The Financial Supervisory Service's budget for next year has been set at 448.9 billion won, an increase of 33 billion won from this year. 84% of the budget increase comes from supervision contributions received from financial institutions.
According to the financial sector on the 26th, the Financial Services Commission recently delivered the 2025 budget proposal with this content to the FSS. The FSS's budget for next year is 448.9 billion won, representing a 7.1% increase compared to this year (415.8 billion won). This is the largest increase in terms of amount in the last five years.
The FSS's budget was cut for two consecutive years after the hiring corruption incident in 2017, with decreases of 1.1% in 2018 and 1.9% in 2019. It continued to increase for three consecutive years starting in 2020 (2.1%), 2021 (0.8%), and 2022 (8.6%), before essentially freezing in 2023 (-0.1%), and this year it has returned to a growth trend.
The FSS's budget primarily comes from contributions received from financial institutions and corporations. The supervision contributions have been set at 330.8 billion won, an increase of 27.9 billion won from this year. Supervision contributions are a type of fee received by the FSS in exchange for providing supervisory services to financial companies. 85% of the budget increase has been covered by supervision contributions.
For the issuance contribution, which is a part of the FSS budget, it has been set at 105.8 billion won, similar to this year. The issuance contribution is the money paid by all corporations that issue securities, such as stocks or bonds, when they submit their securities registration statement to the FSS.
Among the budget proposal for the FSS next year, personnel expenses have been determined at 257.1 billion won, a slight increase from this year (246.5 billion won). The increase in personnel expenses is due to the addition of 30 employees to the FSS next year. Approximately 99.3 billion won has also been allocated for expenses. Expenses include welfare costs, travel costs, reward expenses, and operational costs. The total amount for personnel expenses and expenses is 356.4 billion won, which accounts for 79% of the total budget for next year.
The FSS has decided to collect 27.9 billion won more in supervision contributions than this year, which will increase the burden on financial companies. In particular, the burden is expected to increase for large banks and insurers, which account for most of the supervision contributions. The FSS notifies financial companies of the amount of contribution, calculation basis, and payment methods by March 15 each year.