Financial Services Commission Chairman Expands Communication Scope, Actively Requests Cooperation on '125 Trillion Won Livelihood Measures'

On the 27th, at the Korea Federation of Banks building in Jung-gu, Seoul, Chairman Kim Ju-hyun (center) and attendees are taking a commemorative photo at the 'Financial Services Commission Chairman - Financial Industry Association Presidents Meeting.' / Photo by Moon Ho-nam munonam@

[Asia Economy Reporter Song Hwajeong] Kim Juhyun, Chairman of the Financial Services Commission, is actively engaging in communication to ensure the smooth implementation of a 125 trillion won financial sector livelihood measure. Previously, Chairman Kim held a meeting with financial holding company chairmen to request support and continued his communication efforts by meeting consecutively with economic and financial market experts as well as heads of financial sector associations. The reason Chairman Kim is taking such an active communication approach is that the cooperation of the financial sector is essential for the financial livelihood measures and financial regulatory innovations being promoted by the Financial Services Commission. Following controversies such as moral hazard concerns and shifting responsibility to the financial sector after the policy announcement, it appears that Chairman Kim decided to personally explain the measures and seek understanding.

On the 27th, Chairman Kim Juhyun held a meeting at the Bankers Club of the Korea Federation of Banks with six major financial sector association heads: Kim Kwangsoo, Chairman of the Korea Federation of Banks; Jung Heesoo, Chairman of the Life Insurance Association; Jung Ji-won, Chairman of the General Insurance Association; Oh Hwakyung, Chairman of the Korea Federation of Savings Banks; Oh Kwangman, Executive Director of the Credit Finance Association; and Sung Inmo, Executive Director of the Korea Financial Investment Association, urging their cooperation in implementing the financial sector livelihood measures.

Chairman Kim pointed out, "Rapid environmental changes such as high interest rates and high inflation, along with increased uncertainty in the financial markets, are materializing various risk situations," adding, "There is growing concern that potential non-performing loans among borrowers, especially self-employed and small business owners who have accumulated COVID-19 damages, will gradually expand." He emphasized, "Since financial companies are the ones who best understand the financial conditions and situations of borrowers, I ask financial companies themselves to take an interest in supporting borrowers facing difficulties through thorough checks on customers experiencing hardships."

Chairman Kim also expressed a strong will to improve regulations. He stated, "We will actively promote regulatory improvements so that finance can gain trust as an independent industry and flexibly respond to the digital transformation and changes in industrial competition landscapes," adding, "Through bold and decisive regulatory improvements that are not bound by past regulatory frameworks such as the separation of banking and commerce and the exclusivity principle, we will support the realization of creative ideas from the financial sector."

In response, the heads of financial sector associations replied that they plan to closely respond to the current economic and financial difficulties as well as enhance the competitiveness of the financial industry through continuous communication with the government and regulatory reforms. They also agreed to seek ways for the financial sector itself to alleviate the difficulties of borrowers facing financial hardships.

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