[2024 National Audit] Lee Bok-hyun, Financial Supervisory Service Chief, Says "Major Financial Accidents Require Root Cause Elimination... Will Also Establish Accountability Structure"

Greeting at the National Assembly Political Affairs Committee Work Report on the 17th
"Prompt Promotion of Restructuring for Poor PF Project Sites"
"Household Debt Management through Establishing Loan Practices Focused on Repayment Ability"

Lee Bok-hyun, Governor of the Financial Supervisory Service, stated on the 17th, "We will thoroughly investigate the causes of serious financial accidents that undermine trust in the financial industry and hold those responsible strictly accountable."

At the National Assembly's Finance and Economy Committee audit on the same day, Governor Lee said, "We will do our best to prevent recurrence by supporting and inspecting the establishment of accountability structures and strengthening internal controls."

He added, "Despite the recent stabilization of global inflation and the shift of monetary policies in various countries toward easing, external uncertainties are escalating due to the Ukraine war, conflicts in the Middle East, and the upcoming U.S. presidential election. We are continuously working to enhance financial companies' loss absorption capacity and risk management capabilities to ensure the stability of the financial system."

He continued, "To ensure the smooth landing of real estate project financing (PF), we conducted evaluations of all projects and are swiftly implementing follow-up measures such as restructuring for distressed projects based on the evaluation results." Regarding household debt management, he said, "We are continuously promoting the establishment of loan practices centered on repayment ability and qualitative structural improvements through close cooperation with related agencies."

Furthermore, he mentioned, "Through the operation of the Fair Finance Promotion Committee, we are continuously improving transaction practices that the public can feel, while also making multifaceted efforts to strengthen the rights of vulnerable consumers, such as easing debt collection on long-term overdue telecommunications bonds."

Regarding the establishment of order in the financial market, he stated, "To enhance trust in the capital market, we are responding firmly and strictly to illegal activities such as unlawful short selling and employees pursuing private interests. We are also continuously improving infrastructure to establish market discipline, including building a short selling IT system and improving listing and disclosure systems."

Finally, to support responsible innovation in the financial industry, he explained, "We will continue institutional support such as rational improvements to network separation regulations and creating an environment for AI and data utilization, while also doing our utmost to ensure efforts to secure financial companies' responsibility and stability, including checking virtual asset user protection and establishing autonomous security systems in the financial sector, are not neglected."

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