[Gwanga in] What Is the Reason Behind the Financial Supervisory Service Chief's Tour of Banks Amid 'General Election Candidacy Rumors'?

5 Major Banks and Regional Banks Take Wide-Ranging On-Site Actions
'Kookmin Bank Also Offers Gift of Interest Rate Cuts on All Loan Products'
Raising Awareness and Gaining Public Support

▲Lee Bok-hyun, Governor of the Financial Supervisory Service, is applauding at the 'Financial Consumers On-site Meeting for Expanding Win-Win Finance' held at the KB Kookmin Bank headquarters in Yeouido on the morning of the 9th.

"So, does that mean you are not retiring this year?" (Reporter) "…." (Lee Bok-hyun, Financial Supervisory Service Governor)

On the morning of the 9th, after the 'Financial Consumer On-site Meeting for Expanding Win-Win Finance' held at the KB Kookmin Bank headquarters in Yeouido, Governor Lee Bok-hyun met with reporters but did not give a clear answer regarding the speculation about his candidacy for the general election. He said, "(Win-win finance) is an issue where people who share the same intention can make efforts at least until the end of this year or the first half of next year, and the governor of the Financial Supervisory Service is well aware that he plays an important role in that," but he refrained from confirming his intention to retire when asked directly.

Recently, Governor Lee's extensive activities have added weight to the speculation about his candidacy. His schedule has mainly focused on field visits. Last week, he visited the KakaoBank headquarters in Pangyo Techno Valley, Seongnam City, meeting with internet bank and fintech officials. On the 8th, he went down to Busan and visited the BNK Busan Bank headquarters. On the 9th, he went to the KB Kookmin Bank headquarters in Yeouido. These are the top companies in their respective sectors: internet banks, regional banks, and commercial banks.

He secured gifts likely to gain public support. KB Kookmin Bank announced on the day of his visit that it would lower interest rates on all household loan products, including mortgage loans, jeonse deposit loans, and credit loans, by 0.3 to 0.5 percentage points. Busan Bank also promised to reduce loan interest rates by 1.0 percentage point for small business owners and vulnerable groups in the region and to lower interest rates on other loan products by 0.8 percentage points.

Governor Lee plans to visit other banks such as Shinhan Bank and Daegu Bank in the future. Regarding the interest rate cuts, he said, "It needs to spread throughout the banking sector and I hope it will establish itself in a sustainable form," so it is expected that announcements of interest rate cuts by commercial banks will continue for the time being.

Regarding Governor Lee's unusual movements, the financial industry continues to speculate about his candidacy for the general election. Lee, a former prosecutor, is a close aide to President Yoon Seok-yeol and was once referred to as the "youngest member of Yoon Seok-yeol's faction." This time, following President Yoon's remarks about the "bank money party," he has taken the lead in targeting bank loan interest rates. Many expect that "after the first half of this year, possibly around July, there will be changes in Governor Lee's position to prepare for the general election." Rumors in government circles these days include, "He might run after receiving nomination in Seoul's ○○ district," and "○○○ is being mentioned as the successor to the Financial Supervisory Service Governor."

The recent field visits to banks are also widely interpreted within the financial sector as preparation for the general election. In the financial sector, comments include, "Since cameras follow these events, it can raise his recognition," "He is disciplining banks and inducing a series of interest rate cuts while also boosting his approval ratings," and "You can tell just by comparing his relatively quiet actions with those of the Financial Services Commission Chairman."