Korea Institute of Finance

Financial Research Brief

26-15 Aug 22, 2026

The Impact of Dollar Strength on the Insurance Industry and Policy Responses

As the KRW/USD exchange rate continues on an upward trajectory after surpassing KRW 1,500, Korean insurers have come under mounting pressure in asset management and risk management amid a surge in currency hedging costs. If the KRW/USD exchange rate remains elevated for an extended period, foreign exchange market volatility could increase further, undermining insurers' profitability, solvency, and liquidity while amplifying risks across their overall business operations. Therefore, Korean insure...

Financial Review Sangyong Han

Assessing Investor Protection for Overseas Securities Investment

Policy Issue in Focus Jeong Doo Lee

Monetary Limits on the Application of the Asymmetric Binding Effect in Financial Dispute Resolution: International Practices and Policy Implications

Policy Issue in Focus KyooBok Lee

FSC Unveils 7th Financial Hub Policy Plan for 2026?2028, August 2026 (FSC)

News Briefs KIF

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

Corporate Lending and Productive Finance ― Focusing on Firms' Productivity and Resource Allocation Efficiency ―

This paper analyzes the extent to which the unusually rapid increase in domestic corporate lending over the past decade (2015?2024) has contributed to productivity and the efficiency of capital allocation. To this end, it (1) identifies how firms have utilized external funds raised through financial institution loans, and (2) examines how such loan usage has affected productivity and resource allocation efficiency at both the firm and industry levels. Based on these findings, the paper presents...

20260520 Yong-Sang Shyn