Kim Juhyun, Financial Services Commission Chairman, Summons CEOs of 5 Major Financial Groups to Government Complex to Pressure Support for Self-Employed

Financial Services Commission Chairman Kim Ju-hyun (fourth from the left) is taking a commemorative photo with the chairmen of the five major financial holding companies on the 21st at the Government Seoul Office in Jongno-gu, Seoul. From the left, Bae Bu-yeol, Vice President of NongHyup Financial Group; Ham Young-joo, Chairman of Hana Financial Group; Son Tae-seung, Chairman of Woori Financial Group; Kim Ju-hyun, Chairman of the Financial Services Commission; Yoon Jong-kyu, Chairman of KB Financial Group; Cho Yong-byeong, Chairman of Shinhan Financial Group. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Song Hwajeong] Amid recent controversies over debt forgiveness related to the government’s financial support for small business owners, Financial Services Commission Chairman Kim Joo-hyun called in the heads of the five major financial holding companies to the Government Seoul Office on the 21st to emphasize support from the financial sector.

Typically, meetings between the FSC Chairman or the Financial Supervisory Service Chief and financial sector CEOs are held outside government buildings, such as at the Bankers’ Hall, but this meeting was unusually held at the Government Seoul Office near Gwanghwamun. This created an impression that Chairman Kim was strongly pressuring the heads of the five major financial holding companies by summoning them to his own domain.

This meeting was the first since Chairman Kim’s inauguration and was attended by KB Financial Group Chairman Yoon Jong-kyu, Shinhan Financial Group Chairman Cho Yong-byeong, Woori Financial Group Chairman Sohn Tae-seung, Hana Financial Group Chairman Ham Young-joo, and NongHyup Financial Group Vice President Bae Bu-yeol.

The main topics discussed were ▲ recognition of the complex crisis and thorough response by the financial sector ▲ explanation and consultation on financial sector tasks for stabilizing people’s livelihoods ▲ guidance and communication on financial regulatory innovation.

In particular, tasks related to stabilizing people’s livelihoods were intensively discussed. Chairman Kim stated, “In the current situation of rapid inflation and rising interest rates, the difficulties faced by self-employed individuals, small business owners, and vulnerable groups with limited capacity to respond are intensifying,” adding, “Regarding this, it is necessary for the financial sector to have an accurate understanding of the financial sector livelihood stabilization tasks announced by the government on the 14th and to actively cooperate.” He further requested meticulous verification and inspection from the establishment of IT systems to frontline branch preparations, emphasizing the importance of execution and supplementation on the ground.

Regarding the maturity extension and repayment deferral support measures ending in September, Chairman Kim said, “There is high interest and concern about the maturity extension and repayment deferral measures for small business owners and SMEs, so the industry and authorities must pool wisdom to find the optimal solution,” adding, “In particular, financial institutions that know their borrowers well need to provide consulting first and guide a smooth transition.”

Chairman Kim also stated, “Since future developments remain highly uncertain, it is necessary to thoroughly manage risks such as soundness and liquidity and enhance resilience,” and added, “Financial holding companies should prepare by sufficiently provisioning for potential loss expansions and expanding capital.”

In response, the financial holding company chairmen replied, “We will closely monitor liquidity, soundness, and intra-group transmission risks and proactively manage risks thoroughly.”