RETAIL BANKING | Tony Chua, Korea

Regulator tightens Korean banks' internal control system checks

Frequent financial troubles plaguing lenders prompted FSS to form check list of incidents and inspect firms.

Local banks and financial services companies are expected to undergo much tighter checks on their internal control system, as the nation’s top regulating agency has decided to beef up on-site inspection in the wake of frequent financial incidents.

The Financial Supervisory Service (FSS) said Sunday that it has come up with 10 plans to prevent financial problems in a preemptive manner, which will soon be in place.

The FSS said that it will form a check list of financial incidents by type and inspect financial firms ― banks including savings banks, insurers and securities companies ― by October.

The financial watchdog ordered the companies to report back if they are prepared for their shortcomings after self-inspections. For firms, where financial problems often happen or a large-scaled one occurs, the FSS will sign a memorandum of understanding (MOU) to keep them in check.

Frequent financial troubles have the FSS, headed by governor Kim Jong-chang, on his toes.

View the full story in Korea Times.

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