"Show the Legitimacy of the Money-Making Process"
"Considering Relief for the Burden on Self-Employed and Small Business Owners"
On the 27th, Kim Ju-hyun, Chairman of the Financial Services Commission, announced that he would consider the need for institutional improvements to prevent incomplete sales related to Hong Kong's H Index (HSCEI)-linked ELS (Equity-Linked Securities) products, which are expected to incur large-scale losses in the first half of next year.
After a meeting between the Financial Services Commission, the Financial Supervisory Service, and bank presidents held at the Korea Federation of Banks in Myeong-dong, Jung-gu, Seoul, Chairman Kim told reporters, "Depending on the results of the Financial Supervisory Service's investigation into incomplete sales, we will examine whether there are institutional improvements needed or actions to be taken from the perspective of consumer protection."
He stated, "If management has earned money in certain areas, they must demonstrate the legitimacy of how they earned it, including whether there were any consumer protection issues or whether banks took excessive risks during the process of making money," adding, "Simply creating a responsibility structure does not mean that an internal control system is established."
Regarding specific measures and the scale of win-win finance in the banking sector, he said, "After understanding the scale and situation of the target loans of banks, a task force (TF) will be formed centered on the Korea Federation of Banks, the government, and supervisory authorities to proceed with a sense of urgency." He also announced plans to ease the burden on small business owners and self-employed individuals. Chairman Kim explained, "We are considering ways to alleviate the burden on self-employed individuals and small business owners who take high-interest loans from secondary financial institutions," adding, "We may expand the scale and scope of refinancing loans or increase the support range."
He drew a clear line against criticism that calls for win-win finance measures in the banking sector are a form of 'new government control.' Chairman Kim said, "In the financial market and financial industry, swift and flexible responses are important, and for that, authorities need to understand the thoughts of financial companies," adding, "If this is criticized as government control, then we wouldn't even be able to meet and talk."
Financial Services Commission Chairman Kim Ju-hyun is speaking at the 'Meeting between the FSC, FSS, and Bank Presidents' held on the 27th at the Korea Federation of Banks building in Jung-gu, Seoul. Photo by Kim Hyun-min kimhyun81@
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
