On May 24, 2024, SK FSS finalized the extension of the Administrative guidance on measures to manage the limit of large loans in the mutual finance sector for 1 year.
The new validity period of the guidance will be from May 24, 2024 to May 23, 2025.
Document dated May 24, 2024, received from SK FSS May 27, summarized on May 29.
In Mar. 2025, SK FSS proposed extending guide on large-amount credit, see #247645.
On Mar. 26, SK FSS proposed extending the guide on large loan limits.
SK FSS proposed extending the validity of the Administrative guidance on measures to manage the limit of large loans in the mutual finance sector, for another year.
Follows SK FSS May 2022 extended validity of measures by one year, see #138923.
Extension
For mutual finance entities with most recent FY-end gross assets over KRW 100bn.
A large loan refers to a single-borrower loan whose amount exceeds 10% of the entity's equity capital or 0.5% of total assets at the most recent fiscal year-end.
From Jul. 1, 2021, if the total amount of large loans exceeds five times the mutual financial institution's equity capital or 25% of its total assets at immediately preceding FY-end, the institution will not permitted to handle any additional large loans.
In addition, the mutual financial institution must have reduced the amount by which it exceeded the limit as of end-Jun. 2021, to 100% of that amount by the end of 2024.
Consultation Period
Comments shall be submitted by Apr. 15, 2024, for the planned extension of the guidance's validity for one year from May 24, 2024 until May 23, 2025.
May 24, 2024 Extension Finalized
On May 24, 2024, SK FSS finalized the extension of the Administrative guidance on measures to manage the limit of large loans in the mutual finance sector for 1 year.
The new validity period of the guidance will be from May 24, 2024 to May 23, 2025.
Document dated May 24, 2024, received from SK FSS May 27, summarized on May 29.
In Mar. 2025, SK FSS proposed extending guide on large-amount credit, see #247645.
