[Column] Grand Unity of Ruling and Opposition Parties Against 'Bank Bashing'

"Even if our country and Japan do not get along well, shouldn't we unite if aliens invade?" This was a remark made by the late former lawmaker Roh Hoe-chan, known for his eloquence, about a decade ago during the general election regarding an alliance with the Democratic United Party. The reality facing the banking sector is exactly like this. With less than half a year remaining until the general election, both ruling and opposition parties are treating banks like 'aliens.'

The opposition party is preparing to push the 'windfall tax' card with the full mobilization of its leadership. This comes amid ongoing controversies such as double taxation. The opposition's argument is to define net interest income exceeding 120% of the average interest income over the past five years as excess profit, and to collect up to 40% of this excess profit as a contribution. If the bill passes, the contribution banks would have to pay this year would amount to about 2 trillion won.

The ruling party criticizes this move by the opposition as 'populism,' but they are not in a position to cast stones. The government and ruling party ignited this fire. This is already the second time this year. Earlier this year, the government and ruling party pressured banks by calling it 'interest business,' and recently, they have demanded additional donations and contributions from banks with remarks like 'servitude to banks' and 'power harassment.' It was also the government and ruling party who initially expanded the banking sector's pie by pushing policy mortgages exceeding 40 trillion won and interest rate reduction pressures. Although the ruling and opposition parties usually engage in extreme conflicts, they have achieved grand unity in front of the banks.

As both ruling and opposition parties unanimously mention, it cannot be denied that high interest rates are worsening the people's hardships. However, it should not be forgotten that profits for banks are the only 'breakwater' that can be utilized when a recession hits. As of the end of the first half of the year, the provision coverage ratio of domestic banks stands at 0.93%, about half that of the United States (1.67%). Furthermore, the profits of private companies and corporations are also meant to be shared with their owners, the shareholders.

The political sphere should unite not in creating public enemies but in addressing real issues. As history has proven, scapegoating ultimately leads to unfavorable consequences. If our government or society lacks the capacity to resolve the people's hardships, rather than resorting to easy attacks on the banking sector, it is appropriate to start debates on more fundamental issues such as structural reforms and tax increases, which have quietly disappeared from the political arena.