[비즈한국] Toss (Viva Republica) has been designated as a financial conglomerate, marking the first time a Big Tech firm has received this classification. The designation follows Toss Securities' asset growth, which met the requirements for a financial conglomerate. Following this designation, Toss will be subject to strict management and oversight regarding internal controls, risk management, capital adequacy, and internal transactions. As Big Tech companies have recently faced ongoing IT failures and financial incidents, the designation of Toss as a financial conglomerate is expected to further strengthen group-level risk management and responsible management among Big Tech financial firms.
The Financial Services Commission (FSC) announced the 2026 list of financial conglomerates on the 15th. Eight groups were designated this year, ranked by their total financial assets: Samsung (515 trillion won), Hanwha (168 trillion won), Mirae Asset (156 trillion won), Kyobo (149 trillion won), Hyundai Motor (93 trillion won), DB (86 trillion won), Daou Kiwoom (78 trillion won), and Toss (41 trillion won). The number of financial companies affiliated with these eight groups totals 351.
Toss drew attention as the first Big Tech firm to be designated since the system's introduction. It is also the first new group designated in four years, following Daou Kiwoom in 2022. As of the end of 2025, Toss's primary business sector, deposit and lending (banking), held 33 trillion won in assets, while its non-primary sector, financial investment (securities), held 7 trillion won. The criteria were met as the total assets of Toss Securities more than doubled compared to 2024 (3 trillion won).
A financial conglomerate is designated if it meets all of the following requirements: engaging in at least two business sectors among deposit/lending, insurance, and financial investment; having at least one company registered with or licensed by the FSC; and possessing domestic financial company assets within the group totaling at least 5 trillion won. However, if the assets of the non-primary sector are less than 5 trillion won, it is excluded from the designation. Kakao, for example, failed to meet the asset threshold in its non-primary sectors.
Once designated as a financial conglomerate, a firm is subject to various management and oversight standards under relevant laws. First, it must determine a representative financial company based on capital relationships, assets, and equity, and report it to the Financial Supervisory Service (FSS) within one month of the designation date. Internally, the group must establish policies for internal control and risk management, and its reporting and disclosure obligations regarding key information relevant to financial consumers will be strengthened.
Financial soundness management standards will also become more rigorous. Internal transactions worth 5 billion won or more, or 5% of equity capital, must undergo board approval. To prevent the contagion of insolvency between financial affiliates, the group must meet a capital adequacy ratio requirement (100% or higher). In this process, authorities will conduct additional risk assessments to add risk capital to the required capital, meaning risk factors such as affiliate risks, governance, and internal controls will be monitored periodically.
The group will also undergo a risk management assessment by financial authorities every three years. This involves a qualitative evaluation across five areas: internal control systems, risk management systems, capital adequacy, risk concentration and internal transactions, and ownership structure and risk contagion. Groups are graded from Grade 1 (excellent) to Grade 5 (danger). If the capital adequacy ratio falls below 100% or if the group receives a Grade 4 or lower in the risk management assessment, it must submit a management improvement plan to the financial authorities.
With this designation, financial authorities are expected to begin full-scale management and oversight of Big Tech's internal control systems and governance. The FSC stated, "This designation will serve as an opportunity for Big Tech financial groups to gradually strengthen risk management and oversight at the group level." Just last June, authorities summoned the Chief Information Officers (CIOs) of Naver Financial, Kakao, Kakao Mobility, Kakao Pay, Toss, and Toss Payments to order the strengthening of IT internal control systems following platform IT failures.
In fact, the need for stronger internal controls has been raised due to recurring financial incidents at Toss, both large and small. On the 14th, ahead of the financial conglomerate designation, the FSS disclosed sanctions against Toss Securities for violations of the Capital Markets Act and the Electronic Financial Transactions Act. According to the FSS, Toss Securities changed its electronic financial transaction terms four times between August 2021 and July 2024 but reported them late or failed to notify the authorities. It was also discovered that they had been concurrently operating an electronic funds transfer business since January 2021 but only reported it to the FSC nine months later. Financial investment firms are required to report to authorities seven days before engaging in other financial businesses. The FSS imposed an 8.4 million won fine on Toss Securities.
There have also been instances of sanctions due to violations of the Governance Act. Last March, the FSS uncovered cases where Toss Securities failed to disclose or report the appointment of executives in March 2021, and cases where executives held concurrent positions at other financial firms in 2022 without reporting them within the required timeframe, resulting in a 7.2 million won fine and disciplinary actions against the retired officials.
On June 1st, an error occurred in the Toss app where automatic transfer amounts were withdrawn twice. The error affected approximately 21,000 transactions, with damages exceeding 2.1 billion won. Last March, an error in the Toss Bank yen exchange rate system caused yen to be traded at half the normal rate for seven minutes.
Meanwhile, new financial conglomerates are granted a six-month regulatory grace period from the date of designation, giving Toss time to prepare for incorporation into the system. Toss stated, "As we have been designated as a financial conglomerate by meeting the requirements following our corporate growth, we plan to strictly comply with the obligations and regulations under relevant laws," adding, "We will continue to pursue responsible management that prioritizes the enhancement of financial market stability and consumer protection."