Seoul’s financial regulator has launched a sweeping review of every industry under its jurisdiction to map exposure to overseas private‑credit funds. The move follows a series of high‑profile defaults in the asset class that have rattled markets worldwide. By cataloguing holdings and loan arrangements, officials hope to spot concentrations that could amplify systemic stress if external lenders pull back in the near term to safeguard stability.

The regulator’s mandate covers banks, insurers, pension funds and non‑financial corporations that have tapped foreign credit‑line vehicles to fund expansion or refinance debt. Analysts warn that reliance on offshore capital can compress margins when global rates rise, and that hidden linkages may escape traditional supervision. A comprehensive database will enable stress‑testing scenarios that reflect cross‑border funding shocks and protect domestic growth prospects.

Regulators will publish findings after the audit, giving investors a clearer view of hidden leverage across South Korea’s financial regulator corporate fabric. Credit rating agencies are likely to adjust outlooks for firms with heavy offshore borrowings, while foreign lenders may tighten terms. The exercise signals Seoul’s intent to tighten oversight before broader systemic global market turbulence spreads.