Opposition Criticizes Yoon's Economic Policy Failure, Kim Byunghwan Says "Held Up Well but Personal Perception Is Difficult"

Finance Commission Chairman Nominee Confirmation Hearing
Democratic Party Questions in the Morning
To the Candidate Responsible for Economic Policy Since Government Inauguration
"Must Offer a Responsible Apology"

At the confirmation hearing for Kim Byung-hwan, nominee for Financial Services Commission Chairman, opposition parties including the Democratic Party of Korea continued to criticize and demand a responsible apology for the failure of the Yoon Suk-yeol administration's economic policies. Kim stated, "Although the high interest rates and high inflation were unprecedented globally, I believe we endured considerably well compared to other countries," but also acknowledged, "There were difficulties in the lives of individual citizens."

On the morning of the 22nd, at the Financial Services Commission Chairman nominee confirmation hearing held by the National Assembly's Political Affairs Committee in Yeouido, Seoul, Kim made these remarks in response to opposition lawmakers' questions that the ruling party lost the general election due to the failure of the Yoon administration's economic policies.

When Kang Hoon-sik, a Democratic Party lawmaker, demanded an apology for the failure of economic policies, Kim responded, "I work with the thought that the lives of the people should always improve," adding, "There are both well-done and lacking parts, and I acknowledge and apologize for the shortcomings."

Regarding the opinion from Cheon Jun-ho, a Democratic Party lawmaker, that Kim, who has overseen economic and financial policies since the start of the Yoon administration, should take responsibility for soaring inflation, Kim said, "I believe I have been entrusted with a public duty, and if given the opportunity, I will work harder to compensate for the shortcomings." Following this, Lee Kang-il, a Democratic Party lawmaker, asked, "As someone who worked as a key figure in economic policies such as fiscal policy, do you agree that you bear some responsibility for the economy's difficult trajectory?" Kim replied, "I was in such a position."

Kim Byung-hwan, the nominee for the Financial Services Commission chairman, is delivering an opening statement at the confirmation hearing held by the National Assembly's Political Affairs Committee on the 22nd. Photo by Kim Hyun-min kimhyun81@

Kim reiterated a negative stance on the financial investment income tax. When Kwon Seong-dong, a People Power Party lawmaker, asked for his thoughts on the era of asset formation through stock investment, Kim emphasized, "The financial investment income tax definitely has a negative impact on the capital market," and added, "I hope this will be deeply considered during the National Assembly's deliberations."

When Kim Sang-hoon, a People Power Party lawmaker, asked about the claim that the financial investment income tax is a 'tax cut for the rich,' Kim responded, "It is not only an issue for the wealthy; even investors who do not pay taxes on the amount when selling stocks are affected," and said, "If anything, it can be defined as a tax cut for investors."

Questions about the relationship with the Financial Supervisory Service (FSS) also followed. Kwon cited cases during the Moon Jae-in administration, such as the Lime scandal, where individual investors suffered losses, stating that the FSS's monitoring system did not function properly, and asked, "Since the Financial Services Commission is the superior institution, is there a lack of supervision over the FSS's mistakes?" Kim replied, "We have an obligation to supervise and will cooperate where necessary and discuss any shortcomings."

People Power Party lawmaker Yoo Young-ha and Social Democratic Party lawmaker Han Chang-min asked about FSS Governor Lee Bok-hyun expressing opinions on economic policies such as the financial investment income tax and short selling, despite not being a policy-making body. Kim asked for understanding regarding evaluating past remarks but said, "I understand the importance of providing clear messages to the market through prior coordination." He added, "It seems Governor Lee spoke on matters requiring public discussion, and we will coordinate well."

Regarding allegations that the stock price rose after the term 'Sambu' was mentioned in a group chat including former Marine Corps 1st Division Commander Lim Seong-geun and former Black Pearl Investment CEO Lee Jong-ho, Kim said, "It is difficult to judge based on the current information," and added, "If there is truly a problem in the system, it should be detected by that system."