Financial authorities have eased parts of their household loan management stance, opening room to supply funds to end-users.

The Financial Services Commission raised its target for the growth rate of total household loans in the financial sector this year to 3 percent from 1.5 percent. It also decided to pursue financial support of 47.8 trillion won plus alpha to expand housing supply.

With loan caps quickly being used up by bank, so-called “loan open runs” repeated. The policy was adjusted toward widening room for loan supply.

With the overall target doubled, the banking sector’s annual capacity to handle household loans is expected to expand to around 60 trillion won.

Household loan growth itself has recently shown a somewhat moderating trend. Household loans across the financial sector rose 6.2 trillion won in July, marking a second consecutive month of a smaller increase.

The government also decided to speed up housing supply in the Seoul metropolitan area along with expanding loan supply. It plans additional supply of 230,000 homes plus alpha in the region and will announce 100,000 homes worth of new sites within the year.

While maintaining its household debt management stance, the policy focus appears to have shifted somewhat toward supporting both end-user loans and housing supply.

• FSC raises total household lending target to 3 percent… housing supply finance of 47.8 trillion won plus alpha • After “loan open runs,” cap doubled… banks’ lending capacity to expand to around 60 trillion won • July household loans up 6.2 trillion won… increase narrows for a second month • Government to add 230,000 homes plus alpha in the Seoul metro area… to announce 100,000 homes in new sites within the year

Discussions on blocking scraping in the financial sector have moved toward a phased transition rather than an across-the-board ban.

The Financial Services Commission formed a consensus on not blocking scraping all at once to reduce confusion for financial companies and the fintech industry.

Financial and fintech companies that have provided various financial services relying on scraping have eased concerns about an immediate service shutdown.

Still, the existing approach will not remain unchanged, as issues have been raised over personal data protection and the legality of information collection methods.

Financial authorities plan to phase down scraping while preparing steps to use alternatives such as public MyData.

The fintech industry avoided a sudden regulatory shock but now faces the task of shifting to a new data linkage system.

• No blanket shutdown of “scraping”… fintech industry breathes easier • FSC consensus on “phased implementation” of scraping curbs… to prepare alternatives such as public MyData

Banks also moved to strengthen security to prevent smishing and investment fraud as loan scam 피해 has led to large-scale financial incidents.

The scale of financial incidents related to loan scams at Shinhan, Woori and IBK Industrial Bank has expanded to a total of 49.0 billion won.

Banks are also speeding up security 강화 to prevent incidents. KB Kookmin Bank introduced a real-time smishing detection service in its KB Star Banking app.

Hana Bank also enhanced its abnormal transaction detection capabilities by upgrading its fraud detection system, preventing 18.5 billion won in losses from “KReSIM” investment fraud.

• Banking sector loan scam financial incidents total 49.0 billion won… amounts at Shinhan, Woori and IBK Industrial Bank rise • KB Kookmin Bank launches real-time smishing detection service in KB Star Banking • Hana Bank prevents 18.5 billion won in losses from “KReSIM” investment fraud by upgrading FDS

Major brokerages continue to post improved performance, helped by a surge in stock market trading value. The combined second-quarter operating profit of the five largest brokerages was tallied at 584.6 billion won.

Meritz Securities posted first-half operating profit of 501.3 billion won, up 11.8 percent from a year earlier. Mirae Asset Securities’ second-quarter operating profit surged 397.5 percent to 2.49 trillion won.

A buoyant market and higher trading boosted brokerage revenue, driving the improvement in earnings at securities firms.

• Five largest brokerages smile on trading value surge… second-quarter operating profit of 584.6 billion won • Meritz Securities first-half operating profit 501.3 billion won… up 11.8 percent on year • Mirae Asset Securities second-quarter operating profit 2.49 trillion won… up 397.5 percent on year

Still, as market volatility increased, some standby investment funds shifted into bank deposits.

Investor deposits fell below 100 trillion won, the lowest level in six months. In the banking sector, signs of renewed competition for deposits have been detected, with a series of high-interest products being launched.

In the stock market, expectations are also rising for the KOSPI to return to the 7,000 level, alongside foreign fund inflows. As volatility and rebound expectations intersect, funds appear to be seeking direction between deposits and stocks.

• As stocks wobble, money returns to deposits… competition for bank deposits stirs • Stock market standby funds break below 100 trillion won… investor deposits lowest in six months • Shinhan Bank launches “Shinhan Savings 9 Levels” with up to 9 percent annual rate… limited to 200,000 accounts • Daol Savings Bank reorganises deposit and loan product lineup… broadens customer base • [Stock outlook] KOSPI 7,000 level in sight… watch foreign return and U.S. rate trend

In capital markets, moves continued to strengthen investor protection and market soundness.

The exchange applied tougher delisting requirements for the first time, designating 36 penny stocks and low market-cap names as issues under management.

In a case related to Samsung Securities’ “phantom shares” incident, a ruling ordering it to pay 1.87 billion won to the National Pension Service was finalised after a lawsuit that lasted seven years.

In the investment industry, calls emerged to invest long term in growth industries rather than using short-term leverage. Securities Plus introduced a “value chain map” that shows industry structures at a glance.

• Exchange applies tougher delisting rules for first time… 36 penny and low-cap stocks designated as issues under management • Samsung Securities “phantom shares” case ends after seven years… payment of 1.87 billion won to NPS confirmed • Jae-kyu Bae (배재규), head of Korea Investment Management, says long-term investment in growth industries is needed, not leverage • Securities Plus launches “value chain map” showing industry structures at a glance

Other key developments in finance and fintech were also summarised.

KB Financial Group released a video to mark the 81st anniversary of Liberation Day, and KB Kookmin Bank began providing 100.0 billion won in policy finance support to emergency medical institutions outside the Seoul metropolitan area.

Shinhan Financial Group held a wealth management forum joined by group affiliates including its bank and securities unit. Shinhan Bank opened “Shinhan SOL Cluster” in Busan to strengthen financial support for the marine industry.

• KB Financial Group releases “Daehan Lives On, Sung Together” video for the 81st Liberation Day anniversary • KB Kookmin Bank provides 100.0 billion won in policy finance support to emergency medical institutions outside the Seoul metro area • Shinhan Financial Group holds wealth management forum with bank, securities and other affiliates participating • Shinhan Bank opens “Shinhan SOL Cluster Busan”… strengthens financial support for the marine industry

Hana Financial Group expanded financial support for older people in Incheon ahead of its relocation to Cheongna, and Hana Bank moved to invigorate testamentary substitute trusts and the guardian system with the Korea Association of Certified Tax Accountants.

It also set up a “foreign exchange capital transactions center” in Seoul’s Gangnam district to strengthen foreign exchange expertise. Woori Bank introduced a service allowing customers to pay additional fees for overseas remittances via mobile.

• Hana Financial Group expands outreach financial support for older people in Incheon ahead of relocation to Cheongna • Hana Bank joins hands with Korea Association of Certified Tax Accountants… promotes testamentary substitute trusts and guardian system • Hana Bank sets up “foreign exchange capital transactions center” in Seoul’s Gangnam… strengthens FX expertise • Woori Bank launches mobile payment service for additional fees on overseas remittances

Toss worked with Kyobo Life Insurance to verify the potential use of digital assets in insurance. It also moved to enhance loan screening for mid-to-low credit borrowers using “Toss Score” with Korea Savings Bank and PFCT.

Naver Pay pursued cooperation with Korea Electric Power Corp to digitalise electricity bill billing and collection.

• Toss cooperates with Kyobo Life on digital assets… verifies potential uses including insurance • Toss, Korea Savings Bank and PFCT enhance loan screening for mid-to-low credit borrowers using “Toss Score” • Naver Pay cooperates with KEPCO to digitalise electricity bill billing and collection

In the fintech industry, service areas continued to expand, including AI, payments, lending and financial services for foreigners.

Banksalad expanded counselling services by operating “BFS Class 1,” an AI-based insurance counselling organisation.

Danal posted first-half revenue of 115.4 billion won and moved to expand global payments and its stablecoin business. NHN KCP posted quarterly record results with second-quarter revenue of 383.4 billion won and transaction value of 17.0 trillion won.

Crple said credit scores rose for 2 out of 3 refinancing loan customers, while CrossENF pursued cooperation with KB Kookmin Card on financial services for foreigners’ everyday needs.

• Banksalad expands AI-based insurance counselling… operates “BFS Class 1” • Danal first-half revenue 115.4 billion won… “expanding global payments and stablecoin business” • NHN KCP posts quarterly record… second-quarter revenue 383.4 billion won and transaction value 17.0 trillion won • Crple says credit scores rose for 2 out of 3 refinancing loan customers… average 35.4 points • CrossENF cooperates with KB Kookmin Card on everyday finance services for foreigners