South Korea's Financial Services Commission on Dec. 28 designated five banking companies as domestic systemically important banks, or D-SIBs, for 2017.

The FSC designated four banking groups --- Shinhan Financial Group Co. Ltd., KB Financial Group Inc., Hana Financial Group Inc. and NongHyup Financial Group Inc. --- and Woori Bank as D-SIBs for 2017. Under the designation, the banking units of the four groups were also designated as D-SIBs.

South Korea in June 2015 announced plans to adopt the framework for dealing with D-SIBs, starting January 2016. Among other requirements, a bank or bank holding company identified as a D-SIB will be subject to the higher loss absorbency, or HLA, requirement of 1%, which should be met by common equity Tier 1.