'Economic and Financial Expert Do Gyu-sang Returns... Will New Plans for Loan Management Such as DSR Emerge?'

Introduction of DSR in Banking Sector during Tenure as Director of Financial Policy Bureau
Blue House "Expect Successful Resolution of Financial Stability and Other Issues"

[Asia Economy Reporter Kim Hyo-jin] Do Gyu-sang (photo), former Blue House Economic Policy Secretary, who was nominated on the 1st as Vice Chairman (Vice Minister level) of the Financial Services Commission (FSC), has held various positions including Director of Financial Policy Division at FSC, Director of Small and Medium-Sized and Low-Income Financial Policy, Director of Financial Services Bureau, Director of Financial Policy Bureau, and Director of Economic Policy Bureau at the Ministry of Strategy and Finance, earning evaluations for his exceptional understanding and expertise in finance and the overall economy.

The Blue House's statement regarding Do's nomination, saying, "He is called an 'economic and financial policy expert' with deep understanding of financial policy and financial markets and excellent communication skills, and is expected to successfully resolve urgent issues such as financial market stabilization, financial innovation, and establishment of sound credit order," is interpreted in this context.

Do, who moved to the Ministry of Strategy and Finance as Director of Economic Policy Bureau in September 2017 through inter-ministerial personnel exchange, will return to his original home, the FSC, after about three years with this appointment. It was considered unprecedented for a core position at the Ministry of Strategy and Finance, such as Director of Economic Policy Bureau, to be held by an external (FSC) official.

Do is also well known for introducing the Debt Service Ratio (DSR) regulation to the banking sector for the first time during his tenure as Director of Financial Policy Bureau at FSC. This is why attention is focused on what form the comprehensive household loan management plan, especially the expansion of DSR regulation, currently under discussion by financial authorities, will take.

DSR is an indicator representing the borrower's repayment burden relative to repayment capacity, calculated by dividing the annual principal and interest repayment amount of all loans held by the borrower by the annual income.

Although the surge in household loans has somewhat eased since last September, the FSC judges that it is not yet a stage to be reassured. Consequently, the idea of applying DSR more strictly to suppress loan limits is continuously being raised in the financial sector.

However, the FSC is concerned that such measures could block loan access for low-credit and low-income groups, such as small business owners struggling due to the impact of COVID-19.

In this regard, Eun Sung-soo, Chairman of the FSC, stated on the 27th of last month, "We do not intend to regulate the daily lives of ordinary citizens," and expressed his intention to pursue 'targeted regulations' to curb real estate speculation funds.

A financial sector official predicted, "Do will likely focus on refining the overall loan management plan through coordination with Chairman Eun and the Ministry of Strategy and Finance." The official also said, "It is expected that the pace of policy promotion related to 'financial innovation,' such as digital, platform, and data finance mentioned by the Blue House, will accelerate."

Do will be appointed on the 2nd. Below is Do's profile.

▲ Born in 1966 in Busan ▲ Graduated from Busan Baejeong High School in 1985 ▲ Graduated from Seoul National University Department of Economics in 1989 ▲ Completed Policy Studies at the Graduate School of Public Administration, Seoul National University in 1992 ▲ Graduated from Michigan State University College of Business in 2004 (Master's in Finance) ▲ Passed the 34th Administrative Examination in 1990 ▲ Spokesperson of the Financial Services Commission in 2013 ▲ Director of Financial Policy Bureau at FSC in 2016 ▲ Policy Advisor to the Chairman of FSC in 2017 ▲ Director of Economic Policy Bureau at the Ministry of Strategy and Finance in 2017 ▲ Economic Policy Secretary at the Blue House from 2018 to 2020

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