Korea Institute of Finance

Financial Research Brief

26-16 Sep 5, 2026

Policy Priorities for Establishing AI Governance in Financial Institutions

To ensure the safe deployment of AI in finance, supervisory authorities across jurisdictions have placed a top priority on robust AI governance for financial institutions. AI governance is defined as an accountability framework that sets out organization-wide roles and responsibilities for the planning, development, operation, and control of AI systems. Korea has also recently introduced requirements to strengthen AI governance, including those set out in its AI Guidelines for the Financial Sect...

Financial Review Jeong Ho Suh

Slowdown in the Corporate Bond Market and Inflows into Short-Term Money Markets: Potential Risks and Policy Responses

Policy Issue in Focus Namjong Kim

Financial Consumer Protection in the Age of AI Shopping Agents

Policy Issue in Focus Taehoon Youn

Policy Priorities for Advancing Capital Market-Led Corporate Restructuring

Policy Issue in Focus Jun-Tae Park

Korea Overhauls Merger Valuation Rules to Protect Minority Shareholders, Sep 2026 (FSC)

News Briefs KIF

Strengthening the Competitiveness of Japan's Regional Banks: Institutional Reforms and Implications

Korea's regional banks face weakening business foundations due to low birth rates, population decline, Seoul-area concentration, and declining local industries. Japan, facing similar problems earlier, expanded banks' ancillary businesses and subsidiaries into regional development and sustainability fields through its 2021 Banking Act amendment, giving rise to models such as regional trading companies, renewable energy, talent placement, and digital transformation. Japan also enacted a special an...

20260824 Byungyoon Lee, Seok Ki Kim, Haesik Park

An Analysis of the Bank?Firm Lending Bipartite Network in Korea

This study constructs bank?firm lending relationships in Korea as a bipartite network and analyzes the indirect interconnections among banks formed through common borrowers. While previous studies on financial networks in Korea have mainly focused on one-mode networks, this study identifies interbank interconnectedness arising from corporate lending relationships. The results show that multiple lending relationships, in which more than one bank provides loans to the same firm, are widespread in...

20260807 Jean Lim

The Role of Shared Growth and Inclusive Finance

Can inclusive finance generate a virtuous cycle of shared growth by simultaneously improving economic growth and income distribution? According to the World Bank (2020) and the Organisation for Economic Co-operation and Development (2019, 2023), constraints on financial access exist in both developing and advanced economies, posing a threat to economic growth. In advanced economies in particular, while average financial accessibility has improved, polarization in financial access has intensified...

20260529 Jabonn Kim

Dividend Payment Frequency and Systematic Risk (Beta): Evidence from Korean Listed Firm

This study empirically examines the relationship between dividend payment frequency and the systematic risk (beta coefficient) of Korean listed firms. Using an unbalanced panel dataset comprising 10,715 firm-year observations for 1,640 non-financial firms listed on KOSPI and KOSDAQ from 2010 to 2024, we employ panel OLS regression alongside quasi-experimental approaches including difference-in-differences (DID) and propensity score matching (PSM). The analytical framework draws on information si...

20260529 Taiki Lee, Woojin Kim

The Potential Impact of Stablecoin Adoption on the Share of Credit Card Payments

This report analyzes the expected adoption and usage of KRW-denominated stablecoins and their potential impact on existing payment instruments, if introduced as a new means of payment in Korea’s retail payment market. To this end, the study conducts simulations using a discrete choice model, varying the magnitude of discount promotions and merchant acceptance rates from 10% to 90%. The results suggest that a merchant acceptance rate of around 70% or higher would be necessary for stablecoins to ...

20260528 Jinsoo Bae

The Introduction of the Responsibilities Map: Effects and Policy Recommendations

Designed to establish clear accountability within financial institutions, the Responsibilities Map aims to fortify internal control systems and elevate trust in the Korean financial sector. To ensure the framework's successful institutionalization, this report identifies key areas for improvement based on insights from compliance officers across banks and bank holding companies. The study indicates that while the initiative has yielded meaningful changes?such as elevating organizational awaren...

20260521 Jeong Ho Suh