Financial Supervisory Service Chief: "Must Manage Risks in Real Estate PF... Focused Monitoring of Malicious Rumors"

by Sim NaYoung

Published 18 Apr.2023 10:31(KST)

[Image source=Yonhap News]

Lee Bok-hyun, Governor of the Financial Supervisory Service (FSS), emphasized, "Responding to inflation and stabilizing the financial market are important policy goals that must be achieved simultaneously. To this end, the Ministry of Economy and Finance, the Bank of Korea, the Financial Services Commission, and the FSS maintain a close cooperative system among policy and financial authorities, and especially the role of the FSS, which is in direct contact with the market, has become crucial."

At the executive meeting held on the 18th, he stated, "Considering the recent developments such as the Silicon Valley Bank (SVB) and Credit Suisse (CS) incidents, proactive responses to risk factors are very important. In particular, more meticulous and swift responses that can operate even in a digitalized market environment are necessary," and added, "we must thoroughly manage and respond to risks in real estate project financing (PF), and strengthen cooperation with related agencies such as the Bank of Korea and the Korea Deposit Insurance Corporation through joint inspections and stress tests."

He also said, "As uncertainties in the domestic and international economy and financial markets continue, concerns about the soundness of certain financial sectors or companies are growing, and there have been cases where false information about specific companies disrupts the market," urging, "based on a close cooperative system with the Financial Services Commission and investigative agencies, please make every effort to resolve market instability factors and block disruptive activities."

The FSS has also strengthened its dedicated response system by directing ▲focused monitoring of malicious rumor dissemination ▲minimizing market confusion through accurate communication of the soundness status of financial companies related to malicious rumors ▲immediate commencement of investigations upon confirmation of unfair trading activities.