August 8, Deputy Prime Minister for Economy Choo Kyung-ho at Kwanhun Forum
"Bank employees demand wage increases despite earning 100 million won annually"
"Why don't telecom companies create diverse services?"
Deputy Prime Minister for Economy Choo Kyung-ho is attending the Economic Deputy Prime Minister Invitation Kwanhoon Debate held at the Press Center in Jung-gu, Seoul on the 8th, delivering opening remarks. Photo by Dongju Yoon doso7@
Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho issued a warning to telecommunications and financial companies. It is pointed out that it is unreasonable for telecom and financial companies, which enjoy the benefits of monopolies, to oppose government regulations by invoking market principles.
On the 8th, at the Kwanhun Forum held at the Press Center in Jung-gu, Seoul, Deputy Prime Minister Choo strongly rebutted the criticism that “adjusting telecommunications fees and bank interest rates, and the process of the holding company chairman’s resignation make the claim of private sector leadership somewhat hollow,” saying, “Let me be clear. Market principles are not toys to be used to defend vested interests when convenient.”
Choo Kyung-ho emphasized, “When the government says to manage well for public nature and the public interest of the people, to be transparent, and to promote competition, they invoke market principles,” adding, “Some say that telling the private sector this violates market principles, but that is not the case.”
Deputy Prime Minister Choo pointed out, “Market principles operate in a fiercely competitive environment with transparency, public nature, and proper governance,” but “the telecommunications and financial industries inherently have characteristics of monopolies and limited competition.” He further criticized, “These industries become like a vested interest, and the shareholders’ agents build their own fortress based on a monopoly market environment with little competition, leading to negligent management.”
He continued, “Yet, in the banking sector, despite all employees earning salaries reaching 100 million won, they are striking and protesting on the streets,” criticizing, “During COVID-19, when social distancing was lifted and there was an attempt to limit business hours to 4 p.m., they protested and even sued business associations.”
Regarding the recent increase in banking sector operating profits, Choo said, “Due to the surge in real estate prices, mortgage loans increased, and banks earned huge income from the interest rate spread,” emphasizing, “It is right to use profits for shareholders and company development, but if earnings increase suddenly due to external factors, the financial sector should reconsider whether there is a way to contribute to customers.”
Concerning telecommunications companies, he claimed, “Our country’s data fees are the highest among OECD countries,” and “Because telecom companies do not offer mid-tier plans, we only have low and high-priced plans.” Deputy Prime Minister Choo questioned, “Why is there only this fee structure and not a variety of services for the public? Does the government always have to say this?” pointing out, “This is exactly what arises from a limited competition environment.”
Finally, Deputy Prime Minister Choo concluded, “The market is a place of fierce competition,” and said, “If you only invoke the market when necessary but are not prepared to adapt to the usual market environment, I think there are many problems.”
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