Bank of Korea

Securities / Derivatives

FSC Korea Imposes Complete Ban on Short-Selling for Six Months

By Editors | 14/03/2020

The FSC is also loosening rules on share buybacks and lifting minimum collateral coverage requirements for securities firms, while the BOK considers an interest rate cut.

Securities / Derivatives

S. Korea Tightens Short Selling Rules to Curb Market Volatility

By Editors | 10/03/2020

Starting from Wednesday, the new rules will extend the current 1-day prohibition on ‘overheated short-selling stocks’ to 10 days, while lowering the thresholds for the designation.

Market Infrastructure

Central Banks Act to Mitigate Covid-19 Economic Threat

By Editors | 04/03/2020

The HKMA has responded to the US rate cut with a cut of its own. The RBA and BNM have also cut their key policy rates, while the BOJ focuses on asset purchases.

Securities / Derivatives

S. Korea Set to Introduce Trade Repository in October

By Editors | 03/03/2020

Legislative revisions have been approved establishing statutory provisions for a trade repository, and penalties up to 100mn won for failures to report OTC derivatives transaction information.

Fintech / Regtech

Bank of Korea Experiments with Blockchain for Bond Settlement

By Editors | 21/02/2020

Under the proof of concept system now being developed, bond issuance, management, settlement and recordkeeping will be done using blockchain technology.

S. Korea to Deploy Emergency Measures to Minimise Covid-19 Impact

By Editors | 17/02/2020

The central bank is working on financial aid packages for the sectors directly affected by Covid-19, on top of the 1.9bn won package already announced by the government to aid SMEs and small merchants.

Enforcement

Nine Korean Banks Face Legal Action for Selling Loss-Making Funds

By Editors | 09/01/2020

Investors are reportedly preparing for a suit against banks which sold them loss-making funds from Lime Asset Management without properly disclosing the risks.

Capital / Liquidity

Korea to Impose Loan-to-Deposit Cap on Savings Banks

By Editors | 21/10/2019

The loan-to-deposit rate at savings banks will be limited to 110% starting from 2020, and further tightened to 100% in 2021. Currently, commercial banks already face the 100% limit.

Market Infrastructure

Korean Banks Boost Spending of Cybersecurity, IT: BOK

By Editors | 17/09/2019

Banks are increasingly relying on outsourcing for cloud computing, which may become a potential vulnerability if adequate precautions are not in place.