In South Korea, factoring arrangements are essentially corporate credit facilities based on trade bills, accounts receivable and consumer credits. International factoring is also available for exporters, a market in which the Industrial Bank of Korea is the leading lender.
Business volumes in South Korea reached a modest US$58.3m in 2002, according to the global network Factors Chain International (www.factors-chain.com)
Under the Banking Act, a banking licence is required to conduct traditional lines of banking business and some non-banking activities, including factoring. The Financial Supervisory Commission (FSC) has regulatory jurisdiction over non-bank financial institutions as well as over banks.
