Mok Jin-won, CEO of Hyundai Capital, says "Capital companies face a 'tilted playing field' within the credit finance sector"

On the 17th, Financial Services Commission's meeting with non-bank financial sectors hears capital industry expressing difficulties

[Asia Economy Reporter Ki Ha-young] Mok Jin-won, CEO of Hyundai Capital, raised his voice for the need for financial authorities' attention and support for the survival and growth of the capital industry.

At the first meeting on the 17th between specialized credit finance companies and Financial Services Commission Chairman Ko Seung-beom, CEO Mok said, "Despite the high contribution and increased status within the same credit finance sector, capital companies face many restrictions in entering new businesses." He added, "Capital companies have relatively high licensing thresholds and strict regulations. Although some MyData areas outside the core business are allowed, open banking and comprehensive payment services are blocked, which is unfair compared to card companies."

Capital companies are subject to the same regulations as existing financial sectors, such as the Financial Consumer Protection Act, total household debt regulation, and application of repayment deferrals for small business owners and individuals, but there is discrimination due to an uneven playing field within the credit finance industry.

In fact, capital companies support asset-based financing for manufacturing industries such as automobiles and machinery equipment, which have significant industrial ripple effects, greatly contributing to the promotion of manufacturing sales. They also contribute to the industry by providing credit to low-credit or under-collateralized ordinary citizens and small and medium-sized enterprises, which are difficult for first-tier financial institutions like banks to handle.

CEO Mok said, "While capital companies are fulfilling their responsibilities and obligations, they are being marginalized as a 'neglected playground' within the financial sector because they are not given sufficient opportunities to enhance competitiveness accordingly." He added, "For the competitiveness enhancement of the capital industry, financial authorities' attention and support are needed for sector protection and providing opportunities to enter new businesses for survival and growth."

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