FSS "Managing Delinquency Rates in Secondary Financial Sector... Special Crackdown on Illegal Leading Rooms"

Financial Situation Review Meeting on the 15th

[Image source=Yonhap News]

Lee Bok-hyun, Governor of the Financial Supervisory Service, announced that he will encourage the management of delinquent loan rates and the clearance of overdue claims through on-site inspections of a total of 27 companies, including savings banks, credit specialized companies, and mutual finance institutions.

On the 15th, during a financial situation review meeting, Governor Lee stated, "The delinquency rate of financial companies is lower compared to past crisis situations and is at a manageable level, but it may continue to rise for the time being."

The bank delinquency rate rose from 0.25% at the end of last year to 0.33% at the end of March this year. The long-term average delinquency rate is 0.78%. During the same period, the delinquency rate of savings banks increased significantly from 3.41% to 5.07%.

Governor Lee said, "The U.S. FOMC froze the benchmark interest rate for the first time in 15 months the day before yesterday, and recently our financial market has also shown a stable trend. However, since there remains a possibility of additional rate hikes and there are latent risks such as concerns over delayed recovery of the domestic real economy, please continue to thoroughly manage risk factors so that the financial market can achieve a soft landing."

He also said, "Please complete the annual credit risk evaluation of large and small and medium-sized enterprises without fail to accurately diagnose signs of corporate insolvency and support post-management before insolvency materializes."

He added, "To dispel concerns about stock market disruption and enhance investor confidence, we have expanded the dedicated investigation personnel by 17 in June and reorganized the organization. In July, we will increase the number by 8 more to strengthen the capacity for investigating unfair trading, and we will carry out special crackdowns on illegal leading chat rooms and others without fail by the end of the year."

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