Ruling Party Targets Banks' 'High-Interest Business'... Ahn Cheol-soo Also Calls It "Interest Business Against the People"

[Image source=Yonhap News]

[Asia Economy Reporter Lee Ji-eun] As interest rate hikes continue, the political sphere is making pointed remarks targeting the banking sector's 'high-interest profiteering' day after day.

On the 5th, Ahn Cheol-soo, a member of the ruling People Power Party and one of the party leadership candidates, posted on his social media (SNS), "It is no exaggeration to say that domestic banks have been fattening themselves by profiting from interest charged to the public," urging the government to devise measures to reduce the interest burden on the younger generation.

He raised his voice, saying, "The net profit of the four major financial holding companies is expected to exceed 16 trillion won this year, and about 90% of this enormous profit comes from loan interest," adding, "There could have been no easier business than providing variable-rate loans to young people who live in fear that they may never own a home under their name in their lifetime."

He continued, "There are still many things that can be done, such as further easing the requirements for the Safe Conversion Loan, activating refinancing loans with extended terms, and expanding debt adjustment programs for youth and low-income groups," and said, "Banks should stop making unconvincing complaints and act responsibly for the future of the community." This implies that not only the government but also banks should voluntarily come up with ways to ease the interest burden on young people.

Ahn's remarks align with the growing criticism within the ruling party regarding the banking sector's interest profiteering. On the 2nd, Sung Il-jong, chairman of the Policy Committee, also argued at a party floor countermeasure meeting, "(Banks) should waive prepayment penalties like the government’s Safe Conversion Loan."

He urged, "Due to high interest rates, banks are posting unprecedented surplus profits," adding, "I hope they actively waive prepayment penalties to help financially vulnerable groups overcome the current crisis." The ruling party and government plan to hold a party-government meeting on high interest rates during the week to find ways to alleviate the public's interest burden.

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