[2022 National Audit] Kim Juhyun "Proactive Response to Financial Market Crisis... Actively Promoting Virtual Asset Regulation"

October 6 National Assembly Political Affairs Committee Audit

[Image source=Yonhap News]

[Asia Economy Reporter Sim Nayoung] On the morning of the 6th at 10 a.m., Financial Services Commission Chairman Kim Juhyun stated at the National Assembly's Political Affairs Committee audit, "We will actively establish a regulatory framework for virtual assets in cooperation with the National Assembly." He also conveyed plans to promote livelihood stabilization measures and support for small and medium-sized enterprises (SMEs), as well as to create a fund to support the leap of venture and startup companies into unicorn status.

Chairman Kim first mentioned that the Financial Services Commission will take a preemptive response to the financial market crisis. He said, "Amid persistent global inflation, accelerated high-intensity tightening by major countries, and the prolonged Russia-Ukraine war, financial market volatility is increasing," adding, "We are operating an emergency inspection system to conduct continuous financial market monitoring, a financial risk response task force, and necessary market stabilization measures such as purchasing corporate bonds and commercial papers."

Referring to the implementation of livelihood stabilization measures in the financial sector, he stated, "Due to the worsening economic and financial conditions such as high inflation, high interest rates, and high exchange rates, the difficulties of vulnerable groups are intensifying. We will steadily implement the ‘Financial Sector Livelihood Stabilization Measures’ to reduce the debt repayment burden of small business owners and self-employed individuals, and to lower the financial burden on financially vulnerable borrowers, low-income, and low-credit citizens."

He also said, "For SMEs, we are supplying fixed-rate loan products worth 6 trillion won and have prepared a ‘Rationalization Plan for SME Accounting Burdens.’ For companies temporarily facing difficulties, liquidity necessary for business normalization is being supplied through the ‘Corporate Structural Innovation Fund.’"

Chairman Kim added, "We will continue efforts for the soft landing of household debt so that the household debt, which increased significantly during the COVID-19 response process, does not become a burden on our economy," and said, "We will strengthen supervision of financial companies' soundness to prevent the possibility of household loan defaults from leading to financial sector insolvency."

He also stated that policies supporting the financial industry and the re-leap of our economy will be prepared. Chairman Kim said, "We will accelerate financial regulatory innovation so that the financial industry can actively respond to changing environments such as digitalization and the big blur phenomenon."

He continued, "In July, with the launch of the Financial Regulatory Innovation Council, we announced the 'Platform Finance Activation Plan' and the 'Capital Market Regulatory Innovation Plan.' To enhance our economy's growth potential and support private sector innovative growth, we will establish a fund to support venture and startup companies' leap to unicorn status and strengthen policy finance roles such as expanding funding for future strategic industries."

Furthermore, he said, "We will eliminate discount factors so that our capital market can rebound more significantly when macroeconomic conditions improve," and "We will more robustly protect the rights and interests of general investors and improve systems to meet global standards so that the capital market can actively support the sustainable growth of our economy."

Finally, Chairman Kim stated, "In cooperation with the National Assembly, we will actively promote the establishment of a regulatory framework for virtual assets that balances innovation through new technologies such as blockchain, consumer protection, and financial stability," adding, "Even before legislation, we will supervise virtual asset service providers through the 'Act on Reporting and Using Specified Financial Transaction Information' and cooperate with investigative agencies and related organizations to ensure thorough consumer protection."