[2025 Audit] FSC Chairman Lee Eogwon: "Considering Practical Solutions for Easing Separation of Banking and Commerce"

Lee Eogwon, Chairman of the Financial Services Commission, stated regarding the separation of banking and commerce, "We are considering how to address this issue practically while upholding the fundamental principles of the system."

Chairman Lee made this remark on the morning of October 20 during the National Assembly audit by the Political Affairs Committee, in response to Kangil Lee, a member of the Democratic Party of Korea, who asked about his stance on easing the separation of banking and commerce. He explained, "The separation of banking and commerce was introduced as an institutional necessity to prevent industrial capital from using financial capital as a private safe and to curb the excessive abuse of control by financial capital through the use of other people's capital. However, there is an increasing need to rationalize or improve the system amid intensifying investment competition."

Lee Eokwon, Chairman of the Financial Services Commission, is taking an oath at the National Assembly's Political Affairs Committee during the National Assembly audit of the Financial Services Commission and others on October 20, 2025. Photo by Kim Hyunmin

He added, "The Fair Trade Act has prevented industrial capital from entering the financial sector, but the key is how to resolve this practically. In the financial sector, we are moving towards allowing greater equity investment in areas with a strong connection to finance, such as fintech, when financial companies expand into IT. We will consult with relevant ministries, including the Fair Trade Commission, to examine how to address the practical issues we are facing."

Chairman Lee also responded to Choo Kyungho, a member of the People Power Party, who asked whether he was open to a more progressive approach to easing the separation of banking and commerce. He said, "When focusing on the entry of industrial capital into the financial sector, the key is how to enhance the CVCs of general holding companies. Rather than addressing all regulations, we will focus on the specific areas where issues have been raised."