Financial Supervisory Service Chief: "We Will Resolve Red Tape Issues Such as Delays in Fintech Licensing"

[Asia Economy Reporter Song Hwajeong] Lee Bokhyun, Governor of the Financial Supervisory Service, stated that he will work to eliminate 'red tape' such as delays in fintech licensing.

On the 15th, Governor Lee Bokhyun made these remarks to reporters after a meeting with CEOs of foreign financial companies at the Conrad Hotel in Yeouido.

He said, "At today's meeting, there were various suggestions, including that the licensing process for offshore funds should be expedited so that funds can be practically utilized as products in the market," adding, "Delays in fintech licensing and other issues in the licensing process can be perceived as red tape by those using supervisory services, so we will work to resolve these."

Regarding recent moves by banks to reduce the interest rate spread between deposits and loans, Governor Lee said, "Regarding the deposit-loan interest rate disclosure system, we are looking at the efficient operation of the system rather than tracking how much it has increased or decreased compared to a specific point in time," and added, "I understand that banks are making efforts to dispel criticism and concerns about adjustments to non-competitive environments amid the recent interest rate hikes."

On support for vulnerable borrowers, he emphasized the need for assistance like a 'nudge.' Governor Lee explained, "Providing a little help in the form of a nudge to small business owners and young people who are struggling due to unprecedented external shocks such as COVID-19 and rapid interest rate hikes, so that they can continue to be part of the ecosystem and remain in the market economy system, is not considered moral hazard," and added, "We are preparing to implement related policies as an executing agency."

Regarding interim dividends of financial holding companies, Governor Lee said, "We are conducting checks on the soundness of banks and other financial institutions and are consulting with each financial sector based on stress test results assuming pessimistic scenarios," and stated, "Assuming that financial institutions can sufficiently absorb shocks even in pessimistic situations, we cannot say anything against financial institutions autonomously implementing shareholder-friendly policies."