Korea Institute of Finance

Financial Research Brief

25-13 Jun 28, 2025

The 2022 UK Government Bond Market Crisis: Background and Implications

The 2022 turmoil in the UK government bond market can be attributed to two direct causes: i) heightened sensitivity of government bond yields to fiscal soundness concerns compared to previous periods, and ii) the substantial reliance of defined benefit (DB) pension funds on liability-driven investment (LDI) strategies. These two factors are fundamentally rooted in demographic structural changes. As demographic changes have led to sustained increases in fiscal expenditures related to healthcare a...

Financial Review Minkee Song

The Impact of External Economic Conditions on Consumer Prices

Policy Issue in Focus Min Chang

Overview and Outlook of New Household Loans by Sector in Korea

Policy Issue in Focus Hyun Yeol Kim

A Study on Soundness Management of MG Community Credit Cooperatives: Asset Portfolio Analysis

Policy Issue in Focus Tae-Rog Oh

2025 Korea Fintech Week from November 26 to 28, June 2025 (FSC)

News Briefs KIF

The Impact of Climate Change Physical Risks on the Insurance Industry and Tasks Ahead

This study empirically investigates the impact of climate change?specifically extreme precipitation?on the financial performance in the Korean insurance industry. Using climate projections for the period 2021 to 2040 under four representative climate scenarios provided by the Intergovernmental Panel on Climate Change (IPCC), we estimate potential damages from natural disasters and project claims paid and loss ratio for three major policy types: crop insurance, livestock disaster insurance, and...

20250627 Sukho Lee, Sangyong Han

Domestic and International Cases of Green FinTech and Policy Implications

The Korean government has been actively advancing a range of policies aimed at achieving net-zero carbon emissions by 2050. In line with this national agenda, financial authorities have extended support to corporations and are in the process of reforming the disclosure system to facilitate a smooth transition to a low-carbon economy. Within this context, green fintech emerges as a strategic sector that can harness digital technologies and high-quality data to deliver innovative climate risk solu...

20250421 Jeong Ho Suh

Alternative Credit Scoring Regulatory Framework: Comparison Between Indonesia and Korea

The report focuses on the alternative credit scoring (ACS) system, a topic selected through discussions between both countries. It examines the current status and policy challenges of each nation and derives implications for regulatory improvements in Indonesia. The study findings indicate that South Korea has established an innovative framework for ACS, with effectively managed regulations on financial consumer protection and data governance. In contrast, while the demand for ACS in Indonesia i...

20250416 Sanjung Purnama Budiarjo, Chun Sung Jun

Leveraging South Korea's Strategic Approach: Developing a Robust NPL Resolution Framework for Indonesia

The study focused on the Non-Performing Loan (NPL) system, a topic selected through discussions between both countries. During the research, South Korea shared its experience in stabilizing the financial market through the establishment of a government-led Asset Management Company (AMC), the issuance of Asset-Backed Securities (ABS), and active participation of the private sector. In contrast, Indonesia faces challenges in NPL management, leading to a decline in financial institutions' lending c...

20250416 F. Ziesco Yoga Sulistyo, Lee Kang San

Regulations of Electronic Financial Transactions in Major Foreign Countries and Their Implications: Focused on Business Classification and Key Concepts

Since its enactment in 2006, the Electronic Financial Transactions Act in Korea has classified electronic financial and auxiliary businesses into seven types and regulated them accordingly. It has also explicitly defined key terms?such as payment methods, electronic devices, and access media?used for classification. Meanwhile, major foreign countries have continuously updated and improved their regulatory systems, simplifying the number of industries based on key functions rather than payment ...

20250414 Christopher Byungho Suh, JEONG DOO LEE, Tae-Rog Oh, YongKi Hong

Understanding Youth Financial Policy

So far, Korea's youth policies, except for some employment policies, are generally considered to be ineffective, and youth policies related to finance in particular are evaluated to be ineffective. This is largely due to the fact that Korean youth have lower assets and income than other age groups, so they have a high debt burden, tend to increase real estate investment through financial debt, and especially, low-income youths often use credit loans to secure monthly rent deposits. Since youth f...

20250402 Dong-Hwan Kim