President of the Korea Federation of Banks Responds to 'Money Party' Criticism, Says "Discussion Through Joint Consultative Body"

"There Were Parts I Missed"

[Asia Economy Reporter Yoo Je-hoon] On the 15th, Kim Kwang-soo, Chairman of the Korea Federation of Banks, addressed criticisms that the banking sector is having a "money feast" during the high-interest rate period, stating, "We will create a joint consultative body related to the banking sector's social contributions and discuss it."

Chairman Kim said during a meeting with reporters at the Bankers' Hall in Jung-gu, Seoul, "We will invite consumers, consumer groups, or individuals who view banks critically to regularly hear their opinions," adding this.

Regarding the controversy over interest-based profits, Kim said, "Internally, we thought we were working relatively hard, but the external perspective is very different," and added, "In some respects, I think the banking sector has overlooked certain aspects."

He continued, "Financial Supervisory Service Governor Lee Bok-hyun described the banking sector's social contributions as 'showing off,' so from the standpoint of reflecting on how sincere we have been, we need to receive opinions from outside and discuss them," and added, "We will also take this as an opportunity to reconsider ourselves within the banking sector."

Meanwhile, regarding calls from inside and outside financial authorities to end the banking sector's oligopoly system, Kim said, "Since the 1998 foreign exchange crisis, as the financial holding company system has taken root, the banking sector has been moving toward an oligopoly system," and added, "This is an issue for policy authorities to consider." He further stated, "Personally, I think the retail sector needs to be more competitive, and the corporate finance side needs to be more specialized."