Lee Bok-hyun "Financial Investment Firms Must Thoroughly Inspect Internal Control Status"

Lee Bok-hyun, Governor of the Financial Supervisory Service, recently stated on the 20th that unhealthy business practices by financial investment firms continue, and internal control situations must be thoroughly inspected.

At an executive meeting that day, Governor Lee said, "Unhealthy business practices by financial investment firms supporting the capital market, such as securities companies, asset management firms, and private equity funds (PEF), continue to occur," adding, "This is closely linked to unfair trading in the capital market, such as the recent stock price lower limit incident, which can significantly undermine investor confidence."

He continued, "Financial investment firms themselves must thoroughly re-examine their internal control situations to prevent moral hazard among employees," and said, "Financial authorities need to make efforts to prevent unhealthy business practices proactively based on the newly reorganized organizational system, and also respond swiftly and thoroughly in a reactive manner."

Governor Lee also stated, "Regarding the recent rise in delinquency rates in the secondary financial sector, including savings banks, mutual finance, and card companies, thorough risk management such as sufficient provision setting must be ensured," and added, "Financial institutions such as banks should also make joint efforts for win-win finance by promptly implementing prepared financial supply plans to prevent financial services for low-credit borrowers from shrinking during economic downturns."

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