Assemblyman Kim Kyung-man, "No Plan to Transfer Industrial Bank to Ministry of SMEs and Startups"

Kim Kyung-man, Democratic Party of Korea lawmaker

[Asia Economy Reporter Kim Min-young] Kim Kyung-man, a member of the Democratic Party of Korea, stated that there has been "no initiative" regarding the transfer of IBK Industrial Bank of Korea to the Ministry of SMEs and Startups.

In a press release on the 14th, Rep. Kim said, "Before the 21st National Assembly convened, in an interview as a newly elected member, I mentioned the need to change the jurisdiction of IBK as a solution to the chronic difficulties small businesses face in 'financing' and the complaints from the field during the 'COVID loans' process," adding, "However, after taking office, I judged that matters related to governance restructuring require in-depth research and sufficient consultation among stakeholders, and I clearly state that my office has not initiated any bill on this matter."

Rep. Kim also added, "Although the facts regarding the transfer of IBK have become clear, the issue of 'financing problems' for small and medium enterprises and small business owners still remains," and "I hope financial authorities and the financial sector will listen more carefully to the voices from the field of small businesses and small business owners."

Earlier, the IBK branch of the National Financial Industry Labor Union issued a statement opposing the transfer of the main supervisory authority from the Financial Services Commission to the Ministry of SMEs and Startups. The union stated in the declaration, "The biggest problem is the 'politicization of IBK' that arises from leaving a specialized financial supervisory agency," and "It could become a channel for the government to distribute money. Before discussing the advantages of transferring to the Ministry of SMEs and Startups, it is necessary to discuss a system that is not swayed by populism depending on conservative or progressive administrations." The union immediately issued a statement opposing the possibility of the main supervisory authority transfer initiated by the National Assembly.

Rep. Kim, who is from the Korea Federation of SMEs, had argued through media interviews right after being elected that the jurisdiction of IBK, along with the Korea Credit Guarantee Fund, should be transferred to the Ministry of SMEs and Startups. It is reported that there was significant opposition to the bill from within the Korea Credit Guarantee Fund, IBK, and financial authorities. A union official said, "It is fortunate that the transfer of the main supervisory authority has been canceled."