Lee Jae-myung: "The Crisis Triggered by Kim Jin-tae, the Problem Is That No One Takes Responsibility"

Breaking Trust in Financial Markets... Neglecting Responsibility Is an Even Bigger Problem

Lee Jae-myung, leader of the Democratic Party of Korea, is attending the Supreme Council meeting held at the National Assembly on the 9th and delivering opening remarks. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Koo Chae-eun] Lee Jae-myung, leader of the Democratic Party of Korea, said on the 18th that the biggest problem related to the so-called 'Legoland incident' is "no one taking responsibility."

In his opening remarks at the 'Bond Market and Financial Market Stability Review Forum' held at the National Assembly Members' Office Building that day, Lee said, "The local government's declaration that it will not fulfill its legal obligations breaks the entire credit system, and there is no dispute that this has deepened the confusion in the bond market, but no one is taking any responsibility." He pointed out, "If the government takes the stance that everything is handled by the market and that there is nothing the government can do, disappointment and anxiety dominate the economic field. This itself can cause a very serious economic crisis, and trust is especially more important in the financial market."

He continued, "The non-exercise of Heungkuk Life Insurance's call option is also very serious. If the financial authorities at the time did not know, it would be truly incompetent, and if they tolerated it knowing about it, that is also a problem," adding, "They said it was withdrawn after only six days, but the market's trust was already completely broken."

Lee said, "This clearly exposed the incompetence and irresponsibility of the financial authorities, which further increased the confusion in the bond market," and added, "Even now, the financial authorities must demonstrate their capabilities and take responsibility. Because they do not take responsibility and leave things unattended, such incidents occur and the market becomes unstable."

Kim Byung-wook, a Democratic Party lawmaker who hosted the event that day, also mentioned, "A company's sources of funding are banks, bonds, and stocks, and it is the role of the financial authorities to ensure that these three operate well," and said, "They must take appropriate responsibility for the collapse of market trust caused by the Legoland incident."

Lawmaker Kim said, "In particular, the short-term financial market is becoming difficult, and there is much criticism that the government's 50 trillion won plus alpha support was late in terms of policy timing."