On Jan. 15, 2025, SK FSC, SK FSS said large financial investment firms, insurers wishing to partake in the pilot should submit a responsibilities map by Apr. 11, 2025.
In addition, they must implement management measures including internal control until Jul. 2, 2025 from the date of submitting their responsibilities map to SK FSS.
During the pilot implementation period, SK FSS will provide consulting on the responsibilities maps submitted, will not hold financial institutions accountable as per Corporate governance act, even if internal control duties are not perfectly complied.
Plus, where legal violations by employees are identified and redressed on their own, the corresponding disciplinary actions will be reduced/exempted in the pilot period.
Authorities will tighten up internal control in communication with the financial sector.
On Nov. 4, SK FSC,FSS issued pilot status of responsibilities structure.
SK FSC, FSS issued operation status of responsibilities structure pilot, and future plan.
Follows SK FSC Jul. 2024 proposed disciplinary action guidelines, see #219137.
Pilot Operation Status
A total of 9 financial holding companies and 9 banks have submitted their responsibilities map by Oct. 31, 2024, in order to participate in the pilot operation.
Incentives for early introduction will be applied during the pilot operation period from application date until Jan. 2, 2025, but no participating company will be held liable under Corporate governance act even if internal control duties are not fully fulfilled.
Future Plan
The working group under SK FSS will conduct inspections and consultations on legal reasons for revisions and supplementation, the adequacy of responsibility allocation.
In addition to providing feedback to each financial company by the end of 2024.
SK FSC, SK FSS will review the status of preparations by financial investment and insurance sectors, subject to the submission of responsibility structure in Jul. 2025.
Will also examining the expansion of the pilot operation to other financial sectors; continue to communicate with the financial sector, support stable implementation.
Jan. 2025 Second Stage Pilot
On Jan. 15, 2025, SK FSC, SK FSS said large financial investment firms, insurers wishing to partake in the pilot should submit a responsibilities map by Apr. 11, 2025.
In addition, they must implement management measures including internal control until Jul. 2, 2025 from the date of submitting their responsibilities map to SK FSS.
During the pilot implementation period, SK FSS will provide consulting on the responsibilities maps submitted, will not hold financial institutions accountable as per Corporate governance act, even if internal control duties are not perfectly complied.
Plus, where legal violations by employees are identified and redressed on their own, the corresponding disciplinary actions will be reduced/exempted in the pilot period.
Authorities will tighten up internal control in communication with the financial sector.
