"Banks Are 'Quasi-Public Institutions'" - Lee Again Stresses Inclusive Finance...Tells Kim Yongbeom, "Do as You Intend"

President Lee Presides Over Cabinet Meeting
Supports Policy Chief Kim Yongbeom's Comments on Social Media
"Solely Pursuing Profit Is the Real Problem"
"Inclusive Finance Is a Core Duty of Financial Institutions"

President Lee Jaemyung emphasized the need to expand inclusive finance, criticizing the lack of public responsibility among banks and other financial institutions that prioritize making money above all else. He also publicly supported Kim Yongbeom, policy chief at the Blue House, who recently commented on social media during the holiday period about the quasi-public nature of banks.

Yonhap News Agency

On May 6, presiding over a cabinet meeting and an emergency economic review meeting at the Blue House, President Lee said, "Did the policy chief write an op-ed in the media? He pointed out that financial institutions are quasi-public agencies, and I think that's a valid observation." When Kim responded that he had received a lot of criticism after posting the article, President Lee reassured him by saying, "There's nothing to be criticized for that. You have the authority, so proceed as you see fit."

President Lee further stated, "Financial institutions that obtain funding based on the state's currency issuance power and earn interest income through lending have a fundamentally different nature. More than half of their structure is dedicated to fulfilling public roles."

He also addressed the lending practices of banks that focus primarily on high-credit customers. President Lee said, "It is not desirable for banks to focus on top credit ratings, forcing those with medium or low credit to rely on secondary financial institutions or private lenders. Finance is a system that spreads risk and reflects costs on average, so it is not appropriate to selectively engage in only the most profitable operations." Regarding specialized banks such as Korea Housing Bank, Korea Development Bank, and Industrial Bank of Korea, he added, "It is problematic for financial companies to see making money as their sole purpose for existence. Finance is part of maintaining national order."

Accordingly, President Lee stressed the importance of financial services for ordinary citizens. He said, "Access to financial services for the general public is becoming increasingly difficult. Since inclusive finance is one of the key responsibilities of financial institutions, we must continuously ensure that ordinary people are not excluded. This needs to be constantly reinforced."

Meanwhile, policy chief Kim wrote on his Facebook page from May 1 to 3 that banks are not purely private enterprises, stating, "Banks are quasi-public institutions that, operating under a government license, benefit from public safety nets and receive bailouts in times of crisis." He further explained, "Demanding social roles that correspond to these privileges is not market intervention, but rather the fulfillment of a contract."

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