Chairman Kim Byunghwan: "If Household Loans Increase Significantly, We Will Take All Possible Measures"

Financial Services Commission Chairman's March Press Briefing
Household Loans in March Decrease Compared to February
Regional Monitoring in Seoul
"MG Insurance Will Be Handled According to Laws and Principles"
"Fair Review More Important Than Timing for Woori Financial Group"

Kim Byung-hwan, Chairman of the Financial Services Commission, is attending the regular press briefing held at the Government Seoul Office in Jongno, Seoul on the 26th, answering questions from the press. 2025.3.26 Photo by Jo Yong-jun

Kim Byung-hwan, Chairman of the Financial Services Commission, said on the 26th, "If the situation changes in the second quarter and loans increase significantly, we will put all possible measures on the table and take appropriate actions according to the situation."

At the monthly press briefing held at the Gwanghwamun Government Seoul Office that day, Chairman Kim said, "(Household loans) surged significantly in the second quarter of last year, but this year we will manage them on a monthly and quarterly basis," adding, "If this works, we expect the loan volume not to spike significantly."

Chairman Kim anticipated that the increase in household loans in March would be smaller than in February. He emphasized, "As of March 20, the numbers show a noticeable decrease in the growth rate compared to February," and added, "Since it takes one to two months from signing a housing contract to loan approval, we are closely monitoring the household loan situation without letting our guard down."

In particular, regarding criticism that the household loan policy lacks consistency, Chairman Kim explained, "When there is only one control variable or objective function, criticism of 'flip-flopping' policies is valid," and stated, "We are in a situation where household debt must be managed during a period of base interest rate cuts."

He pointed out, "The situation we face involves two objectives: managing the household loan growth rate at an appropriate level from a macroprudential perspective, and reflecting the widening gap between loan interest rates and the base rate during the period of interest rate cuts."

He continued, "The way to achieve these goals ultimately lies in bank screening," and said, "There is a method to individually reduce personal loan limits through screening, and a method to filter out real estate speculative demand and supply loans first to those who need them."

Regarding the sale of MG Insurance, Chairman Kim reiterated, "We will handle it according to laws and principles." With Meritz Fire & Marine Insurance withdrawing from acquiring MG Insurance, the possibility of liquidation is also being mentioned.

Chairman Kim explained, "We have principles of establishing a sound market order, protecting insurance policyholders, and stabilizing the financial market, but the options have become very limited," adding, "We will carefully examine the most desirable and feasible options and present a plan within a reasonable time."

Regarding the review of Woori Financial Group’s insurance company acquisition, he said, "The Financial Services Commission will conduct the review according to established procedures," and added, "Ensuring a fair review is more important than the schedule." He also mentioned, "The Financial Services Commission’s review subcommittee conducts the initial review, and we will try not to prolong that period unnecessarily."