[New Year's Address] Eun Seong-su, Chairman of the Financial Services Commission, "We Must Prepare for a Leap After COVID-19"

Eun Sung-soo, Chairman of the Financial Services Commission, is seen answering questions at the year-end press briefing held on the 14th at the Joint Briefing Room of the Government Seoul Office in Jongno-gu, Seoul.
[Image source=Yonhap News]

[Asia Economy Reporter Kangwook Cho] Eun Sung-soo, Chairman of the Financial Services Commission, emphasized on the 31st, "While prioritizing overcoming the COVID-19 crisis in 2021, we must prepare for the leap of the Korean economy and finance after COVID-19 so that the crisis can be turned into an opportunity."

In his New Year's address announced that day, Chairman Eun stated that the policy directions the FSC will pursue in 2021 are ▲crisis overcoming ▲financial stability ▲innovative growth ▲restoration of trust.

First, he said that to overcome the COVID-19 crisis, smooth financial support will continue to be provided, focusing on vulnerable sectors.

The government will continue financial support for small business owners through the establishment of a special support program for tenant small business owners and the reorganization of the second program of commercial banks, while also expanding policy finance programs for small and medium-sized enterprises and mid-sized companies beyond this year.

Chairman Eun said, "If necessary, we will devise additional measures in addition to existing plans."

He also said he would strive to maintain financial stability through risk management. This is due to concerns that liquidity has expanded and private sector debt has increased during the response and overcoming process of the COVID-19 crisis, which could become potential risk factors for future economic growth and financial stability.

Chairman Eun emphasized, "We will proactively manage risk factors in asset markets and prepare so that the expanded liquidity can be adjusted in an orderly manner," adding, "In particular, we will prepare advanced household debt measures so that the increase in household debt does not act as a major risk factor to our economy and finance."

He specifically stated that he will promote the gradual normalization of COVID-19 financial support measures, explaining, "To minimize shocks that may occur during the normalization process, we will prepare and gradually implement a soft landing plan for financial support that considers the payment capacity of individuals and companies."

For the innovative growth of the national economy, dense and multi-layered financial support will be promoted using policy finance, venture capital, and New Deal funds for innovative companies.

Chairman Eun stated that capital regulations on investments in small and venture companies will be improved so that financial companies such as banks, securities, and insurance can participate in venture capital investments, and that the 20 trillion won scale policy-type New Deal fund over five years will be successfully led to become a substantial investment.

He also emphasized the restoration of trust in finance. Chairman Eun said, "Due to some private equity fund insolvencies, many investors suffered damages and trust in finance was damaged," adding, "We will do our best to establish a future-oriented financial consumer protection plan to find a reasonable balance between revitalizing the financial market and protecting consumers."

In particular, he stressed, "To enhance the completeness of policies, we will actively communicate with the market, policy demanders, and the public," and "We will also strive for smooth policy implementation so that the public can feel the results."

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