Lee Eokwon: "Additional Lending Regulations If Household Debt Problem Persists" (Comprehensive)

"If the household debt problem persists, additional lending regulations will be implemented immediately"
On the dissolution of the Financial Services Commission: "Difficult to express an opinion as a nominee"

Lee Eokwon, the nominee for Chairman of the Financial Services Commission, appeared at the confirmation hearing held by the National Assembly's Committee on Economy and Finance on the 2nd and responded to questions from lawmakers. 2025.9.2 Photo by Kim Hyunmin

Lee Eokwon, nominee for chairman of the Financial Services Commission, stated that if the household debt issue persists, additional lending regulations will be implemented immediately. He emphasized that he would contribute to strengthening the growth engine of the Korean economy by shifting the financial sector's capital intermediation function toward "productive finance." Regarding the potential dissolution of the Financial Services Commission, he refrained from commenting, saying it would be inappropriate for him as a nominee.

"If the household debt problem persists, additional lending regulations will be implemented immediately"

At the confirmation hearing held by the National Assembly's Political Affairs Committee on September 2, Lee said, "I will maintain a consistent and firm stance on household debt management," adding, "If necessary, I will implement additional measures immediately."

When asked how he evaluates the June 27 real estate measures, he responded, "Many assess that the June 27 measures have been effective in the short term, especially as the increase in household debt, centered on mortgage loans in the Seoul metropolitan area, has accelerated since April."

Regarding questions about household debt management policies, he replied, "Quantitatively, it is impossible to sharply reduce the total volume of household debt, so we will gradually and progressively decrease it." He also stated that a comprehensive management plan is needed for both the supply and demand sides of lending. Lee explained, "On the supply side, lending should be redirected toward productive finance, such as corporate activities, and on the demand side, loans should be provided in line with borrowers' repayment capabilities so that both supply and demand can be reduced together."

In response to concerns that high-risk groups, such as low-income households, could become an economic time bomb during the process of reducing total household debt, he said, "I believe this should be managed well through inclusive finance for ordinary citizens."

He also addressed the necessity of productive finance, a policy being promoted by the Lee Jaemyung administration. He stressed, "It is urgent to shift the capital intermediation function of finance to productive sectors such as advanced technology, venture businesses, innovation, and regional economies."

He continued, "The top priority is to implement policies that enable finance to help address the structural challenges currently facing the Korean economy, such as slowing growth, population decline, trade disputes, and changes in industrial structure, and to expand growth engines to prepare for the future."

He also promised to establish a robust consumer protection system. Lee stated, "To support the recovery of the real economy, which is suffering from the slowdown in growth, we will expand financial inclusiveness," adding, "We will establish a financial consumer protection system to prevent further harm to citizens from financial crimes and accidents."

Lee Okwon, nominee for Financial Services Commission chairman, is reviewing documents at the confirmation hearing held by the National Assembly's Political Affairs Committee on September 2, 2025. Photo by Kim Hyunmin

On the dissolution of the Financial Services Commission: "Difficult to express an opinion as a nominee"

When asked to state his position on the proposed dissolution of the Financial Services Commission, Lee replied, "It is not appropriate to speak or discuss based on hypothetical scenarios."

The National Policy Planning Committee has been discussing a plan to transfer domestic financial policy responsibilities currently held by the Financial Services Commission to the Ministry of Economy and Finance, and to merge the Financial Services Commission with the Financial Supervisory Service to create a new Financial Supervisory Commission. Previously, in response to advance questions, Lee also asked for understanding, saying, "It is difficult to express an opinion on matters that could have a broad impact on the financial market when a specific plan for restructuring the financial supervisory system has not yet been released."

In response to criticism from Yangsoo Lee, a lawmaker from the People Power Party, that "there is no sign of conviction to defend the Financial Services Commission," Lee answered, "If the details are made public and I am given the opportunity to express my opinion, I will speak up as needed at the appropriate time."

Regarding suspicions of speculative investment in the gap between prices of Gangnam reconstruction apartments, he said, "I am well aware that, from the public's perspective, there may be grounds for moral criticism." Lee was accused of purchasing apartments before reconstruction in 2005 and 2013 and not living in them as he moved overseas. It is reported that the Gaepo-dong Jugong Apartment he purchased in 2013 saw a capital gain of about 4 billion won after reconstruction.

He explained, "When I moved overseas, I changed residences twice according to my circumstances," adding, "I am currently living in that apartment and plan to stay there for the rest of my life." When asked about criticism that "strengthening lending regulations now causes resentment among those without homes," unlike when he purchased his apartment, he responded, "I will take your comment to heart and keep it in mind."

Lee also commented on receiving approximately 620 million won in salary and other compensation over three years while working for several companies after retiring as Vice Minister of Economy and Finance, saying, "I must consider whether this is appropriate from the public's perspective."