FSS holds meeting to support financial firms' overseas expansion; headquarters-level monitoring of IT, AML compliance stressed
The Financial Supervisory Service called together overseas business managers from major financial firms Wednesday to urge stronger risk management, citing a tightening of local supervisory requirements related to information technology and anti-money laundering compliance.
The FSS held a meeting at the Korea Federation of Enterprises in Yeouido, Seoul, chaired by Senior Deputy Governor Lee Se-hun, to discuss key issues and challenges facing Korean financial firms operating abroad.
"Amid growing uncertainty in the global financial environment — including heightened interest rate and exchange rate volatility and persistent geopolitical risks — financial firms need to focus on qualitative improvement and stronger risk management across their overseas business strategies," Lee said.
He particularly stressed that as IT and AML supervision, inspections and sanctions intensify in the United States and Southeast Asian countries where Korean financial firms are most active, headquarters-level monitoring and preemptive responses are critical.
As of the end of September last year, Korean financial firms operated 475 overseas offices across 46 countries, comprising 246 local subsidiaries, 119 representative offices and 110 branches. The United States had the largest presence, with 64 offices.
The FSS said it communicates with financial regulators in key markets through its overseas office network and other cooperative channels to help domestic firms navigate shifting regulatory environments. It is also working to establish direct communication channels between Korean financial firms and foreign regulators through seminars that invite overseas supervisory authorities.
Global business executives from 10 financial firms attended the meeting and raised concerns and requests related to licensing and local operations in Southeast Asia and other key markets. They pledged close cooperation, including the prompt sharing of local trends and major issues identified through their overseas operations.
The FSS said it plans to hold meetings and briefings regularly to support financial firms' overseas expansion and will continue gathering feedback from the field through working-level consultative bodies.
ehkim@heraldcorp.com
