"Our Economy Also Shifts to Interest Rate Cut Policy... Proactive Response to Real Estate Overheating"

Kim Byung-hwan, Chairman of the Financial Services Commission, said on the 14th regarding the recent interest rate cut by the Bank of Korea, "I hope that preemptive measures will be prepared in advance for risk factors such as increased leverage, real estate overheating, and the soundness of financial institutions."

Financial Services Commission Chairman Kim Byung-hwan is attending and speaking at the Economic Ministers' Meeting and the 1st Investment Activation Ministers' Meeting held at the Government Seoul Office in Jongno, Seoul on the 2nd. Photo by Jo Yong-jun jun21@

Chairman Kim held a meeting with senior officials of the Financial Services Commission on the same day and said about the recent financial market situation, "Last week, an interest rate cut was implemented for the first time in 3 years and 2 months, and now our economy has also shifted to an interest rate cut stance."

Chairman Kim emphasized, "We need to closely analyze the impact of this shift in interest rate policy on the financial market, financial industry, households, and businesses," adding, "It is necessary to comprehensively review the fund intermediation function so that the parts contributing to economic revitalization, such as promoting investment, can accelerate their effects."

He also mentioned important measures to be implemented this month, including the ▲Personal Debtor Protection Act (on the 17th), ▲Digitization of Actual Loss Insurance Claims (on the 25th), and ▲Physical Transfer Service for Retirement Pensions (on the 31st), saying, "Since these are important policies directly related to the lives of the people, I ask that thorough efforts be made to faithfully inform the public so that the policy effects can be felt."

Amid frequent embezzlement and fraudulent loan incidents in the financial sector recently, he also urged a thorough investigation into the large-scale loss incident that occurred at Shinhan Financial Investment. He stated, "It is concerning that various financial accidents such as embezzlement and fraudulent loans continue in the financial sector, and recently a large-scale loss occurred at Shinhan Financial Investment," adding, "I ask the Financial Supervisory Service to thoroughly inspect and investigate this incident and take necessary measures based on the results."

Regarding the remaining schedule of the National Assembly audit, he said, "Since the audit of related agencies is ongoing, please review the issues raised during the audit and prepare thoroughly for the comprehensive audit," and added, "If there are misunderstandings or parts that require explanation, please explain them sufficiently, and actively consider and reflect proposals that can be incorporated into policies."