[2021 National Audit] Rep. Yoo Ui-dong "Uninformed Household Loan Caps, Abnormal Measures"

[Asia Economy Reporter Park Sun-mi] Financial authorities have been criticized for neglecting the management of household loans in the banking sector, and when problems arose, they ultimately set unreasonable total loan volume targets, causing damage to genuine borrowers.

On the 7th, Yoo Ui-dong, a member of the People Power Party on the National Assembly's Political Affairs Committee, stated at the Financial Supervisory Service (FSS) audit, "Banks have never met the annual total household loan volume targets," adding, "They have always exceeded the loan targets, but the FSS did not raise any issues about this."

Yoo said, "Having neglected management until now, the financial authorities set this year's household loan total volume growth target at around 5-6%, which has led to a loan crisis," and criticized, "(Considering the previous lack of management) this is an unreasonable target setting and the supervision methods and means are abnormal." He continued, "Due to the ignorant total volume regulation, genuine borrowers are suffering damages," urging, "The FSS must come up with improvement measures to prevent a loan crisis."

In response, Jeong Eun-bo, Governor of the FSS, said, "All related agencies and ministries are working to achieve this year's household loan growth target of around 6%. We have no choice but to implement strict total volume regulations. We agree on the need for delicate management of genuine borrowers during this process and will pay close attention."

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