[DigitalToday reporter Lee Ji-young] Financial authorities are speeding up efforts to tighten capital market discipline. The Financial Supervisory Service plans to deal strictly with illegal acts aimed at avoiding delisting and to encourage the timely exit of so-called "zombie firms". Korea Exchange will also sharply raise standards for winding down weak companies, including introducing rules from July to delist penny stocks.

The issue of duplicate listings has also emerged as a key task. Authorities aim to limit duplicate listings in principle and to tighten screening further if there is a risk of harming minority shareholders' interests. The exchange detailed listing review standards by presenting "three main review pillars" focused on independence, shareholder protection and business structure.

By contrast, conclusions on some pending issues have been delayed. A decision on fines related to mis-selling of Hong Kong ELS has been postponed for a second month, and approval for Samsung Securities' commercial paper business has again been put on hold.

The exchange, the Korea Securities Depository and the Korea Financial Investment Association are also working in parallel to improve market infrastructure, including conducting on-site inspections to respond to shortened settlement cycles in the United States and Europe.

• FSS to crack down on illegal acts to avoid delisting, encourage timely exit of "zombie firms" • Korea Exchange to introduce rules from July to delist weak firms, including new "penny stock delisting" provisions • "Duplicate listings are a cause of the Korea discount... voting rights of ordinary shareholders should be strengthened" • Lee Eok-won (이억원): "Duplicate listings banned in principle... strict screening if benefits concentrate on a minority" • Korea Exchange presents three pillars for duplicate listing reviews: "We will look strictly at independence and shareholder protection" • Hong Kong ELS fine decision delayed again... Financial Services Commission deliberates for a second month • Samsung Securities approval for commercial paper business fails again... not placed on FSC agenda • Korea Exchange, Korea Securities Depository and KOFIA conduct on-site inspections on U.S. and EU settlement cycle shortening

The stock market is searching for direction between expectations of gains and external variables. The KOSPI has continued to rise led by semiconductors as it nears a break above a previous high, but analysis suggests sector diversification is needed for further gains. Comments by a Federal Reserve official about the possibility of delayed rate cuts are weighing on the market.

In terms of flows, foreigners were confirmed to have made net withdrawals since March of about 43 trillion won from stocks and about 10 trillion won from bonds. In commodities, gold is expected to hinge on $5,155, while silver has rebounded sharply on dollar weakness, increasing volatility.

Shin Hyun-song (신현송), a candidate for Bank of Korea governor, attended a confirmation hearing last week and signalled a cautious approach on monetary policy while stressing a commitment to market stability.

• [Market outlook] KOSPI nears breaking above previous high... "Need a portfolio to complement semiconductors" • Fed governor: "There may be no rate cuts in 2026... inflation shocks could last longer" • Foreigners net sell 43 trillion won in stocks in March... also withdraw 10 trillion won from bonds • Gold at $5,155 is a watershed... a break could spur a rebound; resistance could resume declines • Silver surges on weaker dollar... market focus on $84 • BOK governor candidate Shin Hyun-song: "Sorry about personal issues"... states positions on monetary policy and stablecoins

The fintech industry is seeking a shift to a new growth phase, driven by expanded rules and business diversification. A full expansion of the MyData programme is seen as an opportunity to broaden the scope of data use and strengthen platform competitiveness. At the same time, the industry is moving beyond simply expanding users and is shifting in earnest toward profit-focused business structures.

Individual companies are also accelerating service upgrades. Naver Pay is supplying "Npay Connect" and integrating payments and reviews as it seeks to expand a merchant-based ecosystem. Toss is also working with the Korea Franchise Industry Association to promote the spread of "Face Pay" and strengthen offline payment innovation.

• Full expansion of MyData... bigger opportunity for fintech industry • Fintech industry moves from topline growth to profitability competition • Naver Pay supplies "Npay Connect" to Paris Baguette... integrates payments and reviews • Toss signs MOU with Korea Franchise Industry Association... promotes "Face Pay" rollout

Competition for leadership in the retirement pension market is intensifying among financial firms. Shinhan Bank maintained its lead by ranking No. 1 across the financial sector by accumulated reserves, while Hana Bank moved to catch up by highlighting that it ranked No. 1 in reserve growth in the first quarter.

Brokerages are also increasing their presence. Mirae Asset Securities drew inflows of about 4 trillion won, accounting for about 33 percent of the overall market, showing strong fund جذب. As competition between banks and brokerages becomes clearer, market reshuffling is accelerating around returns and product competitiveness.

• Shinhan Bank: "Achieved No. 1 in retirement pension reserves across the financial sector" • Hana Bank: "No. 1 in retirement pension reserve growth in the first quarter" • 4 trillion won flows into Mirae Asset Securities' retirement pension... about 33 percent of total market

Other key moves in the financial and fintech sectors were also compiled.

The financial sector is strengthening competitiveness with a focus on consumer protection and service upgrades. KB Financial Group is working with the National Police Agency to prevent financial fraud and traffic accidents, while KB Kookmin Bank is pushing to enhance AI video consultations and strengthen protection systems across the entire loan process.

Shinhan Bank is also focusing on expanding its customer base and improving convenience by widening support to prevent jeonse fraud, expanding cooperation on its "Bank-in platform" and launching a high-interest parking account.

• KB Financial Group cooperates with National Police Agency on preventing financial fraud and traffic accidents • KB Kookmin Bank upgrades AI-based "KB video consultation service" • KB Kookmin Bank strengthens consumer protection system across the entire loan process • Shinhan Bank expands support for preventing jeonse fraud... supports guarantee fees for youth and vulnerable groups • Shinhan Bank expands cooperation with Douzone Bizon on "Bank-in platform" • Shinhan Bank launches high-interest parking account "Olive Young SOL account"

Support functions for companies are also being strengthened, centred on expanding productive finance. Hana Financial Group has created a "productive finance academy", and Hana Bank is working on cooperation with strong small and medium-sized firms and building foreign investment infrastructure.

Woori Bank is investing about 3 trillion won in the defence industry and expanding cooperation to support business succession, while also stepping up efforts to prevent financial incidents by strengthening management of corporate accounts. NH NongHyup Financial Group is also expanding industry-focused support by opening a comprehensive support centre for maritime, aviation and defence in the southeast region.

• Hana Financial Group creates "productive finance academy" • Hana Bank signs agreement with association of strong small and medium-sized firms... expands financial support • Hana Bank joins hands with Next Securities to strengthen foreign investment infrastructure • Woori Bank strengthens management of dormant and closed corporate accounts... blocks mule accounts • Woori Bank injects 3 trillion won of productive finance into K-defence industry • Woori Bank cooperates with Kim & Chang and SamilPwC to support business succession • NH NongHyup Financial Group opens comprehensive support centre for maritime, aviation and defence in the southeast region

Internet-only banks are also moving to strengthen competitiveness through partnerships and technology upgrades. KakaoBank signed an agreement with Busan Bank on joint loans to small and medium-sized enterprises, K Bank introduced AI search, and Toss Bank is strengthening customer convenience and fraud prevention functions through abnormal transaction detection and other measures.

• KakaoBank signs joint loan agreement with Busan Bank for small and medium-sized enterprises • K Bank introduces AI integrated search... "Search possible even without knowing financial terms" • Toss Bank introduces "SurPASS"... strengthens financial fraud prevention

Financial firms are also running customer events to attract customers and grow assets. IBK Industrial Bank of Korea is holding an event to ease the burden of fuel costs, while KB Kookmin Bank and Woori Bank are running promotions related to IRPs and pension investment, respectively.

Various benefits, including a prize event for post office funds and Toss Bank's 2 percent interest-rate promotion for new customers, are adding to intensifying competition to secure customers.

• IBK Industrial Bank of Korea runs event to ease fuel cost burden... provides points and coupons • KB Kookmin Bank holds event for joining investment products for individual IRPs • Woori Bank holds "Pension investment with an expert pick" event • "Let's grow our family's assets"... prize event for joining "post office funds" • Toss Bank offers 2 percent account interest-rate promotion for new customers