2023-07-17 05:44:00
Lee Bok-hyeon, head of the Financial Supervisory Service, gives a greeting at the launching event of ‘Shinhan Card Small Business Together, Growth Solution’ held at Shinhan Card headquarters in Jung-gu, Seoul on the 17th. /news1
Lee Bok-hyeon, head of the Financial Supervisory Service, said, “I agree 100%” with Bank of Korea Governor Lee Chang-yong’s recent expression of concern over the rising household debt.
Director Lee met with reporters after the ‘Small Business Together, Growth Solution’ event held at the headquarters of Shinhan Card on the morning of the 17th and said, “I have carefully reviewed and familiarized myself with the BOK’s concerns related to the announcement of the Monetary Policy Committee last week and what President Lee said in this regard. ”he said.
Director Lee said, “I agree with 100%, including the difficulties of the monetary authorities that have no choice but to keep the upper end of the interest rate open, and concerns about excessive administration of household loans, and are discussing related matters in conference calls on a weekly or daily working level basis.” He said, “Since there are side effects that can be caused in the process of reducing household loans, we are leading the trend by closely consulting with the Ministry of Strategy and Finance, the Financial Services Commission, and the Bank of Korea on managing household loans.”
As a measure to manage household loans, Director Lee announced that he would take micro-policy responses. Director Lee said, “Even in the situation of the explosive increase in household loans in 2021, we did not adjust (household loans) as interest rates, but managed the expansion of household loans as a microscopic administrative adjustment.” If policy means are a big knife, what we can do microscopically at the supervisory and administrative level is a smaller policy instrument,” he emphasized.
In addition, Director Lee expressed his position that it was a necessary measure in response to the recent reverse discrimination controversy over the overdue debt waiver program in the banking sector. Director Lee said, “(The Overdue Debt Waiver Program) is a program that considers efforts to coexist with the vulnerable, and similar programs have been repeated every time the economy is in a downturn.” ”he said.
“We are already limiting the target to vulnerable borrowers or those who are willing to repay in good faith, and to prevent moral hazard, we are reducing the tax on the premise of interest or principal repayment of at least 1%,” he said. For those who could be in arrears for ~3 months, we need a much-needed remedy,” he added.
Regarding the question of whether the TF guidelines could have an impact on the appointment of the CEO of KB Financial Holdings amid the recent launch of a task force (TF) for improving governance in the financial sector, Director Lee said, “(The guidelines) are specific to a specific person or a specific person. Things that have an impact on candidates must be minimized,” he said, “as KB Financial is the first event after various governance issues at the end of last year and early this year, I hope you will set an advanced and leading precedent.”
Director Lee promised support from the financial sector in relation to the damage caused by the recent torrential rain. Director Lee said, “We have requested the financial sector to review various measures, such as payment of insurance money, supply of financial funds related to the normal operation of damaged companies, and activation of various financial supports for reconstruction.” We will focus on the vulnerable group related to natural disasters according to the situation and see if it is implemented in the third quarter.”
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