Regarding the 20% limit on dividends for financial holdings, “Please understand the situation for capital soundness in Corona 19”
▲ Financial Supervisory Commissioner Eun Seong-soo and Financial Supervisory Commissioner Yoon Seok-heon are talking while waiting for the Political Affairs Committee general meeting at the Yeouido National Assembly in Seoul on the afternoon of the 17th. (yunhap news)
Heads of financial authorities expressed concern over the recent steepening increase in household loans. In the meantime, he emphasized the need to improve the system so that household loans can be stabilized in line with the repayment ability by strengthening the total debt principal repayment ratio (DSR).
On the 17th, Eun Seong-soo, chairman of the Financial Services Commission of the National Assembly, responded to the question of Democratic Party lawmaker Ogi-hyung, saying,’How do you perceive household loans exceeding 100% of gross domestic product (GDP)? I am concerned about it.”
Chairman Eun said, “At a meeting with the chairmen of financial holdings yesterday, he said that household debt should not increase.”
Financial Supervisory Service Director Yoon Seok-heon also said, “(Household loan trend) is closely monitored by daily monitoring and weekly meetings. There is a view that there is a view, but I am worried that the accumulation of household debt will further shrink consumption, which has already shrunk.”
Director Yoon emphasized, “It is correct to go toward strengthening DSR in the long-term direction,” and emphasized that “the basic concept is that when borrowing (money), it should be linked to the individual’s repayment ability.”
The Financial Services Commission plans to announce a plan to advance household debt management next month. We are reviewing the DSR management method operated by financial companies in a step-by-step conversion to the borrower (loan user) unit.
At the business report on the day, a question was raised regarding the financial authorities’ limiting the dividend payout ratio of financial holding companies to 20% or less.
Regarding this, Chairman Eun said, “Please understand that it is not intended to damage or harass shareholders, but that it is for the soundness of capital in the corona19 situation.” .