'Relaxation of Geumsan Separation' Kim Ju-hyun, Financial Services Commission Chairman: "If financial companies want to launch drones, they should be allowed to do so"

September Small Business Loan Extension Ends "It Is Not Advisable to Keep Extending Exceptional Situations"
Concerns Over Soundness Mainly in Secondary Financial Sector
Short Selling Ban "Should Be Used When Necessary" Criticized

[Asia Economy Reporter Sim Nayoung] On the 11th, newly appointed Financial Services Commission Chairman Kim Juhyun said, "If our financial industry wants to launch drones like others, I think we should do it," adding, "If it is not allowed due to the separation of banking and commerce, we need to consider easing the separation of banking and commerce."

Right after his inauguration, Chairman Kim emphasized again at a press briefing held at the Seoul Government Complex that, due to rapid changes in the financial environment caused by technological innovation, regulations on the separation of banking and commerce (a regulation prohibiting financial capital and industrial capital from owning or controlling each other's industries) should be adjusted if necessary.

At a press briefing immediately after his appointment on the 7th of last month, he stated, "If overseas financial companies are conducting certain businesses but Korean banks cannot, we will remove all unjustifiable reasons," and added, "From the perspective of existing financial companies, if big tech companies can do it but banks cannot, we will lift regulations where there are no valid reasons."

Regarding the expiration of the loan repayment moratorium for small business owners in September, he said, "The basic idea is that it is not desirable to continue exceptional situations," and added, "Whether to extend the maturity should be thoroughly checked from now on to see if it is okay to end before the final decision to terminate."

On the soundness of financial companies, he said, "I understand there are concerns mainly in the secondary financial sector," and added, "Since there are many uncertainties in the future situation, the authorities are carefully preparing."

Regarding demands from individual investors to ban short selling, he said, "Not only in Korea but also abroad, short selling bans are imposed when markets change rapidly," and added, "Depending on market conditions, if necessary, not only short selling but also support funds should be utilized."

On the interest rate spread and interest income of commercial banks, he said, "Our society may question whether it is reasonable that banks earn a lot of money while customers are struggling," adding, "This is the general sentiment of our people, and the political circles feel the same, so if there are misunderstandings about this in the financial sector, they should explain the facts and do what they can."