Korea Ramps Up Private Credit Scrutiny to Gauge Vulnerabilities

South Korea’s financial watchdog is reviewing all sectors under its oversight for exposure to overseas private credit, according to people familiar with the matter, expanding its push to gauge risks after a string of scares in the asset class globally.

The Financial Supervisory Service is surveying and compiling data from the sectors, including non-bank institutions and so-called “mutual finance” firms that include credit unions, the people said, declining to be identified. The FSS’s previous reviews on private credit exposure were limited to certain financial sectors such as insurers and securities firms, but the expansion will allow authorities to better understand the landscape, the people said.