FSS Launches First Regular Inspection of KakaoBank in Four Years

Regular Inspection of KakaoBank Begins on June 18

The Financial Supervisory Service (FSS), in cooperation with the Korea Deposit Insurance Corporation, will begin a regular inspection of KakaoBank starting on June 18. Over the course of approximately four weeks, the inspection will comprehensively review the bank's overall management, including internal controls and soundness.

This marks the first regular inspection of KakaoBank by the FSS in about four years. KakaoBank, which was launched in 2017, was not subject to regular inspections in its early years in order to allow the bank to establish itself in the market. During its first inspection in 2021, the bank was sanctioned with an institutional warning and a fine for violating the prohibition on credit extensions to major shareholders.

Meanwhile, the FSS plans to conclude its ongoing regular inspection of Shinhan Financial Group and Shinhan Bank, which began at the end of April, as early as this week. Although the inspection was originally scheduled to be completed by the end of last month, the deadline was extended by two weeks. Regular inspections of Hana Financial Group and Hana Bank are expected to take place at the end of the year.