Includes special features of this country’s banking system and rules/laws that might impact U.S. business.
Last Published: 8/29/2019

Korea’s financial system consists of banking and non-bank financial institutions.  The Financial Services Commission (FSC: http://www.fsc.go.kr/eng/) and the Financial Supervisory Service (FSS: http://english.fss.or.kr/fss/en/main.jsp), its regulatory arm, are responsible for supervising and examining all banks, including specialized and government-owned banks, as well as securities and insurance companies.  The FSC and the FSS have played a key role in financial restructuring and has strengthened the regulatory and supervisory framework governing the entire financial sector. 

Financial Services and KORUS FTA

With the March 15, 2012, implementation of the KORUS FTA, the U.S. financial service industry can expect new and unprecedented access to the Korean market.  Financial service commitments outlined in the KORUS FTA are some of the most progressive commitments made with any U.S. trade partner to date. The Agreement locks in standards, regulations, and commitments that increase the transparency, predictability, and cost-efficiency for operating in the Korean financial services market.

Some of the financial service commitments inherent in this Agreement include:

  • Language allowing for cross-border data flow and giving U.S.-based “back-office” support to U.S. firms with operations in Korea.  This commitment has a two-year phase-in period, designed to identify, review, and modify data transfer practices to ensure protections in Korea that are no less stringent than those in the U.S.
  • Permitting U.S. financial institutions the ability to establish or acquire financial institutions in Korea and choose the corporate form that best meets their business needs.
  • Encouraging Korea to implement several reforms that would contribute to the transparency of rules and procedures, including regional integration of data processing.

Consult: http://www.uskoreacouncil.org/wp-content/uploads/2014/12/Financial-Services-and-the-U.S.-Korea-FTA.pdf.  

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