"Appropriate Mortgage Loans to Be Supplied for Local Real Estate"
"Common Concerns Extracted from Woori, KB, and NH"
"Ham Young-joo Is Not Someone to Be Criticized for Self-Reappointment"
Lee Bok-hyun, Governor of the Financial Supervisory Service (FSS), stated on the 20th, "Starting early next year, we will smooth out the supply of funds related to household loans to ensure that real demand borrowers do not feel burdened."
After a meeting with construction industry and real estate market experts held at the Housing Construction Hall in Yeouido, Seoul, Lee told reporters, "The basic principle of managing the household debt ratio relative to Gross Domestic Product (GDP) will remain unchanged next year," adding, "At the end of this year, there was a strict approach to managing household debt in response to the excessive surge in real estate prices in the metropolitan area. Next year, we will manage it through smoothing efforts throughout the year to avoid excessive concentration in certain periods."
The FSS also plans to devise measures to resolve the real estate slump in provincial areas. He said, "Unlike the metropolitan area, where real estate prices have surged, we promise to make greater efforts regarding provincial real estate," and added, "If regional banks supply an appropriate amount of household debt within the scope of maintaining soundness in their respective regions or non-metropolitan areas, there could be room for household loans for provincial real estate." He further explained, "I think it might be possible to provide household loan room while properly managing risks related to provincial real estate, even if not necessarily through regional banks."
Lee Bok-hyun, Governor of the Financial Supervisory Service, is speaking at a meeting with experts from the construction industry and real estate market held on the morning of the 20th at the Housing Construction Hall in Yeouido, Seoul. Photo by Yonhap News
Furthermore, Lee emphasized, "I thought it was appropriate to announce the results of financial holding companies and bank inspections in January next year to properly deliver a 'spicy' message, so the announcement was postponed," adding, "This year, we inspected three major financial holding companies?Woori Financial Group, KB Financial Group, and NH Financial Group?and extracted common concerns."
Specifically mentioning Woori Financial Group, he said, "Woori Financial Group has revealed significant problems related to factionalism," and added, "To be honest, under the current Chairman (Lim Jong-ryong) and President (Jo Byung-kyu) system, I do not believe that issue (factionalism) has been resolved. It is not an individual's problem but a financial group issue, and we will include this in the inspections and subsequent measures."
He also clarified, "There are misunderstandings, but as I have repeatedly said, I have never mentioned the tenure of the Woori Financial Group chairman or key executives," explaining, "Since 2022, I have not commented on whether a certain person is good or bad for financial holding companies and banks. I have continuously pointed out operational risk issues related to specific individuals."
Lee Bok-hyun, Governor of the Financial Supervisory Service, is speaking at a meeting with experts from the construction industry and real estate market held on the morning of the 20th at the Housing Construction Hall in Yeouido, Seoul. Photo by Yonhap News
Regarding the revision of Hana Financial Group's '70-year-old rule,' he commented, "Personally, I think (Hana Financial Group Chairman Ham Young-joo) will not take a form that could be criticized as 'self-renewal' or similar." Earlier, Hana Financial Group revised its internal regulations on the 2nd to allow directors to serve beyond the age of 70. Under the previous regulations, Chairman Ham, who is 68 years old, could only serve for two years until the first general meeting of shareholders after turning 70 in March 2027, even if reappointed. With this revision, if Chairman Ham succeeds in renewing his term, he can be granted a three-year term until March 2028.
Lee also added about NongHyup Financial Group, "The NongHyup Central Association is expected to appoint someone with experience in soundness and risk management, as well as affection for or understanding of farmers and agriculture."
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