Contrary to Expectations, Discussion Focused on Enhancing Banking Sector Competitiveness and Parliamentary Support Measures
"No Discussion at All on Additional Interest Rates or Windfall Tax"
Lee Jae-myung, leader of the Democratic Party of Korea, met with bank presidents to listen to issues related to enhancing the competitiveness of the financial industry and other banking sector concerns. Contrary to expectations, there was no pressure to support win-win finance.
On the 20th, Lee met with the Democratic Party's Political Affairs Committee members, Cho Yong-byeong, chairman of the Korea Federation of Banks, and the presidents of the six major banks (KB Kookmin, Shinhan, Hana, Woori, NH Nonghyup, and IBK Industrial Bank) at the Bankers' Hall in Jung-gu, Seoul, during the 'On-site Meeting for the Recovery of the People’s Economy.'
At the meeting, the banks discussed the difficulties facing the domestic financial industry with Lee. Cho Seung-rae, chief spokesperson for the Democratic Party, told reporters after the meeting, “The bank presidents proposed to Lee measures to enhance international competitiveness and regulatory improvements in finance, as well as financial support for companies.”
Lee Jae-myung, leader of the Democratic Party of Korea, is delivering opening remarks at the 'Democratic Party-Banking Sector On-site Meeting for Livelihood Economic Recovery' held on the 20th at the Bankers' Hall in Jung-gu, Seoul. Photo by Yoon Dong-ju
They also agreed to actively communicate with the National Assembly’s Political Affairs Committee to resolve difficulties related to permits and approvals when domestic banks expand overseas. The bank presidents also suggested proactive responses to international credit rating agencies’ evaluations following the emergency martial law situation and ways to ensure that financial support leads to domestic demand and consumption.
There was also an opinion that it would be beneficial to secure transaction data to actively provide loans to small business owners. Min Byung-duk, a Democratic Party lawmaker, said, “The banks want to provide loans to small business owners, but due to high credit risk, they proposed that it would be helpful if transaction data could be easily obtained.”
Although the meeting was expected to discuss ways to expand win-win finance in the banking sector or excess profit taxes (windfall tax), no questions related to these topics were reported. Chief spokesperson Cho stated, “Topics such as additional interest rates or windfall taxes were not discussed at all today.”
Lee Jae-myung, leader of the Democratic Party of Korea, Cho Yong-byeong, chairman of the Korea Federation of Banks, and heads of commercial banks attended the "Democratic Party-Banking Sector On-site Meeting for Livelihood Economy Recovery" held on the 20th at the Bankers' Hall in Jung-gu, Seoul, posing for a photo before the meeting began. Photo by Yoon Dong-ju
Lee also firmly drew the line against criticism that he was putting excessive pressure on banks regarding win-win finance. He said, “It is not about forcing or coercing banks to gain something, as some have suggested,” adding, “Please feel free to talk about what banks need and what kind of help the political sector can provide without feeling burdened.”
In his opening remarks, he emphasized that since the Korean economy is in a difficult situation, the hardships of small and medium-sized enterprises and small business owners are multiplied, and urged finding solutions together. He said, “The reality is that the weaker people suffer much more pain when the situation is tough.” He added, “The role of banks is fundamentally to provide support, and I am grateful that they are fulfilling this role well and faithfully implementing various support measures prepared for these difficult times.”
Chairman Cho stated that various financial support measures for small business owners and self-employed individuals are planned, and that non-financial support through banks is also necessary. He said, “If banks install affordable payment kiosks for the self-employed, it would reduce operating costs for small business owners while allowing banks to secure transaction data and offer loans at lower interest rates.”
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