Lee Okwon: "2026 Household Debt Management to Be Further Strengthened... Growth Rate to Be Kept Below 1.8%"

Announcement of Reverse Mortgage Program Improvements and Financial Sector Governance Measures
Strengthening Shareholder Control Over CEO Reappointments
Ongoing Discussions on Designating the Financial Supervisory Service as a Public Institution

The Financial Services Commission has announced its intention to further strengthen household debt management this year. At the same time, the commission will increase the amount of housing pension payments and, regarding financial sector governance, will prepare effective improvement measures by the end of March.

Yonhap News

Maintaining a Stronger Stance on Loan Management... "Bank Loan Growth Rate to Be Kept Below 1.8%"

On January 28, Lee Okwon, Chairman of the Financial Services Commission, held a regular press briefing and stated, "The 2026 household debt management plan will set even more stringent targets than last year," adding, "We will ensure that the growth rate of household loans in the banking sector is managed to be lower than the current level of 1.8%."

Chairman Lee emphasized that household debt is a potential risk factor for the Korean economy, stating, "We will maintain a consistent and firm stance on strengthening management." The commission plans to announce the 2026 household debt management plan reflecting this stance at the end of February. The plan will be based on strengthening total volume management, while also maintaining the current policy of expanding the application of the Debt Service Ratio (DSR).

However, the commission also made it clear that it will coordinate its approach to ensure that efforts to curb household debt do not undermine inclusive finance. Chairman Lee explained, "Products such as Sae Hope Hallssi and mid-interest rate loans will be partially excluded from management targets to ensure that the supply of funds to medium- and low-credit borrowers is not reduced."

As part of its inclusive finance policy, the commission will also announce measures to improve the management of individual delinquent bonds in early February. Chairman Lee pointed out that there are issues such as the mechanical extension of the statute of limitations and repeated sales of bonds, which expose debtors to indefinite collection efforts.

Lee Okwon, Chairman of the Financial Services Commission, is attending and speaking at the Financial Services Commission Chairman-Youth Communication Meeting "Youth, Talking About the Future of Finance" held at Ondream Society in Jung-gu, Seoul on the 22nd. 2026.01.22 Photo by Dongju Yoon

National Growth Fund in Full Operation... Citizen Participation Product to Launch in Early June

The citizen participation-type National Growth Fund product, which allows the general public to participate, is being prepared for launch in early June. To this end, the commission has decided to launch a task force on citizen participation funds with relevant agencies starting today.

The commission will also hold a fund management committee meeting on January 29 to discuss the construction of renewable energy infrastructure as the first agenda item. Chairman Lee stated, "For the remaining six projects, we will continue to approve them sequentially, starting with those that are ready or urgently needed, depending on the progress and timing of funding requirements."

Chairman Lee also announced plans to hold regional roadshow business briefings to directly hear from the industrial field, given the strong regional demand for the National Growth Fund. He said, "It is necessary to explain what the National Growth Fund is and to understand the atmosphere and actual demand in the field so that it can be reflected in policy." Accordingly, Chairman Lee will personally visit advanced industry-focused regions for two days on February 11 and 12 to hold regional roadshow business briefings for the National Growth Fund.

Gathering Diverse Opinions on Strengthening Shareholder Control Over CEO Reappointments... Final Decision on FSS Public Institution Status to Be Made by Public Institutions Committee

Regarding the Financial Sector Governance Advancement Task Force currently in operation, the commission stated that it is collecting a wide range of opinions, including strengthening shareholder control over CEO reappointments.

Chairman Lee said, "We are discussing institutional improvements to enhance the independence and diversity of boards of directors, as well as the fairness and transparency of CEO appointment processes." He added that effective improvement measures will be prepared by the end of March, based on input from academia and the legal community, overseas cases, and the results of supervisory authority inspections.

Regarding whether the Financial Supervisory Service will be designated as a public institution, Chairman Lee said, "While there is consensus on the need to strengthen public interest and transparency, the final decision will be made through deliberation by the Public Institutions Committee," declining to elaborate further. He explained that, in addition to public institution designation, various measures such as strengthening the commission's oversight are also under consideration.

Chairman Lee also presented improvement measures for the housing pension. He stated, "Since a significant portion of the assets of the elderly is concentrated in real estate, the role of the housing pension is important," adding, "We will prepare measures to increase the overall amount of housing pension payments, provided that the soundness of the fund is not compromised."

He further mentioned that preferential measures for low-priced local housing owners are also being considered as part of efforts to address regional depopulation.