South Korea’s Financial Services Commission (FSC) has introduced cross-sector measures to strengthen how the financial system identifies and manages risks linked to major industrial accidents, as part of the government’s broader industrial safety plan. The package spans credit and guarantee underwriting, insurance premium setting, policy finance incentives, and capital markets disclosure and assessment. Industrial accidents will be reflected in bank credit evaluations, with common rules to apply across all banks on reducing or suspending loan commitments following a major industrial accident. For project finance guarantees provided by the Korea Housing Finance Corporation, screening criteria will be tightened for defective construction and safety accidents, while firms certified for strong safety management performance will be eligible for discounted guarantee fees. In insurance, up to a 15 percent surcharge may be added to accident liability and construction-related premiums after a major industrial accident, alongside premium discounts for companies certified to occupational health and safety standards such as ISO 45001. The Korea Development Bank and the Industrial Bank of Korea will introduce new loan and guarantee incentive programmes for companies investing in new safety facilities and those holding safety certifications. In capital markets, companies will be required to disclose major industrial accidents and court decisions under the Serious Accidents Punishment Act through Korea Exchange filings, and to provide more detailed and follow-up information via business reports and semi-annual disclosures; major industrial accidents will also be integrated into ESG evaluation guidance and the Korea Stewardship Code for use by institutional investors. The FSC plans to pursue follow-up measures to implement the package across the relevant financial sector areas.
South Korea Financial Services Commission 2025-09-17
South Korea Financial Services Commission introduces lending, insurance pricing and disclosure requirements tied to major industrial accidents
South Korea's Financial Services Commission has unveiled measures to enhance risk management for major industrial accidents, aligning with the government's safety plan. The initiative includes adjustments in credit evaluations, insurance premiums, policy finance incentives, and capital markets disclosures. Key elements involve tightened screening for project finance guarantees, insurance surcharges, and mandatory disclosures under the Serious Accidents Punishment Act.