The Bank of Korea has initiated its first survey targeting 31 financial institutions, including 18 banks and 13 brokerages. The review, which commenced on October 23, aims to assess how these firms would manage risks associated with potential market volatility or operational failures.
The central bank is evaluating the impact of scenarios such as a major cryptocurrency exchange shutdown, a prolonged market downturn, or significant losses incurred by other financial entities. The survey also covers internal data, including staffing, budgets, and specific investments made by these firms in domestic and international crypto companies.
This regulatory move coincides with ongoing stablecoin testing by South Korean firms. KB Financial Group finished a pilot for a won-denominated stablecoin in May, while Kakao Pay and KakaoBank began exploring digital asset infrastructure with Fireblocks in September.
Simultaneously, the Financial Services Commission is tightening cybersecurity standards. Following the discovery of security deficiencies at 130 out of 555 financial companies, regulators proposed more frequent vulnerability assessments and increased executive accountability for security incidents.
