Eun Sung-soo: "Real Estate Policy Must Be Flexible... Overcoming the COVID Crisis Remains Top Priority Next Year"

"Private Equity Fund Failures Are Especially Painful"
"COVID-19 Financial Support, Additional Measures If Needed"

Eun Sung-soo, Chairman of the Financial Services Commission

[Asia Economy Reporter Kim Hyo-jin] Eun Sung-soo, Chairman of the Financial Services Commission, on the 14th expressed his view regarding the continuous criticism and backlash from the market against the Moon Jae-in administration's real estate measures, stating that "it seems necessary to respond flexibly within the policy goals."

Chairman Eun made this remark during an online year-end meeting with financial reporters, saying, "I do not think a fundamental revision of the policy is necessary."

Regarding the COVID-19 situation, he pointed out that the most difficult aspect of the government's announced financial policies is "balancing conflicting objectives."

Chairman Eun stated, "I believe all the criticisms pouring in about the current government policy, such as household debt reaching record highs despite consecutive loan restrictions, are valid. However, the government faces the difficult task of simultaneously pursuing three potentially conflicting goals: financial support due to COVID-19, stabilization of household loans, and enabling ordinary citizens to own homes."

Meanwhile, Chairman Eun mentioned the Lime and Optimus private equity fund scandals as one of the major financial issues this year, saying, "We deeply regret that many investors suffered damages due to the insolvency of some private equity funds."

He added, "We regret not recognizing and supervising the fund insolvencies earlier, and we plan to make every effort to ensure there is no negligence in investor protection going forward."

The First Topic Next Year Will Also Be Overcoming the COVID-19 Crisis

Chairman Eun identified overcoming the COVID-19 crisis as the first topic for next year. He explained that this involves ▲smooth financial support for vulnerable sectors ▲management of financial risks identified during the process ▲and a harmonious soft landing of expansionary financial policies.

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 address issues such as the increase in household and corporate debt and 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 thoroughly collecting opinions from the financial sector, industry, and experts starting from January next year, depending on the progress of COVID-19."

"Policy-type New Deal Fund to Proceed Without Delay"

Chairman Eun explained that regarding the government's 'Korean New Deal' 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, "We will also proceed without delay with policy financial support to create an industrial ecosystem centered on innovative companies."

He further stated, "Since the reduction of the maximum interest rate is scheduled to be implemented from the second half of next year, we will ensure that ordinary citizens are not excluded from financial services by expanding policy-based financial supply for low-income earners, and carefully manage the rapid establishment of the Financial Consumer Protection Act in our financial industry."

Chairman Eun also said, "We will 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 trust so that the capital market can fulfill its original function of supplying venture capital, and we will continue our efforts."

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