Yoon: "Strict Punishment for Illegal Acts Causing Multiple Damages, Including Illegal Short Selling" (Update)

Financial Services Commission Work Report... Yoon Orders Measures for Public Stability Including Loan Support, Low-Interest Conversion, and Guarantee Expansion

[Image source=Yonhap News]

[Asia Economy Reporter Baek Kyunghwan] President Yoon Suk-yeol on the 8th instructed to "thoroughly monitor and strictly punish illegal activities that can cause multiple damages, such as illegal short selling and unfair trading."

President Yoon conveyed this policy after receiving a briefing from Financial Services Commission Chairman Kim Joo-hyun at the Yongsan Presidential Office building in the afternoon, according to Lee Jae-myung, deputy spokesperson of the Presidential Office.

In particular, President Yoon emphasized, "Please make every effort to stabilize people's livelihoods through loan support for ordinary citizens and vulnerable groups, conversion to low interest rates, and expansion of guarantees." He added, "In response to the increasing volatility of the global economy, I hope there will be no gaps in checking external risks, stabilizing financial markets, and managing household debt."

He also mentioned deregulation. President Yoon ordered, "Please work to reform and rationalize outdated regulations in the financial industry so that many high-quality, high-income jobs can be created in the financial sector."

On the same day, Chairman Kim reported to President Yoon under the theme of 'Preemptive Crisis Response + Supporting the Financial Industry and Our Economy's Leap Beyond the Crisis.' This included ▲ thorough protection of vulnerable groups ▲ stabilization of financial markets ▲ strengthening the soundness of the financial industry for preemptive crisis response, and ▲ digitalization of the financial industry ▲ revitalization of the capital market ▲ support for private sector counter-cyclical growth finance to overcome the crisis and support future growth.

Additionally, as an additional measure for small and medium-sized enterprises (SMEs), a plan to newly supply fixed-rate policy loan products worth 6 trillion won was included. This plan offers up to a 1 percentage point preferential interest rate compared to variable rates to reduce the risk of rising interest rates, and allows switching between fixed and variable rates every six months depending on the interest rate situation. This is a measure to alleviate the burden on SMEs caused by interest rate fluctuations.