Eun Sung-soo: "I hope there will be no talk of extending loan maturities again in September"

Eun Sung-soo, Chairman of the Financial Services Commission (Photo by Yonhap News)

[Asia Economy Reporter Kim Hyo-jin] Eun Sung-soo, Chairman of the Financial Services Commission, said on the 26th, "I hope the words 'let's extend the (loan and guarantee) maturity once again in September' do not come out of my mouth."

Chairman Eun made these remarks during the keynote speech at the international conference titled "Economic Paradigm Change and the Future of Finance in the Post-Corona Era," hosted by the World Economy Research Institute and Hana Bank.

Chairman Eun stated, "We extended the maturity of loans and guarantees for six months until the end of September. If it ends as planned, it will be a 'happy ending,' but we are considering whether we need to extend it again and start round two. For now, we will execute well until September."

He also explained during a meeting with reporters after the speech, "Since the COVID-19 situation is prolonged, we cannot suddenly wash our hands and exit when September comes. Therefore, we are raising the issue to market participants now to think together about what to do after September."

He added, "Our financial system is evaluated to have stability and resilience after going through several crises, but even in the past, when financial market volatility was high, investors showed movements chasing profitability. Internally, we will strengthen risk management and prepare in advance on how to stabilize the financial market when normalizing excessive liquidity in the future."

Chairman Eun also said, "We try to induce environmental changes by giving incentives to new players (business operators), but existing banks and card companies are already in fierce competition and complain about increasing the number of players and giving incentives. We will strive to find harmonious policies to resolve conflicts of interest."

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