Innovative team of financial groups to start… Samsung & Hanhwa and Lotte expected to be first
[ Cho Eun Guk ceg4204@ ] | 2017-12-11 10:21:38
The Financial Authority is expected to establish a separate organization to oversee the large group of companies holding financial companies. Accordingly, major financial groups such as Samsung, Hanwha and Hyundai are expected to receive more intensive supervision and regulation.
The Financial Supervisory Commission will set up a financial group supervisory and innovation team to oversee the financial group`s integrated supervision. The group will consist of a supervisory team that oversees the overall supervision of the financial group, and a governance team that will review the situation in detail over the medium to long term in relation to the financial group governance structure and to carry out an overall evaluation.
Meanwhile, Financial Group Integrated Supervision has become a necessity in 2013 as it causes unfair sales of corporate bonds and CPs of stolen affiliates through financial affiliates, causing damage to financial consumers reaching several trillion won.
However, the failure of some affiliates can be transferred to the group`s overall risk due to insufficient supervision of these financial groups, and risk is concentrated or transferred to financial companies with less regulatory costs in the financial group I have received an indication.
Therefore, the Financial Supervisory Commission will establish an autonomous supervisory system through the launch of the supervisory board of the financial group and strengthen the soundness and stability of the financial system through integrated supervision of financial groups. An official from the Financial Supervisory Commission said, "We will create a framework for integrated supervision, or take charge of the overall supervision team and the target and concrete supervision plan have not been confirmed, and will be confirmed after the launch of the innovation team."
The company plans to announce the target of integrated supervision and the direction of integrated group supervision, which includes major tasks and schedule, from January this month. In addition, the company will release the best regulations by early next year and prepare them for each financial group. In the second half of next year, it will operate an integrated supervision system based on best practices. In addition, in order to enhance the effectiveness of financial supervision, it plans to legislate the integrated supervision of financial groups in the next year.
"The supervision of the financial group is one of the tasks of the new government, and the market has a lot of interest and expectation," stated Choi Jong-koo, chairman of the finance committee on the 8th. "We expect a lot of complicated tasks, "As the organization and manpower are backed up, please push forward more rapidly."
As the government officially launched the Financial Supervisory Commission, the financial groups of Samsung, Hanwha, Hyundai, and Lotte Group will be more regulated and supervised than before. Although the specific target has not yet been confirmed, it is expected that all of the large financial firms with two or more financial companies will be included. Currently, these groups are investing in financial institutions and non-financial subsidiaries. As a result, capital adequacy standards for preventing excessive capital accumulation are rising, and it seems likely that they will thoroughly manage the stakes held by non-financial subsidiaries in order to curb group expansion using financial customer funds.
Besides, internal control should be further strengthened by establishing a financial group risk management system and selecting a representative company that can influence affiliates.
In the financial sector, the authorities will strengthen regulation and supervision of financial groups, and the consolidation and equity restructuring of large financial firms with complex corporate governance structures such as Samsung, Hanwha, Hyundai Motor and Lotte will become full-fledged. In fact, recently, Samsung Life plans to dispose of 0.47% (KRW 1.7 trillion) of its stake in Samsung Life Insurance and Samsung Fire & Marine Insurance by 2018, when Samsung Electronics plans to cancel its treasury shares. According to the current law on the improvement of the financial industry structure, a financial institution must obtain prior approval of the financial institution in order to hold more than 10% of the voting shares of other companies.
By Cho Eun Guk ceg4204@
[ copyright ⓒ The Digitaltimes ]
The Financial Supervisory Commission will set up a financial group supervisory and innovation team to oversee the financial group`s integrated supervision. The group will consist of a supervisory team that oversees the overall supervision of the financial group, and a governance team that will review the situation in detail over the medium to long term in relation to the financial group governance structure and to carry out an overall evaluation.
Meanwhile, Financial Group Integrated Supervision has become a necessity in 2013 as it causes unfair sales of corporate bonds and CPs of stolen affiliates through financial affiliates, causing damage to financial consumers reaching several trillion won.
However, the failure of some affiliates can be transferred to the group`s overall risk due to insufficient supervision of these financial groups, and risk is concentrated or transferred to financial companies with less regulatory costs in the financial group I have received an indication.
Therefore, the Financial Supervisory Commission will establish an autonomous supervisory system through the launch of the supervisory board of the financial group and strengthen the soundness and stability of the financial system through integrated supervision of financial groups. An official from the Financial Supervisory Commission said, "We will create a framework for integrated supervision, or take charge of the overall supervision team and the target and concrete supervision plan have not been confirmed, and will be confirmed after the launch of the innovation team."
The company plans to announce the target of integrated supervision and the direction of integrated group supervision, which includes major tasks and schedule, from January this month. In addition, the company will release the best regulations by early next year and prepare them for each financial group. In the second half of next year, it will operate an integrated supervision system based on best practices. In addition, in order to enhance the effectiveness of financial supervision, it plans to legislate the integrated supervision of financial groups in the next year.
"The supervision of the financial group is one of the tasks of the new government, and the market has a lot of interest and expectation," stated Choi Jong-koo, chairman of the finance committee on the 8th. "We expect a lot of complicated tasks, "As the organization and manpower are backed up, please push forward more rapidly."
As the government officially launched the Financial Supervisory Commission, the financial groups of Samsung, Hanwha, Hyundai, and Lotte Group will be more regulated and supervised than before. Although the specific target has not yet been confirmed, it is expected that all of the large financial firms with two or more financial companies will be included. Currently, these groups are investing in financial institutions and non-financial subsidiaries. As a result, capital adequacy standards for preventing excessive capital accumulation are rising, and it seems likely that they will thoroughly manage the stakes held by non-financial subsidiaries in order to curb group expansion using financial customer funds.
Besides, internal control should be further strengthened by establishing a financial group risk management system and selecting a representative company that can influence affiliates.
In the financial sector, the authorities will strengthen regulation and supervision of financial groups, and the consolidation and equity restructuring of large financial firms with complex corporate governance structures such as Samsung, Hanwha, Hyundai Motor and Lotte will become full-fledged. In fact, recently, Samsung Life plans to dispose of 0.47% (KRW 1.7 trillion) of its stake in Samsung Life Insurance and Samsung Fire & Marine Insurance by 2018, when Samsung Electronics plans to cancel its treasury shares. According to the current law on the improvement of the financial industry structure, a financial institution must obtain prior approval of the financial institution in order to hold more than 10% of the voting shares of other companies.
By Cho Eun Guk ceg4204@