FSC Chairman Lee Eok-won's opening remarks at national audit
'Strict management of household loans to continue, including limits on speculative demand'
'Supply expansion so vulnerable groups can feel the lowered barriers to finance'
'Rationalization of prudential regulations to drive productive finance in the private sector'
Financial Services Commission Chairman Lee Eok-won said Thursday that the agency will pursue lifting network-separation regulations on the condition that security measures are in place, in response to recent AI-related hacking incidents in the financial sector. He also stressed the need to expand productive finance, including support for vulnerable borrowers seeking a fresh start, and to broaden such financing in the private sector.
Speaking at the opening of the National Assembly's national audit of the FSC, held Thursday morning at the National Assembly in Yeouido, Seoul, Lee said the agency is "pursuing the lifting of network-separation regulations, premised on security, to support innovation and the strengthening of security capabilities in the financial sector." He went on to say the FSC is "solidifying market stability, breaking with outdated practices, and building a financial system that the public can trust."
On household debt management, Lee said the FSC will "maintain a strict management stance, including limiting speculative loan demand, while working to ensure an adequate supply of low-income financial products and mid-rate loans." He added that the agency will "push ahead without delay on strengthening targeted support for genuine homebuyers and expanding financial support to promote housing supply."
On the Digital Asset Basic Act, he said the FSC will "work to ensure that legislation to foster a sound ecosystem is advanced as quickly as possible."
On inclusive finance, Lee pledged to "lower the interest rate level of policy-based low-income financial products and continuously expand supply through new product launches, so that vulnerable groups can feel the lowered barriers to finance." He also promised to "upgrade support for long-term delinquent borrowers seeking a fresh start."
He added that through the New Leap Fund and similar vehicles, the FSC will "restructure or write off existing debts that are difficult to repay, and overhaul the management framework to prevent the mass accumulation of long-term delinquent bonds."
Lee also emphasized productive finance as a driver of economic growth. He said the FSC has been "inducing the expansion of productive finance in the private sector through the rationalization of prudential regulations," and that the National Growth Fund will be expanded to 200 trillion won ($149 billion), with the range of eligible recipients and the scale of direct investment also set to increase.
He added that the FSC will "expand the share of policy finance directed to regional areas and actively provide preferential financing to leading regional strategic industries and companies relocating outside the capital, in connection with the '3 Mega Projects' and '5-Pole 3-Special' strategies."
hyuk@heraldcorp.com
