Top Two Financial Chiefs Emphasize 'Strengthening Communication and Cooperation'... Stress Stability Management on Household Debt Issues (Comprehensive)

Candidate Go Seung-beom: "Stabilizing Financial Markets and Systems Is the Top Priority"
Household Debt Issue... "Will Consider Ways to Enhance Policy Effectiveness"
Jeong Eun-bo, Financial Supervisory Service Chief: "Redefining Financial Supervision Direction"

(From left) Ko Seung-beom, nominee for Chairman of the Financial Services Commission, Jeong Eun-bo, nominee for Governor of the Financial Supervisory Service.

[Asia Economy reporters Kim Jin-ho and Lee Kwang-ho] Go Seung-beom, a candidate for the Financial Services Commission (FSC) Chairman and a former career financial bureaucrat who passed the 28th Administrative Examination, along with Jeong Eun-bo, the new Financial Supervisory Service (FSS) Governor, expressed their intention to focus on stable management of COVID-19 financial support, real estate, and household debt issues.

On the morning of the 6th, as he headed to the Korea Deposit Insurance Corporation office where his National Assembly confirmation hearing preparation office was set up, candidate Go told reporters, "The most important thing in carrying out (FSC) tasks is cooperation with the related agency, the FSS," adding, "We will move as one body and strengthen communication and cooperation in all matters."

Go’s emphasis on ‘harmony’ in his meeting with the media is interpreted as expressing concern over the conflicts between the two financial authorities in various aspects over recent years and stressing the need to end the conflict phase now.

Jeong, who was inaugurated that morning as the new FSS Governor, is a classmate of Go from the Administrative Examination and has worked closely with him for a long time. Expectations are rising that the relationship between the two financial authorities, which have clashed over issues such as ▲financial supervision system reform ▲financial institution sanctions ▲personnel authority during the Moon Jae-in administration, will be restored once both take office.

Candidate Go stated that after assuming the FSC Chairman position, he will prioritize financial market and financial system stability. He also indicated a proactive stance toward addressing asset market overheating issues.

Regarding household debt, which has emerged as a ticking time bomb for the Korean economy, he said, "I will consider ways to enhance the effectiveness of countermeasures." However, when asked if this implied additional loan regulations, he was reserved, saying, "I will think about it more and provide details later."

When asked about his minority opinion supporting ‘interest rate hikes’ during his time as a member of the Bank of Korea’s Monetary Policy Committee, emphasizing financial stability, he replied, "It was just an opinion expressed during the monetary policy formulation process," adding, "Regarding household debt, the FSC has managed it from a macro perspective and will continue to manage this area thoroughly."

Regarding the extension of maturity and interest payment deferral measures for ‘COVID loans’ ending at the end of September, he said, "We will closely examine the real economy and quarantine situation and come up with a plan."

On the regulatory direction concerning virtual currency, he said, "I will carefully consider various measures soon and make a decision." Candidate Go added, "I think there is not much time left regarding the virtual currency issue," and "If I speak about it right now, it could cause market confusion, so I will answer in detail later."

Governor Jeong also expressed upon his first day at work, "I will manage the FSS in a direction that is necessary for and contributes to the development of the financial market and industry."

At his inauguration ceremony, he stated, "I will redefine the direction that financial supervision should pursue," presenting three directions: ▲financial supervision based on law and principles ▲harmonious operation of proactive supervision such as guidance and reactive supervision such as sanctions ▲and financial consumer protection.

Governor Jeong diagnosed, "We are still facing a challenging financial environment where financial support for real economic recovery is urgently needed while managing excessive private sector debt." He expressed concern that "a so-called ‘perfect storm’ could occur, where various risks such as the potential expansion of insolvency among marginal companies and self-employed individuals, and price adjustments of assets with bubble concerns, come all at once."

He emphasized, "The attitude of employees is important for redefining financial supervision," urging, "Please actively communicate with the financial market and always remember that the essence of financial supervision is support, not regulation."

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