A system that can resolve insolvent financial companies in 3 to 4 days, including over a weekend, will be introduced. If the insolvency of a financial company is feared to spread across the entire financial market, related procedures such as a shareholders meeting resolution or a merger review will be omitted to respond swiftly.
The Financial Services Commission announced on the 29th a plan to introduce a “fast resolution regime for financial companies.” It plans to preannounce legislation for amendments to the Act on the Structural Improvement of the Financial Industry and the Depositor Protection Act starting on Nov. 2.
Under the current system, a…