Lee Chan-jin, FSS Chief: "We Will Establish a Culture of Inclusive Finance in the Banking Sector"

2026 Financial Supervisory Advisory Committee General Meeting

Emphasis on Productive and Inclusive Finance

"Efforts to Ensure Financial Market Stability"

Lee Chan-jin, Governor of the Financial Supervisory Service, has urged the financial sector to establish a culture of inclusive finance and to strengthen the social safety net function of finance for ordinary citizens and vulnerable groups, as uncertainty from the Middle East continues for an extended period.

Lee Chan-jin, Governor of the Financial Supervisory Service, is giving opening remarks at a meeting with chief executive officers (CEOs) of securities firms held at the Korea Financial Investment Association in Yeongdeungpo-gu, Seoul, in February 2026. 2026.02.10 Photo by Dongju Yoon

On the 15th, at the 2026 Financial Supervisory Advisory Committee General Meeting held at the Bankers' Club in Jung-gu, Seoul, Governor Lee stated, "If high exchange rates and high inflation persist for a long time, business operations will inevitably contract, and the hardships faced by ordinary citizens and vulnerable groups will be exacerbated." He added, "We will strive to support both productive finance and inclusive finance, while also working toward financial market stability and the protection of financial consumers."

He said, "We will encourage the banking sector to foster a culture of inclusive finance, and support savings banks and mutual finance institutions so they can faithfully fulfill their original roles as financial institutions for ordinary people and local communities." He also announced plans to strengthen responses to financial crimes that threaten the daily lives of ordinary citizens and vulnerable groups, through the government-wide 'Comprehensive Countermeasures to Eradicate Voice Phishing' and the 'One-Stop Comprehensive and Dedicated Support Service for Illegal Private Lending.'

Governor Lee emphasized that efforts to support productive finance and stabilize the financial market will be pursued in parallel.

He noted, "Financial companies should provide funds to productive sectors for the growth of our economy," and continued, "Through thorough inspections of lending practices in the financial sector and the introduction of regulatory limits on project financing (PF) loans, we will closely manage risk factors related to household debt and real estate project financing, and work to alleviate the concentration of funds in real estate."

The financial authorities are supporting productive finance by improving capital regulations. Plans include rationalizing the loss recognition system for operational and market risks in the banking sector and refining the insurance sector’s solvency ratio (K-ICS) calculation system, thereby expanding the capacity of financial companies to invest in productive sectors.

Additionally, the authorities explained that they will actively pursue a shift toward a preventive, consumer protection-focused financial system by analyzing risk factors throughout the lifecycle of financial products and reinforcing consumer protection at each stage.

A total of about 140 people attended the general meeting this day, including 92 advisory committee members. The Financial Supervisory Service notably increased the number of consumer-related committee members to 25 (27.2%), matching the levels of academia and research institutions (25 people, 27.2%) and the financial sector (25 people, 27.2%). The intention is to more broadly reflect consumer opinions and establish a balanced system for collecting feedback. The Financial Supervisory Advisory Committee holds a general meeting once a year and operates nine subcommittee meetings every half-year.

At this year's meeting, Deputy Governor for Consumer Protection Kim Uk-bae presented the Financial Supervisory Service’s major initiatives for advancing consumer protection and stated that efforts to improve related systems would continue. Deputy Governor for Disclosure and Investigation Lee Seung-woo outlined the directions for capital market supervision to realize the Korea Premium and explained key supervisory initiatives in corporate disclosure, investigations and prosecutions of unfair trading, and accounting oversight.

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