Seoul: South Korea’s financial watchdog announced plans to strengthen the management of household debt and intensively monitor financial risks. The Financial Supervisory Service (FSS) emphasized the importance of these measures in light of ongoing macroeconomic uncertainties, such as the economic slowdown and shifts in monetary policy, as outlined in its 2025 policy report.
According to Yonhap News Agency, the FSS plans to take proactive steps to counter potential market issues by identifying risks early. This includes collaborating with the Bank of Korea to conduct stress tests on financial institutions and bolster market surveillance.
The FSS also intends to upgrade its supervisory and regulatory frameworks, foster digital innovation through artificial intelligence, and support the financial sector’s pursuit of future growth opportunities. Additionally, the watchdog has committed to addressing improper sales of financial products and incidents within the banking sector.
As part of its regulatory efforts, the FSS is currently reviewing Woori Financial Group’s attempt to acquire a life insurance company. This review follows concerns about possible approval challenges tied to financial incidents at Woori Bank, a key unit of the group. The FSS is evaluating Woori Financial’s business performance and internal controls as part of this process.