In February, following comments by South Korean Financial Services Commission vice-chairman, Kim So-young, that the banking industry has an “oligopoly structure”, the commission and the Financial Supervisory Service have established a joint task force to propose reforms to banks’ business conduct and capital buffers, while pursuing a wider liberalisation of the market.
The creation of the new body – known as the Task Force on Improving Management and Operating Practices of Banks and the Banking System – came after Mr Kim highlighted criticisms facing South Korean lenders as they reap greater profits in a rising interest rate environment, in comments reported by the Korea Times.
