Lee Bok-hyun "Must Remove Calluses from Real Estate PF... Construction and Finance Must Endure Noise"

Remarks After the Meeting Among the Financial Services Commission, Financial Supervisory Service, and Securities Firms on the 24th

Lee Bok-hyun, Governor of the Financial Supervisory Service, is delivering opening remarks at the "Securities Industry CEO Meeting" held on the 24th at the Korea Financial Investment Association in Yeouido, Seoul. Photo by Kang Jin-hyung aymsdream@

Lee Bok-hyun, Governor of the Financial Supervisory Service (FSS), reiterated his strong commitment to addressing real estate financing (PF) risks, even if it means enduring difficulties faced by construction companies and financial institutions.

On the 24th, after the 'Financial Services Commission-Financial Supervisory Service-Securities Industry Meeting' held at the Korea Financial Investment Association in Yeouido, Yeongdeungpo-gu, Seoul, Governor Lee told reporters, "In responding to real estate PF, we are prepared to endure noise from many construction companies and financial institutions."

Governor Lee said, "Just as new skin grows by shedding calluses, please expect that we will proceed with (real estate PF risk management) with very strong intensity," adding, "Even if some financial institutions and construction companies face difficulties in the process, we are willing to endure them."

He continued, "That is necessary so that capital can be invested more productively," and added, "The PF restructuring will proceed with much stronger intensity than what has been mentioned."

Regarding the Ministry of Economy and Finance's plan to require PF developers to maintain a minimum equity ratio of 20% against total project funds, he said, "They mentioned 20% (equity ratio against total project funds), and the FSS shares the same direction."

Governor Lee emphasized, "Rather, they should be able to take nearly 100% responsibility," and added, "It is undesirable to engage in real estate development and implementation without such a condition."

He also stated, "To resolve real estate PF and establish a desirable real estate market in the future, the financial sector will take strong measures," adding, "We are also coordinating well with the Ministry of Economy and Finance and the Financial Services Commission."

Meanwhile, on the same day, Governor Lee held the first official meeting with CEOs of the securities industry, attended by Kim Ju-hyun, Chairman of the Financial Services Commission, and Sohn Byung-doo, Chairman of the Korea Exchange. The focus was on devising ways for the financial investment industry to restore consumer trust that has been eroded.

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