President Yoon: "Financial Risks and Uncertainties Remain, We Must Prepare"

Financial Services Commission Work Report and Forum on the 30th
Over 100 Attendees from Financial Authorities, Industry, and Academia

President Yoon: "Financial Companies Need to Advance Governance of Ownerless Firms"

[Image source=Yonhap News]

[Asia Economy Reporter Sim Nayoung] President Yoon Suk-yeol stated on the 30th at the Blue House State Guest House during the Financial Services Commission (FSC) business report and discussion meeting, "Despite the difficult economic conditions of high interest rates and high inflation last year, financial authorities and financial companies are evaluated to have managed the risks they faced well together." However, he urged, "Since uncertainties still remain, please make sufficient preparations in advance so that rapid recognition of the situation and proactive and bold responses are possible."

President Yoon continued, "There is a need to modernize the governance of ownerless companies with dispersed ownership, including financial companies," and proposed, "Let our society think more deeply to institutionally establish a more transparent and fair governance structure."

He also requested, "To develop the financial industry, it is important to eradicate moral hazard and financial fraud in the market, so please strictly punish these to create an environment where market participants can invest with confidence."

Following the FSC business report, the 'Discussion on Financial Market Stability and Financial Industry Development' was held, gathering over 100 participants from various sectors including government, central bank, academia, private experts, and consumer groups, engaging in discussions for about four hours.

Regarding financial market stability, it was evaluated that "despite domestic and international instability factors last year, the government, Bank of Korea, and financial sector, including the FSC, took timely and sufficient response measures, resulting in a rapid resolution of market difficulties." However, since domestic and international instability factors still remain, the government, Bank of Korea, and financial sector agreed to actively cooperate in crisis response going forward. Concerning real estate market instability, it was emphasized that policy tools should be used to guide a soft landing of the real estate market.

On the role of stabilizing people’s livelihoods, it was stressed that "as continuous interest rate hikes increase the financial and housing cost burdens on youth and low-income groups, measures to alleviate these difficulties, such as supplying policy financial products like special home mortgage loans and supporting debt restructuring, must be actively pursued." Regarding financial industry development, financial authorities stated, "We will actively support institutional improvements and fintech development to enable finance to grow as a new strategic industry of the nation."

Below are the attendees of the 'Discussion on Financial Market Stability and Financial Industry Development' held that day.

▲ Kim Joo-hyun, Chairman of the Financial Services Commission ▲ Kim So-young, Vice Chairman of FSC and FSC executives and staff ▲ Joo Ho-young, Floor Leader of the People Power Party ▲ Sung Il-jong, Policy Committee Chair of the People Power Party ▲ Yoon Chang-hyun, Member of the People Power Party ▲ Han Duck-soo, Prime Minister ▲ Choo Kyung-ho, Deputy Prime Minister and Minister of Economy and Finance ▲ Bang Moon-kyu, Director of the Office for Government Policy Coordination ▲ Lee Chang-yong, Governor of the Bank of Korea ▲ Lee Bok-hyun, Governor of the Financial Supervisory Service ▲ Kang Seok-hoon, President of Korea Development Bank ▲ Kim Sung-tae, President of Industrial Bank of Korea ▲ Choi Won-mok, Chairman of the Korea Credit Guarantee Fund ▲ Yoo Jae-hoon, President of the Deposit Insurance Corporation ▲ Choi Jun-woo, President of Korea Housing Finance Corporation ▲ Kwon Nam-joo, President of Korea Asset Management Corporation ▲ Son Byung-doo, Chairman of Korea Exchange ▲ Lee Jae-yeon, President of the Korea Inclusive Finance Agency and Chairman of the Credit Recovery Committee ▲ Kim Tae-hyun, Chairman of the National Pension Service ▲ Jin Seung-ho, President of Korea Investment Corporation ▲ Cho Dong-chul, President of Korea Development Institute ▲ Kim Kwang-soo, Chairman of the Korea Federation of Banks ▲ Jung Hee-soo, President of the Life Insurance Association ▲ Jung Ji-won, President of the General Insurance Association ▲ Seo Yoo-seok, President of the Korea Financial Investment Association ▲ Yoon Jong-kyu, Chairman of KB Financial Group ▲ Cho Yong-byeong, Chairman of Shinhan Financial Group ▲ Ham Young-joo, Chairman of Hana Financial Group ▲ Lee Seok-jun, Chairman of NongHyup Financial Group ▲ Kim Tae-oh, Chairman of DGB Financial Group ▲ Kim Ki-hong, Chairman of JB Financial Group ▲ Kim Nam-gu, Chairman of Korea Investment Holdings ▲ Kim Yong-beom, Vice Chairman of Meritz Financial Group ▲ Heo In, Vice Chairman of KB Financial Group ▲ Lee Seung-yeol, CEO of Hana Bank ▲ Ko Seok-heon, Vice President of Shinhan Financial Group ▲ Kim Hong-sun, Vice President of SC First Bank ▲ Ha Young-gu, Chairman of Blackstone Korea ▲ Kim Gil-soo, Head of DBS Bank Seoul Branch ▲ Jung Soon-seop, Professor at Seoul National University ▲ Cho Myung-hyun, Professor at Korea University ▲ Heo Jeong-yoon, Professor at Kookmin University ▲ Park Sung-wook, Director of the Korea Institute of Finance Research Office ▲ Lee Byung-yoon, Senior Research Fellow at Korea Institute of Finance ▲ Lee Hyuk-jun, Head of NICE Credit Rating Financial Evaluation Division ▲ Kim Young-duk, CEO of D.CAMP ▲ Park Sung-hyun, CEO of Rebellion ▲ Seo Jae-hyung, CEO of A-Pass ▲ Park Sang-jin, CEO of Naver Financial ▲ Kim Tae-hoon, CEO of BankSalad ▲ Kim Do-hyun, Head of Management Innovation Division at Mirae Asset Securities ▲ Shim In-sook, President of Korea ESG Standards Institute ▲ Mark Teto, CEO of TCK Investment Company ▲ Cho Yoon-mi, Executive Director of Future Consumer Action ▲ Kim Young-jin, Head of Overseas Cooperation Team at Korea Financial Telecommunications & Clearings Institute, etc.