South Korea's Financial Services Commission (FSC) proposed rule changes on October 29 aimed at accelerating the resolution of insolvent or distressed financial companies by amending the Act on the Structural Improvement of the Financial Industry and the Depositor Protection Act. This initiative seeks to prevent the spread of financial industry risks and systemic risks, while ensuring the full protection of the rights of relevant shareholders and creditors. The new rules will drastically shorten the resolution process from approximately 150 days to 3-4 days and expand the resolution mechanisms to include contract transfers, third-party acquisitions, capital reductions, and license revocations. The proposal will enter a 42-day public comment period from November 2 to December 14.