The FSS - Financial Supervisory Authority accomplishes capital market management, customer protection, and other regulation as delegated by the FSC.
The FSS – Financial Supervisory Authority was established on the 2nd January, 1999. The Korea’s fully integrated supervisory authority under the Act on the Establishment of Financial Supervisory Organizations (the “Establishment Act”). This act was approved by the National Assembly on December 29, 1997. The
Establishment Act set the beginning of the FSS functioning as a specially legislated quasi-government supervisory authority. Moreover, the act charged FSS with the powers of financial supervision across the entire financial industry. Before the establishment of the Korean Financial Supervisory Authority, the markets were overseen by four distinct industry-based authorities. These authorities had the Korean financial ministry carrying out significant overarching powers.
Duties of FSS – Financial Supervisory Authority
For the banking industry control and supervision, the Office of Banking Supervision under the Bank of Korea was performing the inspection of commercial banks and foreign bank branches. Following the same pattern, securities sector supervision was carried out by the Securities Supervisory Board and the finance ministry. Lastly, the insurance sector supervision was directed by the Insurance Supervisory Board and the finance ministry.
Currently, as Korean integrated supervisory authority, the Financial Supervisory Authority carries out the prudential supervision of banks, nonbank financial companies, financial investment services providers, and insurance companies.
FSS safety and soundness guidelines
The regulatory body strives to assure they are following the certain safety and soundness guidelines, morals, and requirements. In addition to abovementioned, the Financial Supervisory Authority accomplishes capital market management, customer protection, and other regulation and enforcement activities as delegated by the FSC.
The FSS carries out the following activities in South Korea financial markets:
- Prudential supervision
- Capital markets supervision (this includes Corporate Disclosure, Securities Market, Investigation of Securities Violation and Accounting)
- Consumer Protection