CEOs of the Yeonjeon Industry Express "Active Cooperation with Government Policies" at Non-public Meeting with Financial Supervisory Service Chief

5th Financial Supervisory Service Chief and Credit Finance Industry Hold First Meeting
What Was Discussed After Switching to Private Talks
"Smooth Landing for Vulnerable Borrowers, Active Support for Self-Employed"
Regarding Big Tech Entry, "Threat to Survival"

On the 5th, Lee Bok-hyun, Governor of the Financial Supervisory Service (4th from the left in the front row), is taking a commemorative photo before holding a meeting with the CEOs of the credit card industry at the Korea Federation of Women’s Financial Associations in Jung-gu, Seoul. Photo by Financial Supervisory Service

[Asia Economy Reporter Song Seung-seop] CEOs of the credit finance industry expressed their willingness to actively cooperate with financial authorities and government policies during their first meeting with the Financial Supervisory Service (FSS) Governor. They promised to focus not only on soundness and liquidity management but also on supporting financially vulnerable groups.

On the 5th, Lee Bok-hyun, Governor of the Financial Supervisory Service, held a meeting with CEOs of 14 card and capital companies and association officials at the Credit Finance Association in Jung-gu, Seoul, to discuss industry issues. The meeting proceeded with an open opening statement by Governor Lee, followed by a closed session where industry representatives spoke. During the closed session, industry leaders mainly expressed their commitment to cooperate on risk management and protection of vulnerable borrowers.

Lee Chang-kwon, CEO of KB Kookmin Card, emphasized, “There is a complex crisis situation involving liquidity and soundness simultaneously, so we conduct stress tests to manage crises and soundness.” He added, “Since the outbreak of COVID-19 in 2020, we have been preparing diligently and are managing conservatively and sufficiently this year as well.” He continued, “We are actively implementing revolving interest rates according to the positions of the Financial Services Commission and the Financial Supervisory Service. Regarding the vulnerable borrowers you mentioned, we will support a soft landing plan. We will do our utmost to prevent any crisis originating from cards.”

Kwon Gil-ju, CEO of Hana Card, said, “We will take measures sufficient to absorb losses and thoroughly prepare for liquidity-related crises.” He also stated, “We will actively cooperate with government support for self-employed individuals.” Regarding protection of vulnerable borrowers and the financial market, he pledged, “We will do our best.”

Big Tech’s Entry into the Credit Finance Market "A Tremendous Threat to Survival"

Im Young-jin, CEO of Shinhan Card, also said, “Based on what the Governor mentioned, our industry will back up well and strive to move in the same direction.” He added, “We will work hard to maintain sound management through scenario management at each crisis stage.” Furthermore, he stated, “We will actively respond to government policies such as coexistence with low-income and small business owners, resolving polarization issues, and protecting financially vulnerable groups.”

Some representatives emphasized the efforts of the credit finance industry. Jo Jwa-jin, CEO of Lotte Card, acknowledged, “It is true that the credit finance industry has been somewhat lacking,” but explained, “There have been institutional efforts to stabilize the market through mechanisms like the bond stabilization fund.” Regarding CEO Im Young-jin, he evaluated, “With many products and good payment infrastructure, they contribute to national consumption and government tax base expansion. They have also played an important infrastructure role in supporting damage relief during the COVID-19 situation.”

Concerns about Big Tech’s entry were also voiced. Recently, competition has intensified as Toss entered the card loan refinancing market. Hwang Su-nam, CEO of KB Capital, said, “If the MyData business is activated, the movement of customers from the secondary financial sector will inevitably accelerate.” He expressed concern, “From our perspective, especially for companies like ours that conduct a lot of retail business in the capital sector, this is a flow of change that poses a tremendous threat to survival.”