Kim Byun-hwan "Strong Response to 'Social Evil' Illegal Private Loans"... Comprehensive Review of Support for Low-Income Financial Services

Kim Byung-hwan, Chairman of the Financial Services Commission, Urges at Executive Meeting
Calls for Strengthened Promotion of Free Debtor Representation and Policy Microfinance Products
Also Requests Strict Crackdown through 'Illegal Private Lending Eradication TF'

Kim Byung-hwan, Chairman of the Financial Services Commission, is delivering opening remarks at the 'Financial Holding Company Chairmen Meeting' held on the 30th at the Bankers' Hall in Jung-gu, Seoul. Photo by Kang Jin-hyung aymsdream@

Kim Byung-hwan, Chairman of the Financial Services Commission, emphasized the need to strongly respond to illegal private loans, which threaten not only the lives of ordinary people but also the trust and foundation of society as a whole, calling them a "social evil." He also stressed the necessity of a comprehensive review of the support system for low-income financial services to prevent ordinary citizens from falling into illegal private loans.

On the 13th, Chairman Kim held a meeting with executives and made these remarks regarding recent responses to illegal private loans. In particular, he referred to a recent media report about a single mother in her 30s who, due to illegal debt collection by loan sharks, left her young children behind and took an extreme step, pointing out that illegal private loans are becoming increasingly cunning and malicious.

Chairman Kim stated, "The financial authorities are making efforts to promptly implement the 'Measures to Eradicate Illegal Private Loans,' prepared through government-party consultations on September 11, and at the same time, it is necessary to conduct a full review of the support system for low-income financial services to prevent ordinary people from falling into illegal private loans." He added, "To prevent similar damages, please strengthen the promotion of systems such as free support for debtor representatives and policy low-income financial products, which respond to illegal debt collection and illegal private loans, and continue to improve these systems."

He also urged strict crackdowns through a government-wide task force (TF) dedicated to eradicating illegal private loans. The government decided to extend the special crackdown period from the original end of October this year to the end of October next year. He said, "I ask for strict enforcement against illegal private loan crimes in cooperation with investigative and law enforcement agencies," and emphasized, "Please do your best in the National Assembly discussions to ensure that the 'Amendment to the Loan Business Act,' which strengthens penalties against illegal private lenders and establishes grounds for invalidating antisocial loan contracts, is passed as a top priority in this year's second regular session."

He also announced plans to strengthen support for vulnerable low-income groups. Chairman Kim said, "We will actively work to secure the budget for next year to ensure sufficient supply of necessary funds," and added, "We will further strengthen comprehensive support linking financial, employment, and welfare systems for vulnerable groups exposed to illegal private loans, and carefully consider ways to expand not only policy low-income financial services but also 'private' low-income financial services in the financial sector." He further stated, "I plan to personally oversee efforts to eradicate illegal private loans and promptly improve policies and systems to ensure effective supply of low-income financial services."

Meanwhile, he also urged maintaining a readiness posture to respond timely as financial market volatility increases due to the impact of Donald Trump's election as U.S. President. Chairman Kim said, "Since Trump's victory in the U.S. presidential election, market variables such as stock prices, interest rates, and exchange rates worldwide have shown high volatility," and added, "Given the high global uncertainty and the possibility that market volatility may continue for some time, please strengthen market monitoring and maintain readiness to respond promptly when necessary."