Lee Bok-hyun "Household Loan Expansion and Special Promotions Should Be Restrained to Manage Soundness"

Lee Bok-hyun, Governor of the Financial Supervisory Service [Image source=Yonhap News]

Lee Bok-hyun, Governor of the Financial Supervisory Service, emphasized on the 24th that financial companies should refrain from external competition such as expanding household loans and handling high-interest special deposit products, and strengthen asset soundness management.

Governor Lee chaired a financial situation review meeting that morning and stated, "With concerns over prolonged high interest rates in the United States and cases of credit rating downgrades of regional banks in the US, stable management and soundness control of financial companies are important." At the meeting, trends and risk factors in domestic and international financial markets were reviewed following the Bank of Korea's Monetary Policy Committee's decision to keep the base interest rate unchanged.

Governor Lee emphasized, "Although the Korean financial market has generally been stable recently, risks must be thoroughly managed considering the instability factors stemming from the G2 (US-China)."

He added that while direct exposure of domestic financial companies to Chinese real estate developers is minimal, delayed recovery of the Chinese economy could affect the domestic financial market, necessitating proactive management.

Governor Lee urged, "Strengthen checks on risk factors that may arise if instability in the Chinese stock market continues, closely monitor financial difficulties of export companies, and prepare proactively."

He also requested, "Continue close monitoring of international financial market trends and maintain a close cooperation system with related agencies to ensure timely implementation of market stabilization measures if necessary."

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