"Cash Flow from Households to Companies... 40 Trillion Won Support for 1,000 Innovative Companies"

Financial Services Commission Announces Top 10 Core Tasks for 2020

Son Byung-du, Vice Chairman of the Financial Services Commission (far right), is explaining the Financial Services Commission-related matters at the '2020 Joint Government Work Report Briefing of Four Ministries' held at the Joint Briefing Room of the Government Seoul Office Building on the 14th.

[Asia Economy Reporter Kim Hyo-jin] Financial authorities have decided to shift the flow of funds from households and real estate sectors to the corporate sector and to focus on supporting 1,000 innovative companies based on this shift.

On the 17th, the Financial Services Commission announced the 10 key tasks to be prioritized this year, including this plan, during the 2020 government work report conducted with the Ministry of Economy and Finance, the Ministry of Trade, Industry and Energy, and the Ministry of SMEs and Startups.

The Financial Services Commission reaffirmed its policy to block the concentration of funds into real estate based on last December 16 real estate measures and the introduction of a new loan-to-deposit ratio, aiming to encourage financial companies to handle more corporate loans.

Additionally, the Financial Services Commission plans to select 1,000 innovative companies through cooperation with related ministries and provide comprehensive financial and non-financial support worth approximately 40 trillion won.

The Financial Services Commission also envisions revising related systems to enable financing secured by various assets.

Accordingly, amendments to the Movable Asset Security Act will be pursued, including the introduction of a blanket collateral system that allows various corporate assets such as machinery, raw materials, and inventory to be bundled and used as collateral at once. The establishment of a recovery support institution to purchase collateral and non-performing loans to alleviate the financial companies' burden of fund recovery will also be promoted.

The Financial Services Commission plans to enhance the reflection of technological capabilities in the loan screening process and support the evaluation of companies' competitiveness and creditworthiness by utilizing big data, focusing on technology and future growth potential.

Furthermore, the Financial Services Commission intends to completely overhaul the exemption system for financial company employees. The related procedures will be improved to ensure that if funds are supplied after a reasonable evaluation of companies, excessive responsibility will not be imposed even if problems arise.

The Financial Services Commission also plans to provide customized funding according to the growth stages of companies, such as startup, growth, and maturity.

Approximately 11.2 trillion won will be supplied to expand facility investments in key industries such as automobiles, shipbuilding, and SoBuJang (materials, parts, and equipment). In addition, the Financial Services Commission’s policy includes actively promoting financial regulatory innovation through regulatory sandboxes, introducing new data industries, and expanding open banking.

This content was produced with the assistance of AI translation services.