"Damaged Trust Must Be Restored Quickly"
[Asia Economy Reporters Kim Hyo-jin and Kim Min-young] Yoon Seok-heon, Governor of the Financial Supervisory Service (FSS), on the 26th urged the banking sector to actively remedy financial consumer damages caused by incomplete fund sales.
Governor Yoon made these remarks during the 'FSS Governor-Invited Bank Presidents Meeting' hosted by the Korea Federation of Banks, held at Front1, a startup complex support space in Mapo-gu, Seoul, in the afternoon.
He also emphasized, "It is necessary to promptly restore the trust damaged by incomplete fund sales in the banking sector," adding, "Going forward, the fund sales practices of banks must be improved to prevent a recurrence of recent private equity fund incidents."
He further urged the banking sector to faithfully perform its role as a financial intermediary to overcome difficulties caused by the novel coronavirus disease (COVID-19).
He requested efforts to firmly maintain loss absorption capacity by sufficiently setting aside loan loss provisions in preparation for the possibility of future deterioration, while ensuring smooth funding supply to new growth industries.
Governor Yoon also mentioned, "The government is promoting the 'Green New Deal' as one pillar of the 'Korean New Deal,'" and expressed the view that the banking sector needs to recognize the importance of finance in responding to climate change and strengthen measures such as proactively managing climate risks.
He added, "With the digitalization of finance and the expansion of non-face-to-face transactions, branch closures are increasing, so please make efforts to prevent inconvenience to digitally vulnerable groups such as the elderly during this process."
Kim Tae-young, Chairman of the Korea Federation of Banks, introduced that the banking sector is making various efforts to contribute to revitalizing the Korean economy amid difficult economic conditions such as COVID-19, low growth, low interest rates, low birthrate, and aging population.
According to the Korea Federation of Banks, the banking sector has provided a total of 205 trillion won in financial support over the past eight months, including 104 trillion won in new loans and 100 trillion won in loan maturity extensions to small business owners and SMEs affected by COVID-19.
They also stated that they are doing their best to support the real economy by expanding 'productive finance,' such as supplying 100 trillion won to innovative, venture, and small businesses by next year through movable property finance, technology finance, and IP finance.
Chairman Kim emphasized, "In particular, recently, to support the Korean New Deal, the banking sector plans to play an active role so that the 'K-New Deal' can achieve visible results quickly, announcing a support plan of 70 trillion won centered on the five major financial holding companies."
He also explained, "The banking sector plans to thoroughly prepare for the post-COVID-19 era by strengthening digital capabilities such as activating open banking, promoting entry into the MyData industry, and enhancing platform competitiveness to secure competitiveness in the financial industry."
The Korea Federation of Banks held a meeting with bank presidents invited by the Financial Supervisory Service Governor on the 26th at Front1, a startup complex support space in Mapo-gu, Seoul. Attendees of the meeting, including Kim Tae-young, Chairman of the Korea Federation of Banks (far left), and Yoon Seok-heon, Governor of the Financial Supervisory Service (second from left), are touring the startup innovation spaces of the companies residing in Front1. (Photo by Korea Federation of Banks)
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