Korea

The FSC will impose lower penalties than what was recommended by the FSS, citing the two banks’ cooperation and their agreements to compensate clients for damages.

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The FSC will cap illiquid investments at 50% for open-ended funds, require them to conduct regular stress tests, raise transparency of complex fund structures, and enhance supervisory monitoring.

Funding will be provided through policy banks to help SMEs, small merchants, and self-employed business owners address financing challenges amid the coronavirus outbreak.

The FSC has granted final approval to KakaoPay allowing it to acquire Baro Investment & Securities and enter the brokerage services space.

The FSS has identified at least four firms whose funds face potential liquidity crisis risks, similar to Lime Asset Management, which has so far frozen 1.7tr won in assets.

While Hong Kong and Korea are scheduled to undergo the assessment, as required every five years, the Philippines has voluntarily requested its assessment.

The FSS is also recommending a 20-billion-won penalty be imposed on both banks, and for some of their operations to be suspended for six months.

The FSC is seeking comment on a draft enforcement decree setting out entry requirements, operating rules and investor protection measures for the P2P lending sector.

Institutional investors who mirror the KOSPI 200 index may need to offload an estimated 500-800bn won worth of Samsung Electronics shares to rebalance their portfolios.