Financial Supervisory Service Chief: "Banks' Interest Income Alone 60 Trillion Won, Questioning Whether Innovation Matches That of Semiconductors"

President Yoon, After 'Bank Servitude' Remark
Lee Bok-hyun, Financial Supervisory Service Chief, Repeatedly Targets Banks

Lee Bok-hyun, Governor of the Financial Supervisory Service, is delivering opening remarks at the 'Accounting Firm CEO Meeting' held on the 6th at the Korea Institute of Certified Public Accountants building in Seodaemun-gu, Seoul. Photo by Jinhyung Kang aymsdream@

Lee Bok-hyun, Governor of the Financial Supervisory Service, raised concerns, saying, "While I acknowledge that banks have made various efforts, I question whether they have innovated as diversely as the semiconductor or automobile industries to have earned 60 trillion won in interest income." This comment relates to the recent focus on win-win finance in the banking sector following President Yoon Suk-yeol's remark about banks being 'servants of labor.'

After a meeting with accounting firm CEOs held on the 6th at the Korea Institute of Certified Public Accountants building in Seoul, Governor Lee told reporters, "This year, the banking sector's interest income is expected to reach around 60 trillion won, likely the highest ever."

He continued, "When comparing third-quarter operating profits, the banking sector's operating profit is greater than the combined profits of Samsung Electronics, LG Electronics, and Hyundai Motor Company," adding, "Even companies competing on the international stage in the semiconductor and automobile industries, which are making various innovative efforts, have operating profit levels like this."

Governor Lee emphasized, "In the U.S., fixed interest rates are standard, so interest rates have caps, and the shocks from interest rate fluctuations are borne by banks that fail in risk management. However, in our case, this has changed so that individuals who cannot manage risks fully bear the shocks," adding, "We need to consider the structure where banks with risk management and market analysis capabilities pass all the interest rate burdens onto consumers."

Regarding the proposal of a windfall tax bill on banks in the National Assembly, he said, "Whether a windfall tax qualifies as a tax is a matter of criminal law," but added, "We need to carefully consider the economic effects, corporate sustainability, and policy aspects, and based on that, various issues should be discussed."

He also pointed out the issue of bank branch closures. Governor Lee stated, "Since 2020, nearly 600 bank branches have disappeared," and added, "Despite my remarks about the need to gradually improve financial accessibility for vulnerable groups such as the elderly during difficult times, KB Kookmin Bank alone closed more than 60 branches in the first half of this year."

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