FSS: "Small and Medium Financial Firms Must Proactively Prepare for Potential Deterioration"

The Financial Supervisory Service (FSS) announced that it plans to continue focusing on the soundness management and crisis response capabilities of small and medium-sized financial companies this year as well.

On the afternoon of the 5th, the FSS held the '2025 Financial Supervisory Business Briefing for the Small and Medium Financial Sector' at its headquarters in Yeouido, Seoul, and urged small and medium financial companies to make more thorough risk management and proactive efforts to enhance soundness, considering the difficult management conditions such as ongoing internal and external uncertainties.

Han-gu, Deputy Director of the FSS, requested, "We ask small and medium-sized financial companies to promptly dispose of non-performing assets through light auctions and voluntary sales, and to accumulate sufficient levels of reserves to proactively prepare for the possibility of non-performing asset expansion."

Deputy Director Han added, "Please faithfully fulfill the inherent role of the small and medium financial sector, such as providing funds to local residents and small business owners," and urged, "Considering the difficulties caused by the expansion of high-risk asset handling such as PF loans, please diligently use the capacity secured through the disposal of non-performing assets to strengthen the core function of fund supply."

He continued, "In a situation where financial market volatility has increased, thorough internal control is necessary to prevent financial accidents such as illegal or unfair loans and embezzlement from occurring and causing market instability," and emphasized, "Thorough internal control, including checking compliance with work procedures especially in vulnerable sectors, is important."

About 230 people attended the event, including executives and employees from savings banks, mutual finance, specialized credit finance companies, VAN (Value Added Network) companies, and related central associations and organizations.