Chairman Lee Eokwon Holds First Meeting with Bank CEOs: "Actively Supply Productive Finance"

Guiding Funds from Real Estate to Advanced Industries
Calls for Swift Recovery from 'National Information Resources Fire' Before Meeting
Urges Active Participation of Banks in Bad Bank

Yonhap News Agency

At his first meeting with bank CEOs since taking office, Chairman Lee Eokwon of the Financial Services Commission urged, "As the government has improved capital regulations for banks to expand their investment capacity, I ask that banks also demonstrate a proactive commitment to providing productive finance in line with the intent of these regulatory improvements."

The Financial Services Commission announced that on the 29th, it held a 'Financial Services Commission Chairman-Bank CEOs Meeting' at the Bankers’ Club in Seoul, bringing together the CEOs of 20 banks to discuss a major transformation in the financial sector.

The meeting was organized to discuss the direction banks should take to address the various structural challenges facing the Korean economy and to promote sustainable growth.

"Actively Provide Productive Finance"... Request for Participation in Bad Bank Also Made

Before the meeting began, Chairman Lee first mentioned the recent fire accident at the National Information Resources Service. He said, "To ensure that citizens do not experience inconvenience due to disruptions in financial services, please continue to promptly and thoroughly inform the public about the nature of any service disruptions and available alternative transaction methods as the situation evolves."

Chairman Lee emphasized again regarding productive finance, "As the government has improved capital regulations to expand banks’ investment capacity and enable more efficient use of capital, I urge banks to proactively supply productive finance."

He also addressed consumer-centered finance, stating, "Banks, who best understand their borrowers’ circumstances, should play a role in helping delinquent borrowers return to economic activity as quickly as possible." He added, "With the upcoming launch of the long-term delinquent debt adjustment program, I ask banks to take a leading and active role, such as by bearing most of the private sector’s contribution to the purchase of delinquent bonds."

Regarding trust in finance, he called for thorough management of household debt and careful monitoring of risk factors such as business restructuring in key industries. Chairman Lee stated, "In response to recent hacking incidents in the financial sector, we will swiftly implement institutional improvements, including the introduction of punitive fines, in addition to taking strict action based on a thorough investigation of the causes." He also asked bank CEOs to review their security systems under their own responsibility and to strengthen internal management systems.

Banking Sector Agrees on Need to Shift from Real Estate Focus... Promises to Promote Productive Finance

Participants, including Eunwook Lee, Chairman of the Financial Services Commission, attending the 'Financial Transformation Conference' held at the Korea Federation of Small and Medium Business in Yeouido, Seoul, on the 19th, are taking a commemorative photo. 2025.09.19 Photo by Dongjoo Yoon

The chairman of the Korea Federation of Banks and the bank CEOs expressed their agreement with the financial authorities’ direction. The banking sector also stated its position that funds concentrated in real estate should be sufficiently supplied to ordinary citizens, genuine demanders, and businesses.

The bank CEOs announced plans to promote the activation of productive finance by identifying and actively funding future strategic industries such as artificial intelligence and semiconductors, as well as new growth and innovative venture companies that will drive the Korean economy forward. They also suggested that further improvements in capital regulations are necessary to ensure banks have sufficient capacity to supply funds during this process.

Additionally, they expressed their intention to actively participate in the National Growth Fund to support the related ecosystem. On the morning of the same day, Woori Financial Group announced a plan to invest a total of 80 trillion won in productive finance. For the first time among private sector entities, it pledged to contribute 10 trillion won to the National Growth Fund. Woori Financial Group Chairman Lim Jongryong stated, "Woori Financial Group is committed to playing a pioneering role in future co-growth," adding, "Considering the scale of resources available at Woori Financial Group and its approximately 10% share of the entire financial sector, we have decided to contribute 10 trillion won to the National Growth Fund."

They also announced plans to continue providing customized financial support for financially vulnerable groups such as low-income individuals and small business owners, and to improve accessibility to financial products and services. Furthermore, they expressed strong support for the purpose of the long-term delinquent debt adjustment program as a means of social integration to help delinquent borrowers recover, and indicated that the banking sector would actively participate to fulfill its social responsibility.

They also presented directions for enhancing trust in finance. In addition to managing household debt, strengthening internal controls, and enhancing consumer protection, they are pursuing various measures such as improving processes in areas vulnerable to security incidents and reinforcing the safety net across the entire financial group.

The need for banks to participate in social agendas was also discussed. The banks stated that, as announced, they would contribute to the spread of socially responsible management by reflecting records of serious industrial accidents in credit evaluations. They also agreed with the purpose of expanding the supply of funds within local regions and suggested the need for incentives to support such expansion.

Chairman Lee of the Financial Services Commission responded, "Let us move forward together toward the goal of a major transformation in finance," adding, "The government and related agencies will also work to enhance the public interest and transparency of financial administration and supervision overall, as well as to establish consumer-centered finance."