Seung-beom Ko to Meet Bank of Korea Governor... Will He Unravel the Electronic Financial Transactions Act?

The 1800 Trillion Won Household Debt Issue Is Also Likely to Be Discussed

Financial Services Commission Chairman Ko Seung-beom delivers a congratulatory speech at the Shinhan Financial Group's 20th anniversary 'World Economy Institute-Shinhan Financial Group International Conference' held at Lotte Hotel in Jung-gu, Seoul on the 2nd. Photo by Moon Ho-nam munonam@

[Asia Economy Reporter Kim Jin-ho] Go Seung-beom, Chairman of the Financial Services Commission, will meet with Lee Ju-yeol, Governor of the Bank of Korea, tomorrow. Attention is focused on whether they can untangle the complicated issues, as the Financial Services Commission and the Bank of Korea have repeatedly clashed over the amendment of the Electronic Financial Transactions Act. They are also expected to exchange views on household debt, the biggest risk factor for the Korean economy.

According to financial authorities on the 2nd, Chairman Go will hold a meeting with Governor Lee on the 3rd at the Bank of Korea's main conference room in Jung-gu, Seoul. This is the first time the Financial Services Commission chairman has directly visited the Bank of Korea to communicate.

The meeting between the two leaders is drawing attention as it takes place while the amendment bill to the Electronic Financial Transactions Act, which the Financial Services Commission has been focusing on, remains stalled. Although it is one of the key bills for digital innovation in the financial industry, proper discussions have not been held in the National Assembly due to opposition from the Bank of Korea and others.

However, there is a forecast that a change in atmosphere will be sensed following Chairman Go's appointment. This is because Chairman Go has long worked closely with Governor Lee as a member of the Bank of Korea's Monetary Policy Committee. Given his high understanding of the central bank's core duties, expectations are rising that he will serve as a bridge between the two institutions, which have so far been on parallel tracks.

Discussions on household debt, which has surpassed 1,800 trillion won, are also expected. Chairman Go stated in his inaugural speech that "close policy coordination with policy partners such as the Bank of Korea is necessary." In particular, as the Bank of Korea has hinted at additional base rate hikes within the year, measures to ensure that the rapidly increasing household debt does not undermine financial stability are also likely to be considered.

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