Lee Bok-hyun Moves for 'Interest Rate Cut'... Four Major Banks' Generous Gift

On the 30th of last month, Lee Bok-hyun, Governor of the Financial Supervisory Service, who attended the opening ceremony of Woori Bank Senior Plus Branch No. 2, is surrounded by reporters answering questions. Photo by Heo Young-han younghan@

Major commercial banks, which had been criticized socially for profiting from interest rates, have started to lower their loan interest rates. Marking the visit of Lee Bok-hyun, Governor of the Financial Supervisory Service, banks have consecutively unveiled 'generous gifts.'

According to the financial sector on the 1st, Woori Bank announced on the 30th of last month that it would reduce the interest rates on all household loan products by up to 0.7 percentage points. This announcement from Woori Bank came at the opening ceremony of the 'Senior Plus' branch attended by Governor Lee and Im Jong-ryong, Chairman of Woori Financial Group. In addition to the interest rate cuts, Woori Bank introduced a win-win financial package worth a total of 20 trillion won, including leap loans to support youth independence and emergency loans for small business owners. Customers will receive benefits worth 205 billion won annually.

The four major commercial banks?KB Kookmin, Shinhan, Hana, and Woori Bank?rolled out financial support measures including household loan interest rate cuts timed with Governor Lee's visit. On February 23, Governor Lee visited the Hana Bank headquarters in Jung-gu, Seoul, and held an on-site meeting with financial consumers and experts to expand win-win finance. Hana Bank lowered the interest rate on its low-income financial product, Sae-hee-mang Holssi Loan, by up to 1 percentage point.

Subsequently, on the 9th of last month, Governor Lee held an 'on-site meeting with financial consumers to expand win-win finance' at KB Kookmin Bank headquarters in Yeouido, Seoul. On that day, KB Kookmin Bank announced it would reduce personal credit loan interest rates by up to 0.5 percentage points and reduce jeonse loans and mortgage loan interest rates by 0.3 percentage points. A similar situation occurred at Shinhan Bank. On the 24th of last month, Governor Lee visited Shinhan Bank headquarters in Jung-gu, Seoul, and held a 'win-win finance meeting.' At this event, Shinhan Bank introduced financial support measures totaling 162.3 billion won, including household loan interest rate cuts.

Some view Governor Lee's actions as a political event. In fact, in the financial sector, rumors persist that Governor Lee, classified as part of President Yoon Suk-yeol's faction, will run in next year's general election. Recently, there have even been rumors that Governor Lee has relocated his residence to prepare for the election.

However, Governor Lee has so far denied these rumors. On the 30th of last month, at the opening ceremony of Woori Bank's Senior Plus branch, he told reporters, "I am still living in the house where I have lived for 10 years," adding, "I have not moved my address and have no plans to move in the future." He also mentioned at a recent closed executive meeting, "I will stick to the Financial Supervisory Service like a leech and work hard until the end."