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The head of the Financial Services Commission said Wednesday that his agency will ease regulations that restrict the ownership of banks by non-banking businesses. Under the relaxed regulations, non-banking businesses will be allowed to own banks through private equity funds.
The move will pave the way for conglomerates to indirectly own banks via funds when state-own banks like the Korea Development Bank and Woori Financial Group are privatized.
FSC Chairman Jun Kwang-woo said in an international financial conference on Wednesday that the agency will gradually allow non-banking businesses to own stakes in banks through private equity funds and pension funds.
Currently, if industrial capital from non-banking businesses accounts for more than 10 percent of a private equity fund, the fund cannot hold more than a 4 percent stake in a bank. The FSC plans to ease the rule by raising the industrial capital ceiling to 15 percent or more.
Chairman Jun said that the FSC will adopt a European method of examining and supervising each non-banking business on its qualifications to own banks. Thus, while easing regulations on bank ownership, the nation's top financial regulator will at the same time strengthen post-supervision and inspection. Jun noted, however, that the deregulation does not mean conglomerates will control the nation's banks.
(englishnews@chosun.com )
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