Yoon Seok-heon: "Overcoming the COVID Crisis and Establishing a Trustworthy Financial System Are the Basic Directions"

"Overcoming the COVID-19 Crisis and Maintaining Financial Stability"

[Image source=Yonhap News]

[Asia Economy Reporter Park Sun-mi] Yoon Seok-heon, Governor of the Financial Supervisory Service, stated at the National Assembly's Finance and Economy Committee plenary session on the 17th that "the basic direction of financial supervision for this year is set as supporting the overcoming of the COVID-19 crisis and establishing a trusted financial system."

In his greeting on the day, Governor Yoon said, "We will overcome the COVID-19 crisis and maintain financial stability." He added, "While continuing financial support for COVID-19, we will prepare a soft-landing plan to prevent cliff effects during the normalization process. We will maintain the resilience of the financial system by enhancing the loss-absorbing capacity of financial companies and systematically respond to financial system risk factors such as household debt issues and concentration of high-risk assets."

He also said efforts will be made to establish a fair financial transaction order. In line with the enforcement of the Financial Consumer Protection Act, the supervisory system for business conduct will be reorganized to be consumer-centered, and a culture of responsible management in financial companies will be fostered. Furthermore, while firmly upholding the principle of same function, same regulation, strict measures will be taken against market order-disrupting acts such as illegal short selling and unfair capital market transactions.

Inclusive finance will also be expanded. Governor Yoon stated, "We will prepare measures to include low-credit borrowers in the formal financial sector and review and improve the operation status of the debt adjustment system to actively support the recovery of low-income self-employed individuals." He added, "Through rational improvements to national insurance systems such as automobile insurance and indemnity insurance, we will alleviate insurance premium burdens and also strive to expand customized financial education and information provision."

Moreover, while continuously supporting financial industry innovation, efforts will be made to enhance trust in financial supervision. He emphasized, "We will strengthen support for emerging financial service industries and respond meticulously to risk factors arising from the acceleration of digital finance. Additionally, we will promote digital innovation in financial supervision, secure integrity that meets public expectations through internal reform of the Financial Supervisory Service, and rationally improve inspection and sanction procedures."

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