Met with Heads of Financial Supervisory Authorities in Vietnam, Hong Kong, and Indonesia to Urge Interest in 'K-Finance'
Agreed to Strengthen Mutual Cooperation for Korean Financial Firms in Vietnam to Contribute to Economic Cooperation and Trade
Shared Short Selling Regulation Experiences with CEO of Hong Kong Securities and Futures Commission
Agreed to Hold Korea-Indonesia Financial Supervisory Forum in the First Half of Next Year
Lee Bok-hyun, Governor of the Financial Supervisory Service (FSS), visited the heads of financial supervisory authorities in three major East Asian countries?Vietnam, Hong Kong, and Indonesia?to lay the foundation for cooperation on common supervisory issues such as short-selling regulations and sustainable finance. Given that these regions have the highest demand for Korean financial companies' market entry and business expansion, he also requested local supervisory authorities to pay attention to and support Korean financial firms.
Lee Bok-hyun, Governor of the Financial Supervisory Service (center left), is shaking hands with Pham Quang Trung, Deputy Governor of the State Bank of Vietnam (center right), before their meeting on the 11th in Hanoi, Vietnam. (Source: Financial Supervisory Service)
According to the FSS on the 17th, Governor Lee held a meeting on the 11th in Hanoi, Vietnam, with Pham Quang Dzung, Vice Governor of the State Bank of Vietnam, who is responsible for supervising, inspecting, and licensing credit institutions such as banks.
At the meeting, Governor Lee requested the State Bank of Vietnam’s interest in the local licensing of domestic banks that are currently in progress or on hold. He also promised that the FSS would support domestic banks in fully complying with local regulations and contributing to the growth of Vietnam’s economy and financial industry.
In response, Vice Governor Pham Quang Dzung highly evaluated the contribution of Korean banks operating locally to the continuous development of economic cooperation and trade between the two countries and said that close cooperation between the supervisory authorities of both countries had been the foundation for this.
In particular, Governor Lee shared Korea’s experience in successfully overcoming the 1997 financial crisis in relation to the restructuring of the banking industry, a major task for the State Bank of Vietnam. He explained, "Since 2022, a five-year strategy for restructuring the banking industry has been implemented, and from July this year, the revised Credit Institutions Law has been enforced, strengthening the central bank’s authority to resolve insolvent banks." Vice Governor Pham Quang Dzung expressed expectations for close cooperation between the two institutions, including sharing supervisory experiences during Vietnam’s banking industry restructuring process.
On the 14th, Governor Lee held high-level meetings in Hong Kong with Julia Leung, CEO of the Securities and Futures Commission, and Arthur Yuen, Deputy Chief Executive of the Hong Kong Monetary Authority, exchanging views on financial supervisory issues between the two countries.
Governor Lee and CEO Julia Leung had an in-depth exchange of views on the purpose and current status of short-selling regulations in both countries and agreed to mutually cooperate to enhance fairness in capital markets through bilateral cooperation and collaboration within the International Organization of Securities Commissions (IOSCO).
CEO Julia Leung shared detailed experiences of Hong Kong’s short-selling regulatory operations, including the designated securities short-selling system (introduced in 2002), price limits, broker confirmation obligations, and short-selling position reporting. In response, Governor Lee explained the progress of domestic institutional improvements such as the establishment of the short-selling central inspection system (NSDS), mandatory internal control standards for institutional and corporate investors, and integrated short-selling guidelines, all aimed at investor protection and market order establishment.
During the meeting with the Deputy Chief Executive of the Hong Kong Monetary Authority, discussions were held on the direction of global financial regulations following the U.S. presidential election, expanded mutual supervisory cooperation and information exchange regarding Hong Kong-based financial companies, and the roles of the financial authorities of both countries as major regional players.
Both leaders assessed that, given the increasing external uncertainties such as the new U.S. administration’s economic policies and China’s economic conditions, it is necessary to closely analyze and respond to the impacts on their financial markets and industries. They particularly agreed on the need to strengthen mutual communication channels, such as supervisory consultation channels, to effectively improve and prevent violations of domestic laws, including recent cases of naked short-selling by Hong Kong-based financial companies.
Governor Lee emphasized, "As uncertainties in the global economic environment expand due to recent U.S. policy changes and global geopolitical conditions, joint responses between the two institutions are crucial to maintaining regional financial stability and preventing risk transmission."
On the 15th, in Jakarta, Indonesia, Governor Lee held a high-level meeting with Mahendra Siregar, Chairman of the Financial Services Authority (OJK) of Indonesia. This was their second meeting since May last year. Governor Lee conveyed the strong interest of domestic financial companies in the Indonesian financial market and their intention to expand business and investment, requesting continued attention and support from the Indonesian Financial Services Authority. Additionally, an FSS official responsible for Kookmin Bank presented the FSS’s supervisory status of its local subsidiary KBI (formerly Bank Bukopin) directly to the Indonesian Financial Services Authority executives.
In particular, both leaders agreed to hold the Korea-Indonesia Financial Supervisory Forum (tentative name) in the first half of next year to promote closer communication between the authorities and financial industries of both countries and to strengthen financial cooperation and exchanges. This agreement reflects their shared commitment to continue solidifying financial cooperation, which has grown stronger following the 50th anniversary of diplomatic relations last year.
Meanwhile, Governor Lee held meetings with representatives of domestic financial companies pioneering K-Finance on the front lines in Hanoi, Vietnam (on the 11th), and Jakarta, Indonesia (on the 15th). He stated that while further solidifying friendly relations with local supervisory authorities, he would maintain continuous attention to ensure the practical improvement of the business environment for domestic financial companies. He also pledged to maintain close communication with local authorities so that they can smoothly understand domestic circumstances and characteristics during the licensing process of domestic financial companies.
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