The South Korea Financial Services Commission has approved the 2025 recovery plans prepared by domestic systemically important financial institutions (D-SIFIs) and their resolution plans drawn up by the Korea Deposit Insurance Corporation, in line with Financial Stability Board recommendations. The plans cover 10 D-SIFIs, comprising Shinhan, KB, KEB Hana, Woori and NongHyup financial holding companies and their respective banks. The FSC assessed the plans as mostly meeting international standards and requirements under the Act on the Structural Improvement of the Financial Industry, while notifying the Korea Deposit Insurance Corporation and the SIFIs of elements requiring improvement and obstacles identified for resolution execution. Compared with the previous year, the approved plans include tools and mechanisms intended to strengthen firms’ advance preparedness for risk scenarios and enable swifter resolution proceedings. Recovery and resolution planning is operated on an annual cycle, and the authorities plan to review and approve plans for D-SIFIs selected for 2026.
South Korea Financial Services Commission 2025-07-23
South Korea Financial Services Commission approves recovery and resolution plans for 10 domestic systemically important financial institutions
The South Korea Financial Services Commission approved the 2025 recovery and resolution plans for 10 domestic systemically important financial institutions (D-SIFIs), including major financial holding companies and their banks. The plans, mostly meeting international standards, incorporate tools to enhance risk preparedness and expedite resolution proceedings. The Korea Deposit Insurance Corporation and D-SIFIs were notified of areas needing improvement.