Regulatory Alerts2015-12-13
Amendments Proposed to Improve the Oversight of Moneylenders
The Financial Services Commission proposed amendments to the Enforcement Decree of the Act on Registration of Credit Business, etc., and Protection of Finance Users to enhance moneylender oversight. The revisions mandate stricter registration and supervision protocols while capping the asset-capital ratio at 10 to prevent excessive leverage. Additionally, eligible acquirers of moneylender loans are restricted exclusively to financial firms and other regulated entities.
Amendments Proposed to Improve the Oversight of Moneylenders
Date
2015-12-13
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Amendments Proposed to Improve the Oversight of Moneylenders, Nov. 25, 2015_.pdf (fileSize: 151KB)
The Financial Services Commission announced on November 25, 2015, newly proposed amendments to the Enforcement Decree of the Act on Registration of Credit Business, etc., and Protection of Finance Users. The proposed amendments provide for enhanced registration and supervision of moneylenders, caps moneylender’s asset-capital ratio at 10 (1,000%) to prevent leveraged growth, and limits buyers eligible to acquire moneylenders’ loans to financial firms and other regulated entities.
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International Affairs Department(Financial Hub Korea) International Cooperation Team
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+82-2-3145-7895