Finance

Financial Services Commission eases loan-to-deposit ratio rules for regional firms, sole proprietors

South Korea's Financial Services Commission said on Tuesday it will give advance notice of a revision to banking supervision rules to ease loan-to-deposit ratio standards for loans to companies and sole proprietors based outside the Seoul metropolitan area. The measure lowers weighting applied to such loans by 5 percentage points each. The commission estimated banks' lending capacity for regional firms and sole proprietors could rise by up to 21 trillion won, assuming current ratios are maintained.

Finance

Brokerages to supply 22.5 trillion won in risk capital over three years, seven big firms join

South Korea's major brokerages will supply 22.5 trillion won in risk capital over the next three years as part of a shift toward “productive finance.” The Financial Services Commission said it held a meeting in Seoul on Jan. 21 chaired by Vice Chairman Kwon Dae-young (권대영). Financial authorities and the industry agreed to invest 1,240 trillion won in productive finance over five years, including 614 trillion won from the private sector and 626 trillion won in policy funds.