Son Byung-du, Vice Chairman of FSC, "Financial Firms Should Not Lead Customers to High-Risk Products"

Sohn Byung-doo, Vice Chairman of the Financial Services Commission (second from the left), is delivering opening remarks while presiding over a meeting among financial institutions to support companies responding to COVID-19 at the Financial Services Commission in the Government Seoul Office Building, Jongno-gu, Seoul, on the 23rd. (Photo by Financial Services Commission)

[Asia Economy Reporter Kim Hyo-jin] Sohn Byung-doo, Vice Chairman of the Financial Services Commission, said on the 23rd, "The financial market should not lead customers to high-risk products."

Vice Chairman Sohn held a meeting with financial institutions, including commercial banks, policy financial institutions, and financial associations, at the Financial Services Commission's main conference room in the Seoul Government Complex on the morning of the same day. He pointed out, "There are signs that the sale of high-risk, high-return financial products is increasing again recently."

Vice Chairman Sohn urged, "Financial companies should be cautious about the current economic situation and help general investors to invest wisely."

He also requested the financial sector, "Please carefully recommend investments by fully explaining the profit and loss structure of financial products and the risk of principal loss to prevent incomplete sales."

The financial authorities plan to crack down on market manipulation and other disruptive activities in the stock market while continuously managing and supervising whether there is any possibility of incomplete sales during the future sales process of financial investment products to consumers.

Vice Chairman Sohn also asked the financial sector to actively participate in the corporate stabilization support plan announced by the government the day before. The government decided to establish an 'Industrial Stabilization Fund' of more than 40 trillion won to minimize damage caused by the novel coronavirus disease (COVID-19). At the same time, the government plans to expand the size of the livelihood financial support program of '100 trillion won + alpha (α)' by about 35 trillion won.

Vice Chairman Sohn said, "To ensure that this measure is properly implemented on the ground, policy financial institutions, as the executing agencies of the policy, should pay attention so that companies can conveniently receive funds in a timely manner."

He added, "It is true that overcoming the crisis is insufficient by the government's efforts alone," and said, "The financial sector should also respond to market expectations and do its best within the available scope to ensure smooth fund supply."

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