Eunwook Lee: "Financial Public Institutions Must Deliver Results and Be Accountable to the Public" (Comprehensive)

Business Briefing of Financial Public Institutions under the Financial Services Commission Held on the 13th
Eunwook Lee: "Financial Public Institutions Must Move Beyond Merely Delivering Government Policy"

On the afternoon of the 13th, Eunok Lee, Chairman of the Financial Services Commission, received reports on future business directions and key tasks from Korea Development Bank, Industrial Bank of Korea, Korea Credit Guarantee Fund, Korea Inclusive Finance Agency, Credit Recovery Committee, Korea Asset Management Corporation, Deposit Insurance Corporation, and Korea Housing Finance Corporation during a business briefing held at the annex of the Government Seoul Office in Jongno-gu, Seoul. Discussions were held regarding detailed strategies for productive finance, inclusive finance, and trusted finance. Financial Services Commission

Eunwook Lee, Chairman of the Financial Services Commission, emphasized, "Financial public institutions are not merely organizations that deliver government policies," adding, "They are responsible entities that turn policy directions into reality in the field and are accountable to the public for their outcomes and results."

"Financial Public Institutions Must Deliver Policy Results and Be Accountable to the Public"

Chairman Lee made these remarks during a business briefing for financial public institutions under the Financial Services Commission, held at the Government Seoul Office in Jongno-gu, Seoul, on the 13th. He stated, "Today's business briefing for public institutions is being broadcast live to the public," and added, "This is not merely a change in format, but an important turning point that clarifies for whom financial public institutions work, to whom they must explain themselves, and to whom they are accountable."

He continued, "We will examine whether Korea Development Bank, Industrial Bank of Korea, and Korea Credit Guarantee Fund, which are leading the major shift toward productive finance, are properly fulfilling their role as a catalyst by channeling market funds into high-tech industries, regional economies, startups, venture businesses, and small and medium-sized enterprises."

He further explained, "We will also review how Korea Inclusive Finance Agency, Credit Recovery Committee, and Korea Asset Management Corporation, which are responsible for inclusive finance, are implementing 'finance that saves lives' by restoring financial accessibility for vulnerable groups and providing opportunities for recovery so that people can get back on their feet after failure or crisis."

Additionally, he stated, "We will review the overall operations of Deposit Insurance Corporation, focusing on its role in financial stability as a safety net for the economy, and Korea Housing Finance Corporation, focusing on its responsibilities in the field of housing finance, which is directly linked to the lives of the people."

Korea Development Bank Chairman: "National Growth Fund Could Exceed 30 Trillion Won This Year"

During the business briefings by each institution, Park Sangjin, Chairman of Korea Development Bank, spoke about the National Growth Fund, which aims to provide 150 trillion won in support for high-tech strategic industries over five years. He said, "Although our goal is to approve 30 trillion won this year, we will consider additional approvals if the industry requires it."

Chairman Park stated, "The industry is supportive of the fund initiative, and investment demand has surpassed 150 trillion won." He added, "We have established a fund secretariat and hired external experts, and financial institutions will conduct their own screening processes. We are also improving the performance evaluation system to provide motivation for achievement."

Industrial Bank of Korea announced that it will invest more than 300 trillion won by 2030 to drive the major shift toward productive finance. Kim Hyungil, Executive Vice President (acting CEO) of Industrial Bank of Korea, said at the Financial Services Commission business briefing on the 13th, "To focus on productive finance, we will implement the 30-300 project, supporting more than 300 trillion won in productive finance over the next five years."

The plan includes allocating 250 trillion won to the small business sector and 20 trillion won to the venture investment infrastructure sector. A total of 37.8 trillion won will be invested in the consumer-centered trusted finance sector, and 10 trillion won will be invested in the National Growth Fund. The National Growth Fund will primarily focus its investments on energy and infrastructure.

Kim Seongsik, President of Deposit Insurance Corporation, stated, "We will do our utmost to introduce the financial stability account, which will provide proactive funding support to prevent financial institution insolvency in times of market liquidity shortages." He added, "If a financial institution becomes insolvent, we will swiftly resolve the insolvency and work to prevent the crisis from spreading by introducing a prompt resolution system and improving the resolution process."

Kim Eunkyung, President of Korea Inclusive Finance Agency, emphasized the need to expand education so that military personnel do not become credit delinquents due to a lack of financial knowledge. She explained, "As the salary for sergeants increases and is saved in a matching (contributory) format, there are cases where a large sum becomes available at once, but it is often mismanaged." She added, "There is also a possibility that some may become credit delinquents by spending game money on their phones at night."

Korea Asset Management Corporation (KAMCO) reported that participation by lending companies in the New Leap Fund, which provides debt relief for vulnerable borrowers, has been low. Jeong Junghoon, President of KAMCO, explained, "Most of the lending company receivables are held by the top 30 companies, but as of the beginning of this year, only 12 companies have joined the New Leap Fund." He added, "Unlike banks or credit card companies, lending companies may have overdue receivables that make up all or nearly all of their assets and business operations. Since they have to transfer their key assets, it is difficult for them to join the New Leap Fund."

He emphasized, "We will do our best to ease various difficulties by facilitating acquisitions at the right time and providing incentives, so that most lending companies can join the New Leap Fund by the end of the year."