Seungbeom Go "Additional Regulations on Household Debt if Necessary... Consideration for Real Demanders" (Comprehensive)

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Ko Seung-beom, the nominee for the Financial Services Commission chairman, is attending the confirmation hearing held at the National Assembly on the 27th, responding to questions from lawmakers. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Jin-ho Kim] Ko Seung-beom, nominee for Financial Services Commission chairman, emphasized on the 27th that his top priority after taking office will be financial stability through household debt management. He also hinted at additional regulatory tightening if necessary and pledged to spare no policy consideration to ensure that actual borrowers do not suffer in the process.

At the National Assembly's Political Affairs Committee confirmation hearing, Ko said, "I will mobilize all possible policy capabilities to manage the rapidly increasing household debt so that it does not undermine financial market stability."

Accordingly, the schedule for the gradual expansion of the Debt Service Ratio (DSR) by borrower, originally planned until July 2023, is expected to be reconsidered. Ko stated, "I will review whether the gradual expansion of the DSR is appropriate."

Regarding concerns that total loan volume regulations, applied indiscriminately to loans such as credit and jeonse (key money deposit) loans, may harm low-income and actual borrowers, he responded, "While there are certainly difficulties in managing total volume, we will carefully consider and implement policies so that actual borrowers do not face hardships."

On the recent recommendation by financial authorities to commercial banks to reduce loan limits to within 'annual income,' Ko expressed the view that "this is not government intervention." He explained, "Once I take office, I intend to pursue market-friendly policies and will create plans through consultation on goals such as household debt management."

Regarding the extension of COVID-19 loan maturity extensions and interest payment deferrals, Ko indicated his intention to extend them. He said, "Considering the serious COVID-19 quarantine situation, decisions should fully take into account the difficulties faced by small and medium-sized enterprises and self-employed individuals."

On calls to extend the reporting deadline for virtual currency operators, he reaffirmed his previous stance, saying, "It is appropriate to keep the schedule to prevent user damage." Ko emphasized, "If the period is extended, trust protection and user damage could increase, so the schedule must be adhered to."

Regarding the recent large-scale refund controversy surrounding the 'Merge Point incident,' he responded, "We will assess the actual situation and check if there are similar cases."

On the Bank of Korea's recent base rate hike, Ko said, "Subject to my personal opinion, I actively support it," adding, "One rate hike is not enough. Considering the accumulation of financial imbalances and the resulting increase in household debt, further rate hikes seem necessary."

Meanwhile, Ko is sweating to clarify controversies surrounding restrictions on his duties. The opposition party launched a barrage of criticism over Ko's relationship as brother-in-law to Kim Nam-gu, chairman of Korea Investment Holdings. According to the Financial Services Commission Establishment Act, if Ko becomes chairman, he must recuse himself from decisions related to Korea Financial Holdings or Kakao Bank.

In response, Ko explained, "Regarding Korea Investment Holdings, I have voluntarily recused myself from any matters that could be grounds for disqualification while serving on the Financial Services Commission and Monetary Policy Committee," adding, "In recent years, decisions related to Korea Investment Holdings accounted for only 1% of all agenda items."

He continued, "Korea Investment Holdings has rather suffered disadvantages because of me, not benefited, and regulatory staff are fully aware of this matter and will perform their duties fairly."

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