Lee Bok-hyun, Financial Supervisory Service Chief, "Must Prepare Swift Measures to Stabilize Financial Markets"

Lee Bok-hyun, Governor of the Financial Supervisory Service

[Asia Economy Reporter Song Hwajeong] Lee Bokhyun, Governor of the Financial Supervisory Service (FSS), emphasized the need to prepare for swift financial market stabilization measures through close cooperation with related agencies.

Governor Lee made these remarks on the 14th during the first executive meeting held at the FSS since his inauguration, noting that volatility in the domestic financial market is increasing. He stated, "Recently, the U.S. May Consumer Price Index (CPI) significantly exceeded expectations, causing interest rates to rise and stock prices to fall, which has increased volatility in the domestic financial market." He added, "We must thoroughly monitor key risk factors in vulnerable areas such as the foreign exchange market and short-term financial markets to ensure that individual financial institutions' soundness and liquidity issues do not escalate into systemic financial risks." He instructed to prepare for rapid financial market stabilization measures through close cooperation with related agencies to prevent intensified herd behavior caused by psychological overreactions in the market.

Furthermore, Governor Lee said, "In preparation for the possibility of prolonged interest rate and inflation increases, we need to pay close attention to managing household and corporate debt, liquidity risks, and vulnerable groups such as self-employed individuals, while responding to potential risks considering the characteristics of each financial sector." He emphasized, "To advance financial modernization, we must actively identify regulatory reform tasks to improve outdated regulations that hinder financial industry innovation, while also ensuring thorough protection for consumers and investors, including strengthening disclosure of loan-deposit interest rate spreads and preventing the spread of damage caused by instability in virtual assets."

In addition, Governor Lee mentioned, "Please also make efforts to create a fair and transparent capital market environment by improving the short-selling system and securing accounting transparency."

Finally, Governor Lee requested, "Strengthen communication with market participants such as financial companies and cooperate with related agencies like the Financial Services Commission to facilitate smooth business operations. Also, successfully complete the ongoing task force (TF) on personnel system and organizational culture improvements to establish a rational and fair personnel system along with an organizational culture environment that allows flexible communication."

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