[2022 National Audit] Lee Bok-hyun, Financial Supervisory Service Chief, "Apologies for Insufficient Household Debt Management"

Financial Supervisory Service Governor Lee Bok-hyun is attending the National Assembly's audit on the Financial Supervisory Service held on the 11th, providing a business report. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Song Hwajeong] Lee Bok-hyun, Governor of the Financial Supervisory Service, expressed regret over the failure to respond more proactively to household debt management ahead of global tightening policies.

On the 11th, during the National Assembly's Political Affairs Committee audit, Lee appeared and responded to Democratic Party lawmaker Oh Ki-hyung's criticism that financial authorities failed to address household debt before interest rate hikes by saying, "I agree with the regret that there was a need to prepare based on the assumption that there would be future tightening or interest rate hike policies during the period of continued quantitative easing."

Regarding the criticism that the proportion of variable-rate loans in domestic household loans is high, Lee said, "It is true that the financial authorities did not strongly feel the necessity to reduce household debt or to change the composition and nature of household debt, and I sincerely apologize on behalf of the supervisory authorities for that."

In response to lawmaker Oh's question about the need to reorganize the financial supervisory organization, Lee stated, "I am well aware that discussions on reorganizing the financial supervisory organization have been ongoing since the transition committee period. However, I understand that it has been deprioritized due to the need for consistent coordination among the Financial Services Commission, Financial Supervisory Service, and Ministry of Economy and Finance in response to the rapidly changing financial market situation." He added, "I agree with the issue raised about the need to streamline the functions of policy and supervision."

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