Lee Bok-hyun, Financial Supervisory Service Chief, Holds Executive Meeting on 2nd
Lee Bok-hyun, Governor of the Financial Supervisory Service, urged vigilance in responding to the numerous domestic and international uncertainties in the financial market in the second half of this year.
At the executive meeting on the 2nd, Governor Lee said, "Although the financial market currently appears stable, it is a very serious situation where complex risk factors across politics, economy, and society are scattered, making it impossible to let our guard down even for a moment." He added, "Early-triggered risks from the U.S. presidential election and the rightward shift in the European Parliament could have significant mid- to long-term impacts due to the strengthening of domestic-first policies."
Governor Lee continued, "Contrary to expectations at the beginning of the year, the U.S. interest rate cuts have been delayed, the dollar's strength has intensified, and currency instability has worsened not only for the Korean won but also for neighboring currencies such as the yen and yuan." He expressed concern, saying, "The warmth of export growth spreading to domestic demand recovery has been delayed, and high interest rates and high inflation continue, exacerbating difficulties for vulnerable groups such as small business owners."
He further stated, "In the second half of the year, market expectations are heavily focused on interest rate cuts and housing price recovery, so even a small unexpected event could escalate into a major crisis." He urged, "All departments of the Financial Supervisory Service must approach their work with vigilance."
Regarding year-end personnel changes, Governor Lee also said he would further strengthen the performance-oriented approach, which is interpreted as a message to focus more on core duties in the second half of the year. He said, "This month's department head personnel changes were minimized to a level of position exchanges among some long-serving department heads due to many ongoing issues such as real estate project financing (PF), short selling, and value-up projects continuing until the end of the year." He added, "The regular personnel changes scheduled for the end of the year will be conducted based on work performance without being bound by seniority, including promotions and position appointments."
Lee Bok-hyun, Governor of the Financial Supervisory Service, is speaking at a meeting with bank presidents held at the Bankers' Hall in Jung-gu, Seoul, on the morning of the 19th. [Image source=Yonhap News]
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