Seongsu Eun, Chairman of the Financial Services Commission. yunhap news
The heads of financial authorities and major financial associations have suggested that financial innovation, financial risk preparation, and financial consumer protection, as well as continuing financial support for the victims of Corona 19, as tasks that the financial sector should focus on in the new year. Seong-soo Eun, chairman of the Financial Services Commission, said in his New Year’s address on the 1st, “We will make the overcoming of the Corona 19 crisis as our top priority this year, following last year, but we must prepare for a leap forward in the Korean economy and finance after the corona so that we can turn this crisis into an opportunity.” And financial stability, innovative growth, and restoration of trust were suggested as four key directions. Chairman Eun said that it will continue to provide financial support to small business owners through the establishment of a special support program for small business owners and the reorganization of the second commercial bank program, while expanding policy finance programs for small and medium-sized businesses. In addition, he said liquidity is expanding and private sector debt is increasing in the process of responding to the crisis. He said that in order to minimize the impact that may occur during the normalization process, it plans to devise a plan for a soft landing of financial support that takes into account the payment capacity of individuals and companies. In addition, he said he will try to restore trust in finance by establishing a comprehensive financial support system for innovative companies and establishing a future-oriented financial consumer protection plan to find a reasonable balance between revitalization of the financial market and consumer protection.
Seok-Heon Yoon Head of Financial Supervisory Service
Financial Supervisory Commissioner Yoon Seok-heon said that as a national risk manager in the strict internal and external economic and financial environment, the FSS will focus on four tasks: strengthening the resilience of the financial system, strengthening financial intermediary capabilities, protecting financial consumers and strengthening inclusive finance, and supporting financial innovation. said. Director Yoon said, “It is necessary to preemptively prepare for the delayed economic recovery due to the prolonged Corona 19 and the expected cliff effect when financial support is reduced.” “We urge financial companies to improve their ability to absorb losses and accumulate sufficient provisions and We will strengthen management and ensure that internal control and risk management are not neglected.” In particular, Director Yoon recalled the private equity situation last year and said, “The most regrettable thing is that we should have stepped on the’break’ more confidently in 2014 and 2015 when deregulation of private equity funds was discussed, but unfortunately we could not. “Reflected. “Many experts, including IMF, emphasize the check and balance between the financial industry promotion policy and the supervisory policy, and the unification of supervisory policy and enforcement,” he said. “This is the accelerator pedal and finance that put the weight on fostering and deregulating the financial industry. “It means that the brakes that aim for stability and consumer protection should work in a balanced way.” He added, “In order to effectively prevent recurring financial accidents and restore trust in finance through this, in-depth discussion is needed on what is an effective financial supervisory system.”
Kwang-soo Kim, Chairman of the Bank Federation
Bank Federation Chairman Kim Kwang-soo suggested five keywords that financiers would like to think about in order to make the New Year a turning point in overcoming the crisis: digital transformation, retreating globalization, eco-friendly paradigm, expanding inequality, and consumer protection. “The retreat of globalization, coupled with the reorganization of the global supply chain and the increase in debt of economic entities, is also predicting the possibility of amplifying macroeconomic uncertainties such as the economic crisis in emerging countries.” While continuing to provide financial support to the industry, it is necessary to strengthen proactive risk management in preparation for the uncertainties that may be caused by economic and industrial restructuring.” By Park Hyun, staff reporter [email protected]