The South Korea Financial Services Commission has approved the recovery plans submitted by 10 domestic systemically important financial institutions selected for 2026 and the corresponding resolution plans prepared by the Korea Deposit Insurance Corporation. The plans, which are subject to annual approval under South Korea's recovery and resolution framework, were assessed as mostly meeting international standards and the requirements of the Act on the Structural Improvement of the Financial Industry. The 10 D-SIFIs are Shinhan, KB, KEB Hana, Woori and NongHyup financial holding companies and their banks. The commission identified some areas for improvement in the resolution process, particularly cybersecurity and digital bank run preparedness, and notified the institutions and the Korea Deposit Insurance Corporation. Compared with the previous year, the approved plans include tools and mechanisms intended to help large financial firms prepare for and respond to stress earlier, while enabling resolution authorities to carry out resolution proceedings more quickly. The framework operates on a yearly cycle, and the authorities plan to review and approve plans for the 2027 D-SIFIs in due course. In the second half of the year, the relevant authorities and D-SIFIs plan to conduct a joint exercise to test and strengthen risk response capabilities.

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