Go Seung-beom: "'Gray Rhino' Realization... Ensuring Financial Market Stability"

Financial Services Commission Chairman Ko Seung-beom Holds Meeting with Economic and Financial Experts

Koh Seung-beom, Chairman of the Financial Services Commission

[Asia Economy Reporter Kwangho Lee] Ko Seung-beom, Chairman of the Financial Services Commission, stated on the 13th, "Potential risks that were likened to gray rhinos are materializing one by one," and added, "We will consistently continue efforts to 'timely detect,' accurately analyze, and proactively block domestic and international risk factors."

Chairman Ko made these remarks during a meeting with economic and financial market experts held at the 14th-floor seminar room of the Korea Federation of Banks in Myeong-dong, Jung-gu, Seoul.

He diagnosed, "Until November last year, the U.S. Federal Open Market Committee (FOMC) maintained the stance that 'inflation is temporary,' but starting in December, it accelerated tapering and is now discussing interest rate hikes and quantitative tightening. Additionally, issues such as the ongoing COVID-19 situation, the slowdown in China's economy, and U.S.-China conflicts are becoming more visible, which is expected to impact our economy and financial markets in the new year."

He continued, "Many people recently ask me, 'As the Chairman of the Financial Services Commission, what is the most important agenda this year?' and each time I answer, 'Financial stability, just like last year.' Under the consistent goal of financial stability, we will expand the scope to include household debt, self-employed individuals, and financial sector-originated risks to minimize shocks caused by changing circumstances going forward," he emphasized.

He also urged, "The financial sector must coldly assess the current economic and financial conditions and be fully prepared for increasing uncertainty and accumulated financial imbalances. It is essential to maintain crisis response capacity without impairing loss absorption capabilities such as loan loss provisions."