Move is part of President Moon Jae-in’s Chaebol clean-up campaign, follows proposal to make agencies liable for ‘defective ratings’.
Regulator calls on banks to strictly screen mortgage applications as household debt increases by $15.9bn over July and August.
Only 60% of bonuses to be paid up front, remaining 40% to be paid out over three years but can be cut or clawed back if investments lose money.
Measures are expected to sharply increase incidences of excessive short selling; new categories of offence come with heavier maximum penalty.
FSC to come up with deregulation plan by end-of year; wants more challengers to financial sector incumbents after approval of internet-only banks.
FSS figures show banks have made $57.6bn from fees since 2013; President Moon pledged to tackle issue of excessive fees but no action has been taken yet.
Second-tier lenders required to increase loan-loss provisions by 50%; maximum mortgage LTV/debt-income ratios cut to 60%/50%.
Move allows foreign investors to conduct multiple transactions through a single account with a global firm.
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