President Yoon Suk-yeol's First Executive Meeting After Impeachment Motion Passed
"Gaining Market Trust and Maintaining External Credibility Are Very Important"
Ordered Prompt Announcement of Card Fee Reduction Measures and Bank Sector Support Plans for Small Business Owners
Kim Byung-hwan, Chairman of the Financial Services Commission, held the first expanded executive meeting since the passage of the impeachment motion against President Yoon Seok-yeol and requested that measures to ease market stability, including the timing of the introduction of stress buffer capital, be announced within this week.
On the 16th, Chairman Kim emphasized at the expanded executive meeting held at the Government Seoul Office in the morning, "Not a moment of vacancy can be allowed in state affairs," and urged, "Financial Services Commission employees, as public officials responsible for financial policy, should carry out their duties without any setbacks with a sense of mission."
He mentioned that it is very important to first gain market trust and maintain external credibility, so efforts to stabilize the market and consistent policy implementation are necessary. Chairman Kim ordered, "Keep a close watch on the market with tension, implement prepared market stabilization measures in a timely manner, and continuously communicate with domestic and foreign financial companies and investors."
He added, "In particular, promptly review the financial sector's requests for market stabilization, such as the timing of the introduction of stress buffer capital, and announce possible measures as soon as possible within this week."
The financial authorities had planned to mandate the accumulation of additional capital, called stress buffer capital, for 17 domestic banks and 8 bank holding companies starting from the end of this year. This measure requires additional capital accumulation of up to 2.5 percentage points (P) added to the existing minimum capital regulation ratio depending on the decline in the common equity tier 1 capital ratio based on stress test results. However, recently, the financial authorities are considering postponing the introduction timing or adjusting the pace.
He also requested that plans to reduce card fees and support measures for small business owners in the banking sector be announced promptly. Chairman Kim stated, "Announce the card fee reduction plan to ease the burden on small-scale self-employed businesses within this week, and finalize consultations so that financial support measures for small business owners in the banking sector, such as debt restructuring for delinquent and closed businesses, can be announced within December."
He added, "Closely examine the funding situation by company size to ensure that companies do not face difficulties in financing, gather opinions from industrial departments, and prepare policy finance supply plans for next year."
Meanwhile, Chairman Kim also requested support for the passage of various livelihood-related bills pending in the National Assembly, including the Loan Business Act (improvements related to illegal private financing), the Electronic Financial Transactions Act (prevention of Time Fraud), and the Depositor Protection Act (raising the deposit protection limit).
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