Financial Services Commission Chairman: "Promoting Smooth Landing of PF... Enhancing Financial Firms' Loss Absorption Capacity"

Chairman Kim Juhyun's New Year's Address

Kim Ju-hyun, Chairman of the Financial Services Commission, said on the 29th, "(In the new year) we will strengthen project feasibility assessments, activate normalization funds, diversify the scope of business guarantees, and at the same time expand the loss absorption capacity of financial institutions and improve the soundness regulations of real estate-related financial institutions to ensure the smooth landing of real estate project financing (PF)."

Financial Services Commission Chairman Kim Ju-hyun is speaking at the Banking Sector Livelihood Finance Support Meeting held at the Korea Federation of Banks in Jung-gu, Seoul on the 21st. Photo by Jo Yong-jun jun21@

In his New Year's address announced that day, Chairman Kim stated, "Although a decline in interest rates is expected in the new year, the timing and speed of the decline remain variable, so we cannot neglect the normalization and stabilization of real estate PF, the soundness of the secondary financial sector, and household debt."

Regarding household debt risks, he added, "While managing the pace of increase, we will improve both the quantity and quality of debt through solidifying DSR regulations, establishing a private long-term fixed-rate mortgage base, and strengthening the management of jeonse and credit loans," emphasizing, "Through these comprehensive measures, we will enhance the soundness and resilience of our financial system so that it does not amplify shocks to the real economy but rather absorbs and mitigates them."

Chairman Kim also spoke about measures for self-employed and small business owners, saying, "To this end, we will promptly reduce the interest burden on the self-employed and small business owners through a four-type support package, and support the recovery and rehabilitation of vulnerable borrowers through the supply of microfinance and the enforcement of the Debtor Protection Act," adding, "We will also strive to provide tailored financial support to youth, mortgage borrowers, and the elderly."

Chairman Kim stated, "As Abraham Lincoln, the former U.S. president, emphasized, without public support, even rational policies are bound to fail, and with public understanding and support, even the most difficult policies can succeed," and he expressed confidence, saying, "If the people and the government unite with one heart and mind, I have no doubt that we will bear valuable fruits even in difficult circumstances."

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