Eun Sung-soo: "Respecting the Decision of the Nomination Committee on Kim Jung-tae's Reappointment... 'Corona Loan' Extended by 6 Months" (Comprehensive)

"Financial Authorities' Remarks Are Inappropriate"... Hana Financial Group's Nomination Committee to Decide Final Candidates Within This Month
'Corona Loans' Maturity Extended by 6 Months... Eun Seong-su Calls 'Loan Cliff' Question "Unrealistic"

[Image source=Yonhap News]

[Asia Economy reporters Wondara and Seungseop Song] Eun Sung-soo, Chairman of the Financial Services Commission, expressed respect for the decision of the Chairman Candidate Recommendation Committee (CCRC) regarding Kim Jung-tae, Chairman of Hana Financial Group, and his challenge for a 'fourth term.' The CCRC of Hana Financial Group is scheduled to decide the final next chairman candidate within this month.

"Following the procedures of the board or CCRC... It is inappropriate for financial authorities to comment"

On the afternoon of the 16th, right after a private meeting with the chairmen of the five major financial groups at the Federation of Banks building in Jung-gu, Seoul, Chairman Eun was asked, "Is there any concern from the financial authorities about Chairman Kim's challenge for a fourth term?" He replied, "Just like with (Yoon Jong-kyu) KB Financial Chairman last time, it is done according to the procedures of the board or the CCRC," adding, "It is inappropriate for the financial authorities to comment on that, and it is right to respect it." He further said, "The CCRC and the board probably know what the authorities and media have pointed out, and I think they will act reasonably based on that."

Kim, a strong candidate, is noted to have a weakness due to friction with financial authorities during his 'third term' in 2018. At that time, the Financial Supervisory Service requested verbally and in writing that the CCRC postpone the appointment schedule, arguing that it was unfair for the incumbent chairman to participate in the CCRC, but the committee proceeded with the schedule and nominated Kim as the final candidate. Kim has led Hana Financial for nine years, having first become chairman in 2012 and successfully renewed his term in 2015 and 2018. The CCRC announced four next chairman candidates, including Kim, the day before, and plans to finalize the candidate within this month after in-depth interviews.

[Image source=Yonhap News]

"'COVID-19 loans' extended by 6 months... Concerns about a loan cliff are unrealistic, a soft landing plan will be announced soon"

During the meeting, the six-month extension of 'COVID-19 loans' and the '20% dividend controversy' were also discussed. Chairman Eun explained, "Regarding the extension of loans, it was generally explained as inevitable, and most agreed. Since there was agreement on a six-month extension in broad terms, I think it will proceed in that direction."

He added, "Concerns about a 'loan cliff' are unrealistic," but also said, "We will prepare and announce a soft landing plan without delay." In response to criticism that repeated extensions increase the risks that companies and households must bear, he countered, "(The risk) is not zero. However, considering the COVID-19 situation, the answer is clear," adding, "Holding companies or financial firms should build up more reserves accordingly."

Regarding criticism of regulatory intervention after the financial authorities recommended a 20% dividend payout ratio to the financial sector, he emphasized, "It is not because we dislike banks or holding companies that we recommended dividends; rather, authorities in the UK and Europe are asking to refrain from dividends." He continued, "If you just vaguely say 'please refrain' like 'gear down on your own,' it is unclear; it needs to be made clear. We recommended the 20% dividend payout to be transparent."

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