Lee Bok-hyun, Financial Supervisory Service Chief, Urges Constant Monitoring While Guarding Against Risks in Overseas Financial Markets

Lee Bok-hyun, Governor of the Financial Supervisory Service (3rd from the left in the front row), is attending the "Meeting to Review Global Financial Market Risks and Support Overseas Expansion of Financial Companies" held on the 10th at Lotte Hotel in Sogong-dong, Seoul, and is taking a commemorative photo. Photo by Song Seung-seop tmdtjq8506@

[Asia Economy Reporter Song Seung-seop] Lee Bok-hyun, Governor of the Financial Supervisory Service (FSS), urged, “As uncertainty in the global financial markets is increasing, please maintain a heightened sense of vigilance regarding risks in overseas financial markets and conduct continuous monitoring.”

At the ‘Meeting for Checking Risks in the Global Financial Market and Supporting Overseas Expansion of Financial Companies’ held on the 10th at Lotte Hotel in Sogong-dong, Seoul, Governor Lee stated, “During periods of increased volatility, risks from specific countries can be transmitted directly or indirectly.” Executives responsible for global operations from financial holding companies, banks, securities, and insurance companies attended the meeting.

Governor Lee said, “The global economic policy paradigm of low inflation and low interest rates that has persisted in recent years is rapidly changing,” and judged that “the current environment is no longer favorable for domestic financial companies’ overseas operations and new market entries.” He added, “Since this is a sensitive period where even small events domestically and internationally can have a significant impact on the market, it is necessary to closely monitor the financial market situation and respond accordingly.”

He continued, “In the case of overseas branches, risk management can become vulnerable due to physical distance and political and economic factors of the host countries,” and said, “Additionally, please also examine the adequacy of operational aspects such as internal controls, and strive to strengthen crisis response capabilities and sound management of overseas branches.”

Governor Lee also proposed, “We intend to establish an information-sharing channel on overseas financial markets to enable prompt and close cooperation between the FSS and domestic financial companies,” emphasizing, “If a systematic procedure is established to share information on local financial market conditions identified through overseas branches with supervisory authorities, we will be able to proactively respond to prevent serious situations in overseas financial markets from spreading to the domestic financial market.”

Regarding the overseas expansion of domestic financial companies, he encouraged, “It can greatly contribute to strengthening the global competitiveness of Korean finance.” Governor Lee promised, “Through the FSS’s overseas offices, we will share information on local supervisory systems and regulations with the industry to support smooth responses to uncertainties and regulatory risks in local operations.”

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