Announcement of supervision status of Financial Supervisory Service staff in charge of KB
Hong Kong establishes channel to prevent ‘unleveraged short selling’
[서울=뉴시스] Reporter Park Eun-bi = Financial Supervisory Service Chairman Lee Bok-hyeon visited the Indonesian Financial Supervisory Office (OJK) and conveyed the supervisory intention to induce sound management by strengthening internal control and risk management capabilities related to the poor operation of KB Kookmin Bank‘s Indonesian subsidiary KBI (formerly Bukopin Bank). did it In Hong Kong, it was decided to operate a supervisory consultation channel to prevent unleveraged short selling by Hong Kong-based financial companies entering the country.
According to the Financial Supervisory Service on the 17th, Director Lee visited Jakarta, Indonesia on the 15th and had a meeting with Mahendra Sirega, the head of the Indonesian Financial Supervisory Service. It has been 6 months since last May.
Director Lee had a Financial Supervisory Service official in charge of Kookmin Bank accompany him to the interview and present the status of the Financial Supervisory Service’s supervision of KBI, a local subsidiary, in front of executives at the Indonesian Financial Supervisory Service. The purpose is to convey the Korean financial authorities’ supervisory will to encourage sound local management by strengthening internal control and risk management capabilities as domestic financial companies expand their presence in the local market.
Previously, at a press conference right after the Hong Kong IR on the 13th, Director Lee said, “(KBI) individual bank issues also need to be resolved.” He said, “We have made a lot of new paid-in capital increase, but if there is any way to deal with things that are still not sorted out, we have quite strict supervision over the soundness of the Korean parent company, so if you tell us anything you are concerned about, we will look after it together and supervise each other.” “I’m hoping there might be something that can alleviate the burden,” he said.
He conveyed the high interest of domestic financial companies in the Indonesian financial market and their will to expand sales and investment, and also requested continued interest and support from the Indonesian Financial Supervisory Authority. The two countries plan to hold the Korea-Indonesia Financial Supervisory Forum (tentative name) in the first half of next year.
Earlier, on the 11th, Director Lee met with Deputy Governor of the Central Bank of Vietnam Pham Quang Dung and requested the Central Bank of Vietnam’s interest in the local approval of domestic banks that are in progress or pending, while the Financial Supervisory Service also requested that domestic banks faithfully comply with local laws and regulations. He promised to provide support to contribute to the growth of Vietnam’s economy and financial industry.
In addition, on the 14th, a high-level meeting was held with Julia Leong, Chairman of the Hong Kong Securities and Futures Commission (SFC), and Arthur, Deputy Governor of the United Nations Monetary Authority (HKMA), and exchanged opinions on pending financial supervision issues.
SFC expressed its willingness to cooperate with Korea’s investigation into illegal short selling of global corporate finance (IB) companies, and also introduced Hong Kong’s short selling investigation standards and cases. In addition, the HKMA recently formed a consensus on the need to strengthen mutual communication, such as operating a supervisory consultation channel, for effective post-improvement and proactive prevention of violations of domestic laws, such as unleveraged short selling by Hong Kong-based financial companies.
In addition, as external uncertainties such as the new U.S. government’s economic policy and China’s economic situation are increasing, they shared opinions that there is a need to closely analyze and respond to the impact on the financial markets and industries between the two countries. We believe that the momentum for promoting global financial regulations such as environment, society, and governance (ESG) and Basel III may decline significantly after the US presidential election, and we plan to promote a supervisory cooperation workshop in the first quarter of next year to ensure consistent implementation of global supervisory tasks.
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