Kim So-young, Vice Chairman of the Financial Services Commission, "Banks, please assist with debt restructuring for self-employed and easing LTV regulations for youth"

"Expand Loss Absorption Capacity and Improve Crisis Response System"

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho (center), Kim So-young, Vice Chairman of the Financial Services Commission (third from the left), and the chairmen of the five major financial holding companies are posing for a commemorative photo before the financial institutions meeting held on the 27th at the Bankers' Hall in Jung-gu, Seoul. From the left: Sohn Tae-seung, Chairman of Woori Financial Group; Cho Yong-byoung, Chairman of Shinhan Financial Group; Kim So-young, Vice Chairman; Choo Kyung-ho, Deputy Prime Minister; Yoon Jong-kyu, Chairman of KB Financial Group; Ham Young-joo, Chairman of Hana Financial Group; Sohn Byung-hwan, Chairman of NongHyup Financial Group. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Sim Nayoung] Kim Soyoung, Vice Chairman of the Financial Services Commission, urged at the meeting with financial holding company chairmen held on the morning of the 27th at the Bankers' Hall in Jung-gu, Seoul, together with Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho, that "it is time to strengthen risk management in preparation for simultaneous complex crises," adding, "Since financial companies are the first line of defense in crisis response, I ask you to responsibly expand loss absorption capacity and organize crisis response systems."

Regarding loans to self-employed individuals, Vice Chairman Kim said, "In preparation for the end of the maturity extension and repayment deferral measures at the end of September, we plan to introduce a bond purchase and debt adjustment program (sale of held bonds to KAMCO) to ensure smooth settlement for small business owners and the self-employed, so we ask for active participation." She continued, "We also plan to implement a Safe Conversion Loan that converts variable interest rate loans into fixed-rate, long-term, and installment repayment loans, so we ask banks to play an active role to enable citizens to receive loan support quickly and conveniently."

She further requested, "To stabilize housing for young people who feel relatively disadvantaged, a measure to ease LTV regulations for first-time homebuyers will be implemented, so please carefully oversee the process to ensure it is carried out smoothly without confusion on the ground."

She said, "In the previous administration, the fund intermediation function was excessively emphasized, and finance was regarded as a utility (such as electricity and gas), which led to excessive regulation and intervention emphasizing publicness," adding, "In the new government, starting with the financial authorities, we will adopt a perspective that views finance as an independent value-added industry that creates good jobs and drives innovation." Additionally, she stated, "We will reform outdated regulations and supervisory and inspection practices, and maximize the autonomy of price variables such as interest rates and dividends to actively support the digital innovation and development of the financial industry."