South Korean regulators on July 2 rolled out new regulations on groupwide risk management and capital adequacy requirements for conglomerates holding at least 5 trillion won in financial assets and units in two or more financial sectors.
The country's Financial Services Commission said the new supervisory rules target seven groups: Samsung Group, Hanwha Group, Kyobo Life Insurance Co. Ltd., Mirae Asset Financial Group, Hyundai Motor Co., Dongbu Group and Lotte Group.
The regulator will update the list of regulated financial conglomerates in early 2019 based on financial assets as of the end of 2018. They also cover intragroup transactions and risk concentration and groupwide capital adequacy requirements.
Meanwhile, the FSC released two sets of draft guidelines on groupwide capital adequacy evaluation and risk management evaluation. The follow-up guidelines will be finalized by the end of 2018 and will set specific capital adequacy requirements and risk management evaluation criteria for different financial conglomerates, the regulator said.
In addition, the FSC will submit a bill to the National Assembly before September to enact a new law on financial conglomerates.
As of July 2, US$1 was equivalent to 1,119.63 South Korean won.