Kim Ju-hyun, Financial Services Commission Chairman, "Prompt Implementation of Financial Company Soundness Management and Support for Vulnerable Groups"

Inaugurated on the 11th... Assumed Position Without Confirmation Hearing
'Financial Market Stability' 'Protection of Vulnerable Groups' 'Innovation in the Financial Industry' as Term Tasks

[Image source=Yonhap News]

[Asia Economy Reporter Sim Nayoung] On the 11th, Kim Juhyun, who took office as the Chairman of the Financial Services Commission, set 'financial market stability,' 'protection of vulnerable groups,' and 'financial industry innovation' as his key tasks for the term. In his inaugural speech, Chairman Kim said, "Before taking office as the Chairman of the Financial Services Commission, I thought about what role our people currently expect from 'finance' and the 'Financial Services Commission,'" and cited 'financial market stability' as the first priority.

He stated, "The current market instability is caused by a combination of various factors, including the international political situation, so it is difficult to predict how it will develop in the future and when it will stabilize," and added, "together with the Financial Supervisory Service, we will manage the soundness of financial companies robustly to ensure that the financial sector remains stable even in crisis situations and plays a stabilizing role by supplying funds appropriately to necessary sectors."

The second priority he mentioned was 'inclusiveness' for vulnerable sectors. He said, "We will promptly implement supplementary budget projects to support vulnerable groups in the financial sector," and added, "Through high-interest refinancing loans (8.5 trillion KRW), the New Start Fund for debt adjustment (30 trillion KRW), we will alleviate difficulties faced by self-employed and small business owners, and speed up the implementation of safe conversion loans (40 trillion KRW) to support housing and living stability for low-income and young people, as well as expand the supply of financial products for the underprivileged (such as Sunshine Loans Youth)."

The third was 'innovation in the financial industry.' "I expect financial companies to create new business models using Artificial Intelligence (AI) and Big Data, gaining recognition in the international financial market," he said, adding, "The financial authorities will examine what regulations delay innovation in our financial companies, whether there are unreasonable regulatory differences compared to overseas and big tech companies, and boldly improve unnecessary or discriminatory parts without being bound by traditional frameworks such as the separation of banking and commerce and the principle of exclusive business."

He continued, "We will calmly establish regulatory systems for virtual assets and big tech, which have recently attracted high public interest and rapidly expanded in scale," and stated, "we will support the virtual asset ecosystem to be nurtured healthily while securing the trust of investors and consumers."

He also emphasized the 'stable support' of the financial sector for the sustainable growth of the real economy. Chairman Kim said, "Our economy, facing a decline in growth potential, must find new breakthroughs through bold private investment and innovative growth," and added, "In the current situation of rising interest rates, we must open the way for liquidity in the financial sector to flow not only into safe assets but also into innovative fields."

He further said, "For future core sectors necessary for carbon neutrality and economic security, and high-risk sectors caused by the reorganization of global supply chains, policy finance will sufficiently supply funds as a market complement and support to act as a primer to attract market funds."

Regarding the controversy over 'government-controlled finance' related to support for vulnerable groups in the financial industry, Chairman Kim said, "I wonder whether the Korean economy and financial industry can develop healthily without our collective interest and consideration for the difficulties of vulnerable groups, who are members of the social community," and added, "While financial company executives consider generating profits and maintaining soundness as their top priority, they must also pay close attention to the difficulties of vulnerable groups within our economy."

Meanwhile, the Financial Services Commission held Chairman Kim's inauguration ceremony at 1:20 p.m. on the 11th at the second floor of the annex building of the Government Seoul Office after President Yoon Suk-yeol approved Kim's appointment earlier that morning. It was 34 days since he was nominated as the Chairman of the Financial Services Commission on the 7th of last month. Although Chairman Kim began preparing for the confirmation hearing immediately after his nomination, the hearing could not be held due to delays in the formation of the National Assembly. The deadline for resubmitting the confirmation hearing report expired on the 8th, so he assumed the chairman position without a confirmation hearing.

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