 Plus program. It also runs a separate lending program that provides additional business funding to sole proprietors who have faithfully carried out debt restructuring plans. Shinhan Bank operates a program that refunds up to 4 percentage points of interest on loans to low-credit sole proprietors carrying rates above 5 percent annually, with the refunded amount automatically applied to reduce the principal. Hana Bank is providing up to 20 million won in funding through a 300 billion won small-business savings account program run jointly with the Seoul Metropolitan Government and the Seoul Credit Guarantee Foundation, and is covering 50 percent of new loan guarantee fees. In Incheon, the bank has expanded its guarantee program to include small business owners with mid-to-low credit ratings, and is also supporting the adoption of digital equipment such as AI-enabled closed-circuit television cameras, kiosks and QR-code ordering systems. KB Kookmin Bank runs a non-face-to-face guaranteed loan service through the Korea Federation of Credit Guarantee Foundations' Guarantee Dream app, allowing customers to apply for guarantees, submit documents and complete loan disbursements entirely online. Through Oct. 30, customers who take out a loan via the service will receive a subsidy covering 50 percent of their guarantee fee, up to 300,000 won. Industrial Bank of Korea is also expanding small business owners' access to financing by offering a non-face-to-face working-capital loan backed by Korea Credit Guarantee Fund guarantees, alongside the Biz Plus Card. "As the high-interest-rate environment persists, the financial burden on low-credit and vulnerable borrowers has been accumulating," a banking industry official said. "The financial sector is expanding its support beyond simply supplying funds, moving toward improving financial access for these borrowers and helping them maintain a stable financial life."

Sept. 17, 2026

FSS flags rising interest rates as top risk, weighs measures to ease borrowers' burden

Debt restructuring, rate-cut request rights, fixed-rate loan expansion under review Vulnerable borrowers to be identified early; job and welfare linkages to be strengthened The Financial Supervisory Service is treating the sharp rise in interest rates as the primary risk facing financial markets and is reviewing measures to ease the burden on borrowers. The regulator is examining options including debt restructuring, activation of the right to request rate cuts, and expansion of fixed-rate loans, while also planning to strengthen early identification of borrowers at risk of delinquency and support for vulnerable groups seeking financial recovery. Lee Se-hun, senior deputy governor of the Financial Supervisory Service, said at a pre-briefing Thursday ahead of a public reporting event on consumer financial protection held at the FSS headquarters in Yeouido, Seoul, that the regulator views interest rates as "the most immediate risk factor in the current financial market." He added that "as the pace of rate increases is steep, we are paying close attention not only to market stability but also to the growing financial burden on ordinary citizens." Lee said the FSS is "considering measures such as debt restructuring, activation of the right to request rate cuts, and expansion of fixed-rate loans to reduce the interest burden on consumers." The FSS also plans to broaden its support for vulnerable groups beyond simple credit supply to encompass recovery assistance. To reduce the rate at which borrowers who have undergone debt restructuring fall back into delinquency, the regulator will strengthen linkages between financial support and employment and welfare programs. "Support for vulnerable groups must not stop at simple loans or expanded financial access," Lee said. "To reduce re-delinquency after debt restructuring, it is important to link financial assistance with employment and social welfare programs so that people can achieve genuine recovery and restore their repayment capacity." The FSS will also upgrade its system for early detection of at-risk borrowers through information sharing with related agencies. The regulator plans to standardize criteria for identifying borrowers at risk of delinquency and for providing debt restructuring support, and will build an "inclusive finance integrated monitoring system" that consolidates and analyzes credit loan and policy guarantee data for mid- and low-credit borrowers to identify areas of insufficient credit supply. Financial support for vulnerable groups is also being expanded. The supply target for the Saeheuimang Holssi loan program this year is 5.1 trillion won ($3.73 billion), up 20.1 percent from last year. As of July, 3.1 trillion won had already been disbursed. In the secondary financial sector, a living-expense stabilization loan was launched for mid- and low-credit borrowers, and improvements to the interest rate calculation method drove rate reductions of up to 1.24 percentage points. On the faster pace of household lending growth this year compared with last year, the FSS said it does not yet consider the increase excessive. "While household loan growth this year has been faster than last year in some respects, we also need to consider the demand for investment funds driven by the stock market rally in the first half of the year, as well as the base effect from the aggressive household loan management last year," Lee said. "Given our management target of 3 percent growth this year, we do not currently judge the increase to be excessive, but we will closely monitor the situation through December and examine whether any corrective action is needed." The FSS said that while financial soundness and consumer protection may conflict in the short term, consumer trust can ultimately translate into institutional soundness over the long run. "Soundness and consumer protection may be at odds in the short term, but in the long run, the soundness of a financial institution ultimately depends on how solid a customer base it builds and how much trust it earns," Lee said.

Sept. 17, 2026

JB Financial partners with Upstage to develop finance-specific AI agents

Strategic partnership signed covering finance and AI technology; collaboration to include finance-focused AI projects and talent development JB Financial Group announced Thursday it will work with AI company Upstage to develop finance-specific AI agents for use in real-world banking operations. JB Financial signed a strategic partnership with Upstage on Monday covering finance and AI technology and project cooperation. Chairman Kim Ki-hong and Upstage CEO Kim Sung-hoon attended the signing ceremony. The two companies plan to leverage Upstage's proprietary large language model technology to identify AI innovation projects that can be deployed directly in financial settings. Group subsidiaries — Jeonbuk Bank, Gwangju Bank and JB Woori Capital — will participate in the joint development of finance-specific AI agents. Specific areas of cooperation include identifying and applying AI-based financial innovation projects, joint education and personnel exchanges to strengthen finance and AI expertise, developing projects in partnership with local governments and communities, and participating in related consortiums. The two companies also plan to nurture regional talent through a finance-AI convergence education program and collaborate on building a local AI ecosystem. The plan calls for boosting both productivity and customer service competitiveness through AI agents tailored to the operational characteristics of each subsidiary. Earlier, at a group management strategy meeting in August, Chairman Kim directed the CEOs of each subsidiary to personally lead AI transformation efforts, setting a goal of becoming an "AI monetization group" that goes beyond operational efficiency to generate revenue. Upstage is the lead operator of the government's independent AI foundation model project. The company has raised about 730 billion won ($534 million) in cumulative investment, becoming the first domestic AI software company to achieve unicorn status. Its in-house LLM, Solar Pro4, ranks among the most-used Korean-made models on OpenRouter, a global AI model platform. The two companies also plan to explore global business opportunities together, including integrating Upstage's AI solutions into JB Financial's subsidiary infrastructure in Southeast Asia. "Our cooperation with Upstage will raise awareness of AI transformation across the group and serve as an opportunity to identify innovation projects for use in financial operations," Chairman Kim said. "We will lead financial innovation and community development while creating new business opportunities in global markets."

Sept. 17, 2026

Kospi rises at open despite US rate hike

Major indexes including the Kospi were displayed on a screen in the lobby of Shinhan Bank in Jung-gu, Seoul, on Thursday morning, as the Kospi opened higher despite the US Federal Reserve's decision to raise its benchmark interest rate. The won-dollar exchange rate was fluctuating in the 1,370-won range.

Sept. 17, 2026

Won-dollar exchange rate fluctuates in upper 1,370s

The won-dollar exchange rate is displayed in the lobby of Shinhan Bank in Jung-gu, Seoul, on Thursday morning, as the rate fluctuates in the upper 1,370s amid a monetary tightening stance following the US Federal Reserve's benchmark interest rate hike decision.

Sept. 17, 2026

Insurers' solvency ratio dips to 215.2% as stock rally inflates required capital

Post-transitional-measure ratio as of end-June falls 0.8 percentage points Available capital rises 69.1 trillion won, but equity risk charge jumps 35.2 trillion won A buoyant stock market added nearly 70 trillion won ($51.2 billion) to insurers' capital in three months, yet their key solvency indicator — the Korean Insurance Capital Standard, or K-ICS — edged lower, as the same rally that fattened asset values also swelled the capital buffer required against equity risk. The Financial Supervisory Service said Thursday that the industry-wide K-ICS ratio, measured after transitional measures, stood at 215.2% as of end-June, down 0.8 percentage points from 216.0% at end-March. Life insurers posted 206.8%, a drop of 0.7 percentage points, while non-life insurers rose 1.2 percentage points to 230.9%. The K-ICS ratio — available capital divided by required capital — shows whether an insurer can pay claims even after unexpected losses. Eighteen companies are currently operating under optional transitional measures, comprising 12 life insurers and six non-life and reinsurance firms. Available capital, the ratio's numerator, grew 69.1 trillion won, or 22.2%, to 380 trillion won from the previous quarter. The increase was driven largely by net profit of 4.5 trillion won in the second quarter, on top of a 61.2 trillion won rise in accumulated other comprehensive income stemming from higher share prices. Required capital, the denominator, grew even faster. It reached 176.6 trillion won at end-June, up 32.6 trillion won, or 22.6%, with the equity risk charge alone accounting for 35.2 trillion won of that increase. That dynamic explains why the ratio fell even as capital expanded sharply. Among the three largest life insurers, Samsung Life Insurance slipped 1.8 percentage points to 208.2% and Kyobo Life fell 10.6 percentage points to 200.8% (post-transitional measure), while Hanwha Life Insurance climbed 5.9 percentage points to 168.0%. Shinhan Life rose 9.2 percentage points to 210.4%, and KB Life tumbled 28.8 percentage points to 223.4% — the steepest decline in the segment. In the non-life sector, Samsung Fire gained 12.7 percentage points to 282.8%. DB Insurance fell 27.7 percentage points to 204.4%, and Meritz Fire dropped 10.2 percentage points to 230.5%. Hyundai Marine & Fire Insurance (209.0%) and KB Insurance (187.5%) each posted modest gains of 1.9 and 1.6 percentage points, respectively. NH Non-life Insurance surged 65.1 percentage points to 254.7% (post-transitional measure), while MyBrown tumbled from 513.8% to 231.1%, a drop of 282.7 percentage points. The FSS said it would focus its supervisory resources on ensuring insurers maintain adequate solvency buffers in response to rapidly changing external conditions, including rising market interest rates. It added that it plans to closely monitor insurers with weaker capital structures, pressing them to improve capital quality and strengthen risk management.

Sept. 17, 2026

iM Financial Group wraps up youth talent development hackathon

iM Financial Group held the final hackathon of the "4th National Youth Talent Development Project — iM:POSSIBLE Challenger" on Friday and Saturday at Hotel Interbulgo Exco in Daegu, selecting the top winning teams, the group announced Thursday. Sponsored by the Financial Supervisory Service, the competition challenges university students to build working proof-of-concept models for AI agent-based financial services. Now in its fourth year since launching in 2022, this year's edition strengthened its AI agent education component. The competition expanded its eligibility nationwide last year. A total of 203 teams comprising 372 participants applied during the preliminary registration period in June. After a document screening and four weeks of specialized training, 11 teams and 24 participants advanced to the final round, where they completed overnight development sessions and team presentations. Final rankings were determined by combining presentation scores, training attendance and bonus points for financial consumer protection. The grand prize went to the University of Seoul team "Upossible," which developed a service that automatically calculates climate risks — including flood depth and structural vulnerability of collateral — to support loan screening. Seoul National University's "YdeaBank" team took the excellence award for developing "iM With You," an AI assistant designed to help youth aging out of the foster care system manage their daily lives. Yeungnam University's "iMAX" team won the merit award for "iM SmartQ," a QR-based web service that reduces waiting times at bank branches. Chungbuk National University's "IM:SIGHT" team received an encouragement award for "iM SIGHT," a corporate finance support service connecting business subsidy discovery with environmental, social and governance performance management. A joint team from Soongsil University and the University of Seoul, "Possible Squad," won the special financial consumer protection award for "iM Hamseong," an AI management consulting service for small business owners. Prize money is 10 million won ($7,310) for the grand prize, 5 million won for the excellence award, and 3 million won each for the merit, encouragement and special awards. The three teams that won the grand prize, excellence award and merit award will also receive an invitation to attend the Singapore Fintech Festival in November, along with on-site corporate training opportunities. All winners will be exempt from the document screening stage when applying for positions at iM Financial Group affiliates, including iM Bank, iM Securities, iM Life, iM Capital and iM Asset Management. "Watching university students build fully functional financial services in such a short time confirmed the potential of future finance talent," iM Financial Group Chairman Hwang Byung-woo said. "We will lead the way in discovering talent who can bridge AI and finance, and in spreading the value of inclusive finance."

Sept. 17, 2026

FSS chief warns of wider market volatility as Fed raises rates for first time in over 3 years

Fed hikes rates by 0.25 percentage point for first time since July 2023 FSS reviews stock market risks including foreign capital outflows, AI investment slowdown Exchange rate, foreign-currency liquidity, vulnerable borrowers, non-bank refinancing risks also under watch The Financial Supervisory Service said Thursday it will monitor the potential impact of the US Federal Reserve's first interest rate hike in more than three years on domestic stock and foreign exchange markets, as well as the financial health of local institutions, and prepare for heightened market volatility. The FSS held a financial conditions review meeting chaired by Director General Lee Chan-jin to assess financial market movements and domestic and external risk factors following the Federal Open Market Committee's decision to raise its benchmark interest rate. The Fed raised its benchmark interest rate by 0.25 percentage point Wednesday (local time) to a target range of 3.75 to 4.00 percent — the first US rate increase since July 2023, a gap of three years and two months. The decision was unanimous among FOMC members. The dot plot released that day showed that the median year-end rate projection among 18 of the 19 FOMC members averaged 4.1 percent — 0.3 percentage point higher than the June projection — signaling the possibility of an additional rate hike before year's end. Against this backdrop, the FSS said it will focus closely on the risk of widening volatility in domestic stock markets. The regulator noted that trading hours have lengthened since Korea Exchange launched an aftermarket session from 4 to 8 p.m. on Monday, and that the US rate hike could amplify market swings through potential foreign capital outflows and a slowdown in AI investment. The FSS plans to monitor whether retail investor funds are flowing excessively into high-risk products and will continue tracking trends in margin trading. On the foreign exchange front, the regulator said it will proactively manage financial institutions' foreign-currency liquidity in anticipation that the won-dollar exchange rate — which had recently stabilized — could become volatile again. Movements in the yen stemming from a potential Bank of Japan rate hike and shifts in foreign investor fund flows will also be monitored. The FSS will also examine the interest rate burden on businesses and households. It plans to review corporate funding conditions in the corporate bond and short-term money markets and encourage capital to flow to companies with mid- to low-grade credit ratings and those outside the greater Seoul area. For vulnerable borrowers most exposed to rising rates, the FSS said it will provide support through low-income loan programs, mid-rate lending products and debt restructuring assistance. The regulator will also assess the risk that tighter market liquidity could increase refinancing pressure on securities firms and specialized credit finance companies. Insurers will be directed to strengthen asset-liability management to guard against mounting losses from rising interest rates. "Given the high level of uncertainty in domestic and international markets, we will maintain our response framework on an ongoing basis and, should any warning signs emerge, coordinate with relevant authorities to take market-stabilization measures," Lee said.

Sept. 17, 2026

KB Kookmin Bank launches 'KB AI' service for financial searches and transfers

Natural-language search covers menus, products and FAQs — no banking jargon needed Single chat window handles inquiries and transfers; 16 languages supported Runs in isolated internal environment with end-to-end encryption KB Kookmin Bank has unveiled a generative AI service that understands everyday language and guides customers from financial information searches through to account inquiries and transfers. The bank said it has launched "KB AI," a generative AI-powered conversational financial service, within its KB Star Banking app. KB AI analyzes the meaning and context of a customer's input, allowing users to find the services they need without knowing precise financial terminology or menu names. The service provides integrated natural-language search across menus, financial products and frequently asked questions within KB Star Banking. The service goes beyond search to support actual financial transactions. If a customer types "Show me last month's debit card transactions," the system retrieves the relevant history; a request such as "Send my son 100,000 won ($73) for allowance" connects directly to the transfer service. Customers do not need to navigate separate AI screens for different functions. Searches, inquiries and transfers are all accessible within a single chat window, reducing the steps users must take to find and move between features. The bank also expanded multilingual support for foreign customers. Following the introduction of AI-powered translation for its KB Certificate issuance service in June, KB Kookmin Bank has now applied translation to the KB Star Banking membership registration process — covering everything from account opening to certificate issuance. The number of languages supported in the multilingual menu has also grown from 11 to 16. The AI service operates within the bank's internal environment, isolated from external networks. The bank said it has applied encryption to the transmission of financial and personal data, maintaining the same level of security used for existing financial transactions. "We hope this service makes it easier and more convenient for customers to access financial services," a KB Kookmin Bank official said. "We will continue integrating AI technology across a range of financial services to deliver new experiences for our customers." Meanwhile, KB Kookmin Bank has been broadening its use of AI across operations. On Sept. 9, it deployed a self-developed "complaint counseling AI agent" in the field. On Sept. 3, it held the "2026 Group Integrated AI Agent Competition" to identify AI agents applicable to real-world business tasks — all part of the bank's push to use AI to deliver better financial experiences for customers.

Sept. 17, 2026

Stalled Mapo apartment project achieves 100% pre-sale rate after Kamco fund rescue

Project converted to full PF after 2024 fund injection FSC deputy chief hears proposals from managers of new 3 trillion won fund Financial Services Commission Vice Chairman Kwon Dae-young visited a residential project financing site in Seoul's Mapo-gu that resumed construction after receiving support from the Korea Asset Management Corporation's PF normalization fund, inspecting progress and hearing proposals from the financial and construction sectors. Kwon visited the project financing site in Dohwa-dong, Mapo-gu on Thursday, then held a meeting with officials from the Financial Supervisory Service, the Korea Asset Management Corporation (Kamco), existing Kamco fund managers — including Shinhan Asset Management, IGIS Asset Management, Capstone Asset Management, Koramco Asset Management and KB Asset Management — as well as contractors and developers. The visit followed FSC Chairman Lee Eok-won's inspection of a normally operating PF site on Sept. 10, with Kwon this time turning his attention to a project that had been restructured after facing distress and subsequently resumed construction. The site acquired its land in 2020 and completed permitting in 2022, but a combination of instability in the PF market, a slowdown in the real estate sector and rising construction costs prevented it from converting to full project financing. After a Kamco fund managed by Shinhan Asset Management was deployed in May 2024, the project was restructured by acquiring existing bonds and securing the land and development rights. To improve viability, the original urban residential unit plan was changed to small- and mid-sized apartments and a new contractor was selected. The Kamco fund invested a total of 60.5 billion won ($44.2 million), of which 27.5 billion won came from Kamco's own capital. The restructuring normalized a project worth around 300 billion won; construction broke ground in February this year and pre-sales were completed in April. The 178-unit development achieved a 100 percent pre-sale rate and is scheduled for completion in December 2028. "The significance of the site visited today lies in the fact that, even after construction had halted, the Kamco fund fundamentally improved the project's viability — through changes in land use and contractor — creating conditions for private capital to flow in," Kwon said. The investment performance of the existing Kamco fund was also disclosed. The fund, established in September 2023 with 1.1 trillion won, has disbursed 819.3 billion won to date. Of that amount, 373 billion won has been directed to residential project sites, with approximately 3,881 housing and quasi-housing units expected to be supplied. Kamco President Jeong Jeong-hun said the corporation would swiftly establish a new 3 trillion won fund by the first half of next year in line with the government's Aug. 13 measures, pledging to provide firm support for housing supply and the vitality of the construction and financial ecosystem. Fund managers called for regulatory improvements to allow the new fund to be deployed more smoothly at project sites. Lee Seok-won, chief executive of Shinhan Asset Management, said policy support — including incentives to attract private capital — was needed. Cho Gap-ju, chief executive of IGIS Asset Management, requested greater flexibility in investment targets and conditions to better reflect the circumstances of individual project sites. Koramco Asset Management CEO Yun Jang-ho also asked that fund capital be deployable through a variety of methods, including equity investment and lending. Capstone Asset Management CEO Kim Yun-gu said it was necessary to accelerate capital deployment through cooperation with related agencies, including the Korea Housing Finance Corporation, the Korea Housing and Urban Guarantee Corporation and the Korea Land and Housing Corporation. Financial authorities have designated 325 PF project sites in the greater Seoul area for close monitoring, assigning a dedicated manager to each site and tracking progress. Sites in distress or facing temporary liquidity difficulties will be linked to financial support tools such as the Kamco fund to facilitate normalization. "I hope the private financial sector will come to view the normalization of distressed project sites not merely as a matter of improving asset quality, but as a new investment opportunity to enhance project viability and generate returns," Kwon said. "I urge the financial sector to ensure a reliable supply of capital for housing, so that we can overcome the housing shortage our society faces." Meanwhile, FSC Chairman Lee Eok-won visited a PF site in the transit-oriented area near Pungmu Station in Gimpo, Gyeonggi Province on Sept. 10, reviewing a case of financing secured through Korea Housing Finance Corporation PF guarantees. At the time, Lee called on the corporation to actively extend guarantees and urged private financial institutions to supply capital so that funds needed at viable project sites could be provided in a timely manner.

Sept. 17, 2026

Shinhan Card launches debit card for integrated bank-securities account with up to 1.1% rewards

New debit card exclusively for SOL LINK integrated bank-securities account Earns up to 1% in points based on domestic transaction amount Additional 0.1% when paying via Super SOL; 1% on overseas purchases Up to 20,000 points available for new account openings and card issuance Shinhan Card has unveiled a debit card that bundles banking, securities and card benefits into a single product. Designed exclusively for Shinhan Financial Group's integrated bank-securities account, the card earns up to 1.1% in points when customers pay at domestic merchants using Shinhan Super SOL. Shinhan Card announced Thursday the launch of the SOL LINK Shinhan Card Point Plan debit card, tied to the SOL LINK account — Shinhan Financial Group's integrated bank-securities account. Shinhan Financial Group had previously introduced Super SOL, its integrated financial app, followed by the SOL LINK integrated bank-securities account. The new debit card extends that ecosystem by linking card payment benefits to the existing banking and securities offerings. The card earns up to 1% in My Shinhan Points at domestic merchants, with the rate determined by the amount spent per transaction. Payments made through Super SOL earn an additional 0.1%, bringing the maximum rewards rate to 1.1%. The base rewards rate at domestic merchants rises with the transaction amount: 0.2% for purchases under 20,000 won ($15), 0.4% for 20,000 won to under 100,000 won, 0.8% for 100,000 won to under 500,000 won, and 1% for 500,000 won or more. The card also offers lifestyle benefits covering food delivery and convenience stores. Customers who spend 20,000 won or more per transaction on online food delivery apps on weekends earn 1,000 points per purchase. Spending at major convenience stores — CU, GS25 and Seven-Eleven — earns 5% back, up to a maximum of 3,000 points. Overseas purchases earn 1% regardless of the transaction amount. Cardholders can accumulate up to 20,000 points per month, depending on the previous month's spending. A launch promotion runs from Friday through Nov. 30. Customers who open a new SOL LINK account and receive the debit card will earn 10,000 My Shinhan Points each month they spend at least 30,000 won, up to a maximum of 20,000 points per customer. Cardholders may apply for a postpaid transit card at the time of issuance, and the internationally accepted Visa version supports contactless payments. However, supplementary family cards are not available.

Sept. 17, 2026

Kyobo Life completes Korea's first insurance-sector stablecoin cross-border transfer test

Pilot with Japan's SBI Group verifies full cycle of institutional fund transfer, exchange and settlement First in Korean insurance industry — potential to cut processing time and conversion costs confirmed Regulatory groundwork, including digital asset framework law, must come before real transactions Kyobo Life and Japan's SBI Group have verified a structure for transferring institutional funds directly between yen and won, bypassing the US dollar entirely. It marks the first time a Korean insurance company has tested the full cycle of cross-border institutional fund transfer, currency conversion and settlement using digital tokens. Kyobo Life said Thursday it has wrapped up a "Korea-Japan stablecoin-based cross-border proof-of-concept project" that it has been running with SBI Group since July. The pilot was conducted jointly with SBI Digital Practice, a unit of SBI Group, using test tokens — not actual currency — in a test environment on Canton Network, a blockchain platform designed to securely connect and process transactions between financial institutions. The core of the structure is a direct yen-to-won institutional fund transfer that does not route through the dollar. Under the conventional approach, converting yen to won requires an intermediate step through the dollar, adding multiple conversion and settlement stages that increase processing time, raise costs and introduce exchange-rate risk. The pilot applied a method of converting yen-denominated stablecoins directly into won-denominated stablecoins, verifying with test tokens that funds can move between the two currencies without touching the dollar. Through the exercise, the two companies confirmed the potential to shorten processing times for blockchain-based cross-border fund transfers, cut costs by simplifying intermediate conversion steps, and track transaction information in real time. They also validated an operational model for safely handling in Korea the digital assets transferred from abroad and their associated settlement payments. Kyobo Life said it believes the structure tested in the pilot could, once the relevant regulations and financial infrastructure are in place, serve as a foundation for improving the efficiency of overseas financial transactions and strengthening the transparency of fund flows. Building on the pilot results, the two companies plan to explore further cooperation in Web3 finance — including digital asset exchange and asset management linkages between Korea and Japan, and the development of new business models grounded in actual transaction structures. "Through this pilot, we confirmed the technical feasibility and efficiency of using stablecoins and blockchain for cross-border institutional fund transfers," a Kyobo Life official said. "We will continue to expand our cooperation with SBI Group and respond proactively to changes in Web3 financial infrastructure." Real-world application, however, hinges on regulatory groundwork. The Digital Asset Basic Act — which would establish the legal basis for issuing and distributing won-denominated stablecoins — has been stalled in the National Assembly for more than a year amid disagreements over who should be permitted to issue them. The ruling party plans to hold a public hearing later this month, and the Financial Services Commission is targeting passage of the legislation before the end of the year.

Sept. 17, 2026

Digital asset ETFs see $590M in outflows as CLARITY Act stalls in Senate

Bitcoin ETFs shed $450M, Ethereum ETFs $140M in single day Outflows continue next session as CLARITY Act renegotiation window narrows US regulatory delay could ripple into South Korea's second-phase crypto legislation Investor sentiment in the US digital asset market is wavering after the Senate's path forward for the CLARITY Act — the country's digital asset market structure bill — grew uncertain, with spot digital asset ETFs recording a combined $590 million in net outflows in a single day. While the bill has not been scrapped entirely, the shrinking window for renegotiation has put markets on alert. According to digital asset data platform SoSoValue, US spot Bitcoin ETFs recorded net outflows of $450.33 million on Tuesday (local time). That reversed a net inflow of $160.04 million from the previous session on Monday — a turnaround that came in just one trading day. The daily net outflow from spot Bitcoin ETFs was the largest in roughly three months, since June 25. Spot Ethereum ETFs also saw net outflows of $141.47 million on the same day, reversing $121.02 million in net inflows recorded on Monday. Combined, net outflows from spot Bitcoin and Ethereum ETFs reached approximately $591.8 million in a single day. The outflow trend continued into the following session. As of 9:10 a.m. Thursday, spot Bitcoin ETFs and spot Ethereum ETFs had recorded net outflows of $99.15 million and $13.93 million, respectively, on Wednesday (local time). One factor weighing on investor sentiment is the Senate's failure to advance the CLARITY Act through a cloture vote. The Senate held a cloture vote Tuesday to proceed with debate on the bill, but it failed 49-50 — falling short not only of the 60 votes needed for passage but also of a simple majority. The result has fueled growing expectations in the market that legislation may be difficult to pass before year's end. Lee Jun-ho, a researcher at Hana Securities, said in a report Thursday that the vote outcome should be read as a delay in the timing of the legislation rather than its outright collapse. He noted that the GENIUS Act — last year's stablecoin regulation bill — also failed its first procedural vote before passing on a second attempt, making it premature to declare the CLARITY Act dead based on a single vote. The legislative calendar is tighter for the CLARITY Act than it was for the GENIUS Act, however. "Since the Senate enters recess for constituency activities ahead of the midterm elections starting Oct. 5, if additional negotiations are needed, the timeline could slip to the first half of next year," Lee said. The Democratic Party has long objected to the bill, arguing that it lacks sufficient conflict-of-interest safeguards regarding President Donald Trump and his family's digital asset ventures. The banking sector has also raised concerns that expanded stablecoin yield payments could trigger deposit outflows. Republicans incorporated some of those demands through last-minute amendments but ultimately failed to secure bipartisan consensus. Lee said that even if the CLARITY Act is delayed, the broader trajectory of US digital asset institutionalization remains intact. He pointed to the GENIUS Act already having been enacted, and to the SEC and the Commodity Futures Trading Commission using their existing authority to build out a regulatory framework for digital assets. The delay could also have indirect implications for South Korea's own regulatory timeline. Lee noted that with domestic discussions on second-phase digital asset legislation already lagging, a further delay in US market structure legislation could push back South Korean policymakers' deliberations as well, given their tendency to reference the US framework. "Since deposit outflows and stablecoin yield issues remain unresolved sticking points in the CLARITY Act in the US, there will likely be spillover effects on domestic discussions," Lee said. "Unlike global companies, Korean firms have been operating in an environment where commercialization ahead of regulation is difficult, and there is a risk that their competitiveness will continue to erode."

Sept. 17, 2026

Shinhan Financial expands Central Asia footprint with deals in Uzbekistan, Kazakhstan

Up to $200m in funding planned for Uzbek financial institutions MOU signed with Kazakhstan's state development finance group Baiterek Shinhan Financial Group has signed back-to-back agreements with government bodies and state institutions in Uzbekistan and Kazakhstan, stepping up its push into Central Asian financial markets. Shinhan Financial announced Thursday that it concluded financial cooperation agreements with Uzbekistan's Ministry of Investment, Industry and Trade and Kazakhstan's state-owned development finance group Baiterek on Monday and Tuesday, respectively. Under the agreement with Uzbekistan's ministry, Shinhan Financial will establish a funding line of up to $200 million for local financial institutions and jointly identify investment projects. The group also plans to participate in project financing for infrastructure and renewable energy, and to develop follow-up projects through a regular consultative body. The deal builds on discussions Shinhan Financial has held with Uzbek government officials since last year, including meetings with the country's deputy prime minister in December 2025 and the minister of investment, industry and trade in June this year. Following the signing, Shinhan Financial Group Chairman Jin Ok-dong held a separate meeting with Uzbek President Shavkat Mirziyoyev, who was visiting South Korea for a summit, to discuss the development of Uzbekistan's financial industry and the expansion of Shinhan Financial's business there. Shinhan Bank has been pursuing the establishment of a local subsidiary, drawing on the experience it has accumulated since opening a representative office in Tashkent in 2009. Shinhan Financial also signed an MOU with Baiterek on the sidelines of a Korea-Kazakhstan business roundtable held the same day. The two sides agreed to share financial information and expertise through job training, site visits and seminars. They also plan to expand financial support for Kazakhstan's industrial and infrastructure development and for Korean companies operating in the country. "We will translate our investment and procurement cooperation with Uzbekistan into concrete outcomes and support the shared growth of our financial industries," Jin said. "With Kazakhstan, we will deepen the exchange of financial expertise and expand support for infrastructure and corporate finance, strengthening our role as a financial bridge between Korea and Central Asia."

Sept. 17, 2026

Chuseok driving with a co-pilot? Sign up for the add-on rider the day before you leave

Toss Insurance releases lifestyle-based holiday insurance guide Temporary driver rider takes effect at midnight on the day of enrollment Travelers abroad should check baggage loss and flight delay coverage Even a one-day delivery or warehouse shift requires notifying your insurer Anyone planning to share driving duties on the Chuseok holiday road trip must sign up for the temporary driver rider on their auto insurance policy no later than the day before departure. Those picking up short-term work at a warehouse or making deliveries during the holiday break — even for a single day — must notify their insurer of the job change to avoid having a claim denied. Toss Insurance, a general insurance agency, released a "Chuseok holiday lifestyle-based insurance guide" Thursday with these and other tips. The company noted that people are spending the Chuseok holiday in increasingly varied ways — not just visiting their hometowns but also traveling abroad, resting alone or taking on short-term work — and organized the guide around those different profiles. For those heading home to see family, the company said long-distance driving and the risk of leaving a home unattended are the two main concerns. Anyone stuck in holiday traffic and planning to share the wheel should make the temporary driver rider on their auto insurance policy their first priority. Because the rider takes effect at midnight on the day of enrollment, policyholders must complete sign-up by the day before departure to ensure coverage is active when they set off. Those who may need to drive someone else's car should also check whether their policy includes an "other vehicle driving" rider. Anxiety about theft while away for several days can also be eased simply by confirming whether a household theft coverage rider is included in a fire insurance policy. For those taking advantage of the long break to fly somewhere, reviewing overseas travel insurance should come first. Baggage loss and damage incidents are particularly common during the crowded holiday travel season due to airport congestion. Rather than simply hunting for the cheapest premium, travelers are advised to carefully check the limits on "portable property loss coverage," which compensates for lost or damaged personal belongings, and "flight delay compensation," which covers accommodation and meal costs arising from cancellations or delays caused by bad weather. Those spending the holiday alone at home need to think about everyday risks. With more time spent indoors, it is worth checking whether a household liability rider is in place to cover situations such as water leaks that damage a downstairs neighbor's unit or other unexpected accidents in daily life. Particularly important: anyone taking even a single day of short-term work at a logistics center or making deliveries during the busy holiday season must fulfill the "duty to notify" by informing their insurer of the change in occupation or duties. If a person is injured while doing work that carries a higher accident risk and has not given notice, the insurer may deny the claim or cancel the policy on grounds of a notification breach. "As customers' lifestyles during the holidays become more diverse, a practical insurance review tailored to each person's own pattern is becoming necessary," a Toss Insurance official said. "We hope this guide helps people smartly secure the coverage that fits their situation and enjoy a safe and fulfilling holiday."

Sept. 17, 2026