Financial Services Commission Cancels Registrations of Five Lending Companies

The Financial Services Commission has imposed sanctions, including the cancellation of registrations for five lending companies. An additional 17 companies are scheduled to face sanctions in the future. A large-scale overhaul is expected.

According to financial authorities on January 13, the Financial Services Commission recently issued preliminary notifications of registration cancellation to five companies: Asset Management K Lending, Hana AMC Lending, Kookmin AMC Financial Lending, Goldrich Consulting Lending, and JLK Partners Financial Lending. This is due to the inability to confirm their business locations.

This is the first time since August 2021 that the Financial Services Commission has decided to cancel lending business registrations.

This measure follows the results of a comprehensive inspection of approximately 900 lending companies conducted by the Financial Supervisory Service ahead of the enforcement of the revised Lending Business Act in July of last year.

The Financial Supervisory Service is currently imposing sanctions on 42 companies. Last month, it issued institutional warnings, cautions, and fines to 20 companies.

The reasons include violations of the total asset limit regulation (total assets exceeding 10 times the equity capital) and failure to submit business reports.

For the remaining 10 or so companies, it appears that the Financial Services Commission will impose sanctions at the level of business suspension following deliberation.