Eun Sung-soo: "The First Task of Innovative Finance is Redirecting Cash Flow to Companies"

Eun Sung-soo, Chairman of the Financial Services Commission

[Asia Economy Reporter Kim Hyo-jin] Eun Sung-soo, Chairman of the Financial Services Commission, said on the 19th, "(The first task for innovative finance) is to redirect the flow of funds towards companies."

Chairman Eun held a press briefing at the Government Seoul Office in the morning regarding the FSC's work plan for this year, emphasizing that "(the flow of funds) is still heavily skewed towards real estate."

Based on this, Chairman Eun announced a plan to invest about 40 trillion won in innovative companies. He added, "If we do this, won't the sprouts of innovative companies start to grow?" and "We aim to create a trend that favors such companies."

The FSC recently finalized 10 key core tasks to be prioritized this year, including these points.

Based on last year's December 16 real estate measures and the introduction of a new loan-to-deposit ratio, the FSC reaffirmed its policy to block the concentration of funds in real estate and encourage financial companies to handle more corporate loans.

The FSC also plans to revise related systems to enable financing secured by various assets.

Accordingly, amendments to the Movable Property 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. The establishment of a recovery support organization to purchase collateral and non-performing loans to alleviate financial companies' burden of fund recovery is also planned.

The FSC will increase the reflection of technological capabilities in the loan screening process to evaluate companies based on technology and future growth potential, and support the assessment of corporate competitiveness and creditworthiness using big data.

The FSC also plans 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.

Furthermore, the FSC plans to provide customized funding according to the growth stages of companies, such as startup, growth, and maturity.

About 11.2 trillion won will be supplied to expand facility investment in key industries such as automobiles, shipbuilding, and SoBuJang (materials, parts, and equipment). In addition, the FSC intends to actively promote financial regulatory innovation through regulatory sandboxes, the introduction of new data industries, and the expansion of open banking.

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