"Reduce Financial Loan-Deposit Margin... Incentives for Companies Sharing the Burden"

Kwon Seong-dong "Limitations of Policy Effects by Government Alone"
"Banks and Oil Industry Must Share the Burden"

Kwon Seong-dong, floor leader of the People Power Party, is attending the Supreme Council meeting held at the National Assembly on the 23rd and delivering opening remarks. Photo by Yoon Dong-joo doso7@

The ruling party, the People Power Party, has urged the financial sector and oil companies to share the burden in order to overcome high inflation and high interest rates. Although the government has implemented measures such as reducing fuel taxes and deferring interest repayments, it has judged these to have limitations. It also proposed providing incentives to companies that share the burden.

On the 23rd, Kwon Seong-dong, the floor leader of the People Power Party, said at the party's Supreme Council meeting held at the National Assembly, "The government is preparing comprehensive measures to suppress price increases as much as possible and revitalize the economy, but the policy effects cannot be maximized by the government alone," adding, "We will actively discuss with the government ways to provide incentives to companies that participate in sharing the burden."

Targeting banks, Floor Leader Kwon said, "Household debt can be a time bomb not only for family finances but also for the national economy," and added, "There have been continuous criticisms that commercial banks have taken excessive profits from the difference between deposit and loan interest rates. Efforts to share the burden should be made together within the scope that does not undermine market autonomy."

Seong Il-jong, chairman of the Policy Committee, also appealed to the financial sector to actively participate in reducing the interest rate spread between deposits and loans. Quoting a report issued by the Korea Financial Investment Association, Chairman Seong said, "80% of the profits of the seven major bank groups came from interest income," pointing out, "It is true that banks lending money to the public are earning huge interest profits." He continued, "The larger the gap between deposit and loan interest rates, the heavier the burden on people struggling with interest payments on real estate loans taken to the limit and loans to small business owners and self-employed individuals."

He urged, "The financial industry should actively participate in reducing the interest rate spread to preserve the value of finance and join forces to overcome the crisis," and added, "Financial authorities should also promptly improve related systems."

The ruling party's floor leadership also called on the oil industry to contribute to price stabilization. Floor Leader Kwon said, "Despite concerns about tax revenue shortages, the government has maximized the reduction of fuel taxes," and added, "Oil companies should not try to fatten themselves alone in the high oil price situation."

The call for oil companies to share the burden was previously mentioned by the Democratic Party as well. Kim Seong-hwan, chairman of the Democratic Party's Policy Committee, recently said, "We will do our best to minimize the burden of oil prices on ordinary people by seeking ways to minimize excess profits of oil companies or recover them through fund contributions, so that their shoulders can be a little lighter." Accordingly, there is growing weight to the possibility that both ruling and opposition parties will jointly urge the oil industry to share the burden after the formation of the National Assembly.

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