Go Seung-beom Meets Lee Ju-yeol... Expected Discussions on 'Household Debt and Electronic Financial Transactions Act'

Financial Services Commission Chairman Ko Seung-beom and World Economy Research Institute Chairman Jeon Gwang-woo are having a conversation at the World Economy Research Institute-Shinhan Financial Group International Conference celebrating the 20th anniversary of Shinhan Financial Group, held on the 2nd at Lotte Hotel in Jung-gu, Seoul. Photo by Moon Ho-nam munonam@

[Asia Economy Reporter Jin-ho Kim] Go Seung-beom, Chairman of the Financial Services Commission, will meet with Lee Ju-yeol, Governor of the Bank of Korea, today. Attention is focused on whether they can untangle the complicated issues, as the FSC and the Bank of Korea have repeatedly clashed over the amendment of the Electronic Financial Transactions Act. They are also expected to exchange views on household debt, the biggest risk factor for the Korean economy.

According to financial authorities on the 3rd, Chairman Go will hold a meeting with Governor Lee this morning at the Bank of Korea’s main conference room in Jung-gu, Seoul. This is the first time the FSC Chairman has directly visited the Bank of Korea to communicate.

The meeting between the two leaders is noteworthy as it takes place while the amendment bill of the Electronic Financial Transactions Act, which the FSC has been focusing on, remains stalled. Although it is one of the key bills for digital innovation in the financial industry, proper discussions in the National Assembly have not been held due to opposition from the Bank of Korea and others.

However, there are expectations of a shift in the atmosphere following Chairman Go’s appointment. Chairman Go has worked closely with Governor Lee for a long time as a member of the Bank of Korea’s Monetary Policy Committee. Given his high understanding of the central bank’s core duties, it is anticipated that he will serve as a bridge between the two institutions, which have so far been on parallel tracks.

Discussions on household debt, which has surpassed 1,800 trillion won, are also expected. In his inaugural speech, Chairman Go stated that "close policy coordination with policy partners such as the Bank of Korea is necessary." Especially as the Bank of Korea has hinted at additional base rate hikes within the year, measures to ensure that the rapidly increasing household debt does not undermine financial stability are likely to be considered.