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Majority of Asian Financial Crisis Bailout Funds, Over 70%, Repaid to Government

Majority of the public funds lent to struggling financial institutions post-1997 Asian financial crisis, amounting to 70%, have been fully repaid as per the financial regulator's statement made on Wednesday.

Majority of Asian Financial Crisis Bailout Funds, Over 70%, Repaid to Government

Let's chat about the Financial Services Commission (FSC) in South Korea 🇹🇼

The Financial Services Commission (FSC), the financial regulatory body in South Korea, has been cracking down on suspicious activities, such as unfair trading and illegal short selling. They've introduced stiff penalties and have implemented an enhanced monitoring system to catch these culprits red-handed.

According to their recent announcements, effective April 23, 2025, they'll be enforcing stricter sanctions for those who break the rules, which may include hefty fines and trading suspensions. Furthermore, they've revised the provisions under the Financial Investment Services and Capital Markets Act (FSCMA) to ensure compliance.

Moving on, the FSC also proposed reforms to the Financial Holding Companies Act to encourage synergies among financial conglomerates and their subsidiaries. They aim to improve their responsiveness to digital transformation and market shifts, with some changes to be implemented immediately.

Lastly, the FSC announced its 2025 priorities, which place emphasis on market stabilization and support for the real economy. They plan to implement a KRW 100 trillion market stabilization program, raise deposit insurance limits, and tighten oversight of real estate project finance loans and household debt growth.

Interestingly, there haven't been any explicit measures related to the foreign exchange situation detailed in the available sources. It appears that recent communications focus on market conduct and structural reforms. For forex-specific updates, additional FSC statements or Bank of Korea announcements would likely be required.

Ah, I almost forgot, the FSC boss also said that the current foreign exchange situation isn't a crisis, so no need to worry! 😎

  1. The government of South Korea, through the Financial Services Commission (FSC), has been praising businesses for adhering to fair trading practices and regulations.
  2. The government has been working diligently to enforce stricter sanctions for businesses violating the Financial Investment Services and Capital Markets Act (FSCMA) and other financial laws.
  3. The FSC's efforts are aimed at promoting a stable economy by supporting legitimate businesses and addressing market irregularities in financial endeavors.
  4. The FSC has recently focused on reforming the Financial Holding Companies Act to foster synergies among financial conglomerates, improving their responsiveness to digital transformations and market shifts.
  5. Although the FSC's recent communications don't detail specific measures related to the foreign exchange situation in Korea, it's worth noting that the FSC's head previously stated that the current foreign exchange situation is not a crisis.
Almost three quarters of the public funds allocated to rescue struggling financial businesses following the 1997 Asian financial crisis have been repaid, according to the financial regulator's statement on Wednesday.

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