Medium-sized Business Sector Requests FSC for "Improvement of Loan-Deposit Interest Rate Spread and Promotion of Bank Coexistence Culture"

Meeting with Lee Bok-hyun, Financial Supervisory Service Governor, on the 7th
Kim Ki-moon "Hopes for Establishment of Cooperation Channel"

The small and medium-sized enterprises (SME) sector requested the Financial Supervisory Service (FSS) to improve the interest rate spread between deposits and loans, introduce an SME win-win finance index, and foster a win-win culture among banks.

Lee Bok-hyun, Governor of the Financial Supervisory Service, is delivering a greeting at the open discussion for the advancement of the capital market held on September 12 at the FKI Tower Conference Center in Yeouido, Seoul. Photo by Yonhap News

The Korea Federation of SMEs announced on the morning of the 7th that it held a ‘Meeting with SMEs Invited by Lee Bok-hyun, Governor of the Financial Supervisory Service’ at the Federation’s office in Yeouido, Seoul.

The meeting was attended by Governor Lee, Lee Jae-geun, CEO of KB Kookmin Bank, Kim Sung-tae, CEO of IBK Industrial Bank of Korea, among others. From the SME sector, eight representatives attended, including Kim Ki-moon, Chairman of the Korea Federation of SMEs; Ko Byung-heon, Chairman of the Korea Amusement Industry Cooperative; Han Byung-jun, Chairman of the Korea Information Industry Cooperative; Lee Jae-kwang, Chairman of the Korea Electric Energy Industry Cooperative; and Yang Seung-yong, Chairman of the Korea Automobile Inspection and Maintenance Business Cooperative Federation.

At the meeting, the SME sector requested the FSS to improve the expanded interest rate spread despite the base rate cut, address the unfair joint guarantee issues faced by subcontractors related to real estate project financing (PF), and foster a win-win culture among banks through the introduction of an SME win-win finance index. Kim Ki-moon, Chairman of the Korea Federation of SMEs, said, “The FSS Governor emphasized that ‘banks should not take away umbrellas when it rains,’ and I would like to make a few suggestions in this regard.” He added, “During my previous term as chairman, I recall cooperating with the FSS to improve the banks’ practice of forced loan tying, and I hope that this meeting will serve as an opportunity to establish a cooperation channel between the Korea Federation of SMEs and the FSS.”

Additionally, discussions were held on improving financial sector loan and guarantee systems, reforming automobile and fire insurance systems, and easing regulations to promote fintech growth.

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