Eun Sung-soo "Painful Private Equity Fund Damage... Considering Additional COVID-19 Measures"

"Regret for Not Detecting and Supervising Poor Management Sooner"
"Discussion on Soft Landing Measures Like Loan Maturity Extensions to Begin in January"

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 14th, "We deeply regret that many investors have suffered losses due to the insolvency of some private equity funds."

Chairman Eun made these remarks during the year-end meeting with financial reporters at the Financial Services Commission on the same day.

He stated, "I regret that we did not recognize and supervise the fund insolvencies earlier," and emphasized, "We plan to make every necessary effort to ensure there is no negligence in protecting investors going forward."

Chairman Eun identified overcoming the novel coronavirus disease (COVID-19) crisis as the first key issue for next year.

Regarding this, he explained that ▲smooth financial support for vulnerable sectors ▲management of financial risks identified during the process ▲and a soft landing of expansionary financial policies must be harmoniously achieved.

He said, "We will respond swiftly and boldly to changing circumstances, including existing support measures such as the '175 trillion won + alpha' program and additional measures if necessary."

He also promised, "We will carefully monitor and actively respond to the increase in household and corporate debt, as well as the rise in real estate prices disconnected from the real economy."

The financial authorities and financial sector are promoting financial support such as loan maturity extensions, interest payment deferrals, and various financial regulatory relaxations for small and medium-sized enterprises and small business owners affected by COVID-19.

Chairman Eun mentioned, "The soft landing plan for these measures will be decided after fully gathering opinions from the financial sector, industry, and experts starting in January next year, while monitoring the progress of COVID-19."

"Policy-type New Deal Fund to be Promoted Without Delay"

Chairman Eun explained that regarding the 'Korean New Deal' promoted by the government and the supporting 'policy-type New Deal fund,' "Since the related budget passed the National Assembly on the 2nd, preparations are underway to establish the fund in earnest as soon as possible," and added, "Policy financial support to create an industrial ecosystem centered on innovative companies will also be promoted without delay."

He also said, "Since the reduction of the maximum interest rate is scheduled to be implemented from the second half of next year, we will ensure that low-income people are not excluded from financial use by expanding policy-based financial supply for the underprivileged, and carefully manage the Financial Consumer Protection Act so that it quickly settles in our financial industry."

Chairman Eun further stated, "We will also ensure that digital financial innovation is carried out without fail, even in small ways, so that the public can feel the changes in their daily lives." He added, "We are paying special attention to restoring investor confidence so that the capital market can recover its original function of supplying venture capital, and we will continue our efforts."

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