[2021 National Audit] Jeong Eun-bo, Financial Supervisory Service Chief, "Will Manage Risk Factors Caused by Excessive Liquidity"

[Asia Economy Reporter Park Sun-mi] On the 7th, Jeong Eun-bo, Governor of the Financial Supervisory Service (FSS), stated at the National Assembly's Political Affairs Committee audit that efforts will be made to establish a fair market order to securely manage financial market stability and risks arising from excessive liquidity, and to ensure the sustainable growth of the financial industry.

At the audit, Governor Jeong said, "We will overcome COVID-19 and domestic and international financial instability factors to secure financial market stability. We will also strive to stably manage financial market risk factors caused by excessive liquidity such as the increase in household debt and the expansion of asset price volatility, and enhance the loss absorption capacity of financial companies to maintain the resilience of the financial system." He added, "We will further extend financial support for small business owners and SMEs and the relaxation of soundness regulations to ensure steady support for the real economy, and prepare phased soft-landing measures for normalization in the future."

He also said efforts will be made to establish a fair market order for the sustainable growth of the financial industry. He stated, "To ensure the early settlement of the Financial Consumer Protection Act (FCPA) implemented in March this year, we have operated a guidance period and prepared guidelines, and will continuously listen to field opinions to support the FCPA's establishment in the market." Furthermore, he mentioned, "We will further extend financial support for small business owners and SMEs and the relaxation of soundness regulations to ensure steady support for the real economy, and prepare phased soft-landing measures for normalization in the future."

Regarding the recent MergePlus incident, Governor Jeong said that through cooperation with investigative authorities, efforts are focused on accurately grasping the status of customer assets, and that the FSS will continue to push for institutional improvements and review similar cases to prevent recurrence. The FSS is inspecting whether any electronic gift certificate issuers have failed to fulfill registration obligations under the Electronic Financial Transactions Act. They are also considering legislating the currently administratively guided "User Fund Protection Guidelines for Electronic Financial Operators."

Supervisory measures for big tech financial platforms, which are rapidly expanding their business areas, will also be prepared. Governor Jeong said, "As big tech's entry into finance accelerates, we will establish reasonable supervisory measures such as regulations on business conduct to ensure a fair competitive order between digital platforms and financial companies."

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