The Financial Supervisory Service unveiled three key priorities for overseeing the financial investment sector this year: dramatically strengthening consumer protection throughout the entire lifecycle of financial products, reinforcing productive finance infrastructure, and preemptive risk management. Inspection activities will align with these supervisory directions, focusing on swift and agile investigations into investor harm and expanded consulting support to strengthen internal controls.
The FSS held its "2026 Financial Investment Sector Supervisory Briefing" on the 24th to outline these supervisory and inspection priorities. In his opening remarks, FSS Senior Deputy Governor Seo Jae-wan stated, "This year, we will pursue fundamental reform of the industry's structure through a paradigm shift in financial supervision toward preventive investor protection." Approximately 290 attendees participated in the briefing held at FSS headquarters, including representatives from securities firms, asset management companies, real estate trust companies, and the Korea Financial Investment Association.
Examining the specific supervisory directions, the FSS plans to first ensure financial investment companies thoroughly assess risks from the investor's perspective before communicating them to customers, while establishing an intensive review system for high-risk products. The goal is to prevent mis-selling by closely examining internal control practices at each stage of product planning, manufacturing, and sales.
To promote productive finance and venture capital, the FSS will actively support the stable launch of new systems such as Business Development Companies and the National Growth Fund, as well as new types of market infrastructure institutions including fractional investment platforms and unlisted stock exchanges.
Enhancing the soundness and liquidity risk management capabilities of financial investment companies is also a key supervisory priority. As expansion in promissory note issuance and Integrated Money Account funding is expected, the FSS will improve the effectiveness of risk management systems at comprehensive financial investment business entities. The FSS specifically announced plans to inspect Prime Brokerage Service operations at these entities. Thorough reviews will also be conducted on the delayed implementation of real estate project financing exposure reductions.
Finally, to strengthen preventive investor protection, the FSS will respond firmly through "swift and agile inspections" against illegal and improper conduct occurring at investor touchpoints, as well as internal control failures. Planned inspections include reviews of product sales process appropriateness at key branch offices linked to headquarters' internal control practices, examinations of self-dealing in real estate PF transactions, and checks on unsound business practices by quasi-investment advisory firms.
The FSS will also actively expand consulting inspections to help companies autonomously and proactively strengthen their investor protection systems. Regarding internal controls, the FSS Chairman will communicate key compliance matters, including major disciplinary cases, to the industry through "CEO Letters."