Business · Companies · 57 mins ago
Researcher urges broader checks on major shareholders of financial firms
A Korea Institute of Finance researcher has called for broader checks on people seeking major stakes in financial companies in South Korea.
Current checks focus on legal violations and financial soundness, he said, leaving gaps in assessing a shareholder’s reputation, experience and ability to oversee a company.
He says past compliance alone cannot ensure sound management of a financial firm.
The proposal comes as fintech and cryptocurrency businesses increasingly seek to enter financial services, bringing risks such as conflicts of interest and technology problems.
The researcher wants similar standards for traditional and new financial businesses, so risks are assessed consistently and are less likely to spread through the financial sector.
He also says safeguards are needed to prevent unclear standards or excessive regulator discretion from discouraging new entrants and industry growth.
A Korea Institute of Finance researcher has urged wider checks on major shareholders of financial firms, including their reputation, experience and expertise.
The proposal aims to address risks that existing checks may miss as fintech and virtual-asset businesses enter finance.
The researcher said South Korea’s current screening focuses on legal violations and financial soundness.
The report cited the United States, Britain and Singapore as countries that also assess major shareholders’ reputation and experience.
The researcher also called for safeguards against unclear standards or excessive regulatory discretion that could deter new entrants and growth.
- Who
- Lee Si-eon, a research fellow at the Korea Institute of Finance.
- What
- He proposed expanding the eligibility review of major shareholders of financial firms to include qualitative criteria such as reputation, experience and expertise.
- When
- The report was presented on November 7, 2026.
- Where
- South Korea.
- Why
- New entrants such as fintech and virtual-asset businesses may bring risks that current checks do not catch, and those risks could spread into the financial sector.
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- Report date
- November 7, 2026
- Researcher
- Lee Si-eon
- Current South Korean checks
- Focus on legal violations and financial soundness
- Countries cited
- United States, Britain and Singapore
- Proposed criteria
- Reputation, experience and expertise
1 source
What people are saying
The fact that there has been no past illegal conduct alone is not enough to guarantee the sound management of a financial company.
Safeguards should also be put in place so that unclear qualitative criteria or excessive discretion by supervisory authorities do not hinder new entry and industry growth.