Financial Services Commission Chairman to Meet Next Week with Heads of 5 Major Financial Groups to Discuss Market Stabilization Measures

Financial Services Commission Chairman Kim Ju-hyun (fourth from the left) is taking a commemorative photo with the heads of the five major financial holding companies at the Government Seoul Office in Jongno-gu, Seoul, on July 21. From the left, Bae Bu-yeol, Vice President of NongHyup Financial Group; Ham Young-joo, Chairman of Hana Financial Group; Son Tae-seung, Chairman of Woori Financial Group; Kim Ju-hyun, Chairman of the Financial Services Commission; Yoon Jong-kyu, Chairman of KB Financial Group; Cho Yong-byeong, Chairman of Shinhan Financial Group. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Song Hwajeong] Kim Juhyun, Chairman of the Financial Services Commission, will meet next week with the heads of the five major domestic financial holding companies to discuss measures to stabilize the financial market.

According to financial authorities and the financial sector on the 28th, Chairman Kim is scheduled to hold a meeting next week with Yoon Jongkyu, Chairman of KB Financial Group; Cho Yongbyung, Chairman of Shinhan Financial Group; Sohn Taesung, Chairman of Woori Financial Group; Ham Youngjoo, Chairman of Hana Financial Group; and Sohn Byunghwan, Chairman of NH Nonghyup Financial Group.

This will be the first meeting between Chairman Kim and the heads of the five major financial holding companies in about three months since July 21.

Chairman Kim is expected to emphasize the role of financial holding companies in stabilizing the financial market and urge them to participate in the government's market stabilization measures.

The Financial Services Commission held a market stabilization review meeting the day before, chaired by the Director of the Financial Policy Bureau, with the participation of vice presidents from the five major financial holding companies, discussing the holding companies' independent efforts to stabilize the financial market and their roles during the recent period of rising interest rates.

At this meeting, the Financial Services Commission stressed that the responsibility of the holding groups, which play a central role in the financial market, is immense in overcoming the current difficult situation together.

Accordingly, the financial holding companies agreed to actively participate in various market stabilization measures promoted by the government, such as the restructuring of the bond and securities market stabilization fund. They also pledged to strengthen their role as a safety net for the financial market by reducing the issuance of commercial paper (CP), short-term bonds, and bank bonds, supplying liquidity to the short-term money market, and providing support at the holding company level to alleviate funding difficulties of their affiliates.

A Financial Services Commission official said, "Yesterday's meeting was a working-level session with vice presidents participating, and specific messages are expected to come out at next week's meeting."

Financial authorities have been meeting daily with banks to discuss market stabilization measures as the bond market froze due to the Legoland incident. On the 20th, a financial market review meeting was held under the chairmanship of the Director of the Financial Industry Bureau with the Financial Supervisory Service and financial officers in charge of finance from the five major commercial banks (Kookmin, Shinhan, Hana, Woori, Nonghyup), deciding to postpone the normalization of the integrated Liquidity Coverage Ratio (LCR) regulatory ratio for six months. On the 26th, the second financial market review meeting with vice presidents from the five major banks was held to assess the banks' contributions to market stabilization following the decision to postpone the normalization of the LCR regulatory ratio.

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