[2025 National Audit] Lee Changyong: "Raising High-Credit Rates to Lower Low-Credit Rates? Too Many Problems"

Lee Changyong, Governor of the Bank of Korea, expressed a negative stance on October 29 regarding a policy proposal to raise interest rates for high-credit borrowers in order to lower them for low-credit borrowers.

Lee Changyong, Governor of the Bank of Korea Yonhap News

Governor Lee attended a comprehensive National Assembly audit by the Strategy and Finance Committee on this day. When Assemblyman Chun Haram of the Reform Party asked, "Do you agree with the president's statement that even raising interest rates for high-credit borrowers by 0.1% would allow for lowering rates for low-credit borrowers?" Lee replied, "It's difficult for me to comment because I don't fully understand the background, but I believe the president's intention was to help those struggling with poor credit."

When Assemblyman Chun further inquired about potential problems with artificially adjusting interest rates, Lee responded, "There are so many issues that it's difficult to mention them all," adding, "There are problems such as what is commonly referred to as moral hazard."

He also stated, "However, from the perspective of rescuing some individuals who have become credit delinquents and have no possibility of recovering, there is a need for policy intervention. For example, if a young entrepreneur fails in business, removing them from the list of credit delinquents and giving them another chance to restart does not go against economic principles."

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