The Launch of 'Seomin Geumyung Forum,' the First Think Tank in the Savings Bank Industry

First Forum Held on the Morning of the 23rd at Eunhaeng Hoegwan, Jung-gu, Seoul

Jae-sik Park, President of the Korea Federation of Savings Banks (center), is taking a commemorative photo with participants at the 1st Savings Bank Community Finance Forum held on the 23rd at the Bankers' Hall in Jung-gu, Seoul. Photo by Korea Federation of Savings Banks

[Asia Economy Reporter Kim Min-young] The Seomin Financial Forum, a specialized research institution (think tank) for the savings bank industry, was launched on the 23rd. The Seomin Financial Forum will play a role in exploring the long-term development direction of savings banks and nurturing experts.

The Central Association announced that it held the 1st Savings Bank Seomin Financial Forum on the morning of the same day at the Bankers' Hall in Jung-gu, Seoul. Among major financial sectors, the savings bank industry was the only one without a think tank, and the need for its establishment has been raised to present mid- to long-term development directions and prospects. The Central Association plans to hold this forum semiannually or quarterly.

The first forum was held under the theme of "Activation Measures for Guarantee Loans for Small Business Owners and Small Enterprises by Seomin Financial Institutions" to provide financial support to the Seomin (ordinary people) and small business owners who are struggling due to the novel coronavirus infection (COVID-19). In his opening remarks, Park Jae-sik, president of the Central Association, stated, "We will ensure that this forum, taking its first step, settles as a platform for professional discussions on various topics related to Seomin finance, enabling savings banks to continuously grow as Seomin financial institutions and play a pivotal role."

The subsequent keynote presentation was delivered by Lee Jae-yeon, vice president of the Korea Institute of Finance. Vice President Lee pointed out issues with the current credit guarantee system, noting that guarantees by public credit guarantee institutions are mostly used for bank loans and expressed concerns about moral hazard among financial companies due to high guarantee ratios. He argued, "It is necessary to improve related systems so that Seomin financial institutions can expand the handling of public guarantee loans targeting Seomin and small enterprises, and to introduce exclusive products for the Seomin financial sector."

The Central Association, together with the Seoul Credit Guarantee Foundation, is preparing to launch new customized guarantee products for Seomin that can be used at lower interest rates, and is currently discussing specific details such as guarantee amounts, guarantee ratios, and contributions. About 50 experts from financial authorities, industry, and academia attended the event, including Kim Jong-hoon, head of the Small Finance Division at the Financial Services Commission; Kim Sang-taek, CEO of SGI Seoul Guarantee; Han Jong-kwan, chairman of Seoul Credit Guarantee Foundation; major savings bank CEOs; Professor Lee Ki-young of Kyonggi University; and Professor Kim Sang-bong of Hansung University.

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