I met the five major financial holding companies in the ruling party… There was no discussion on the benefit-sharing system

The chairmanship of the five major financial holding companies (KB Kookmin, Shinhan, Woori, Hana, and Nonghyup) gathered in one place with the government and the ruling party amid the controversy over the profit sharing system. This is to discuss detailed support plans for the K New Deal, worth 70 trillion won, determined by the financial sector last year.

At the K New Deal meeting held at the Banking Federation on the 22nd, the ruling party asked the financial sector to “send loans to companies, not real estate,” and the financial sector also responded “to ease regulations to increase investment by growing companies.” There was no discussion about the interest-sharing system and interest halt.

◆ Five Major Holdings “Please Deregulation for Corporate Investment”

Bank Federation Chairman Kim Kwang-soo said, “I focused on the difficulties of the financial sector that participated in the K New Deal.”

“When investing in a startup, if the risk-weighted asset (RWA) increases, the equity capital ratio of the Bank for International Settlements (BIS) decreases, but it was suggested that lower RWA standards would allow more investment with limited resources.” did.

Chairman Kim said, “The National Assembly’s Political Affairs Committee sets next month as the month of deregulation and promotes 26 bills, and at this time, he said that he is trying to deregulate.”

In addition, it is reported that the financial sector has also requested’tax incentives’ to ease the tax rate due to long-term holdings of corporate shares.

In addition, Rep. Kim Jin-pyo, chairman of the Democratic Party’s National Economic Advisory Council, criticized “It is not desirable that 55% of all domestic loans are in real estate,” and “according to statistics from the Bank of Korea, 2,200 trillion of domestic loans are real estate finance.”

He also pointed out that “half of that, 1,100 trillion won is heavily invested in commercial office buildings mainly by pension funds, mutual aid associations, public enterprises, and large corporations.”

Rep. Kim said, “In the United States, the K-Unicorn growth strategy is not done by the National Assembly, but by financial institutions,” he said. “It is financial institutions that do risk assessment better than anyone and invest.”

In this regard, Chairman Kwang-soo Kim said, “In the banking sector, the appraised value of office buildings is reflected at 50-70% of the market price, and credit is made.” It was a suggestion that we should do it, but in fact, the banks are all autonomous.”

◆ Don’t discuss the profit sharing system… K New Dildo time is running out

At the meeting on this day, it was reported that there were not many discussions about the’profit sharing system’ or loan regulation that the ruling party is promoting recently. The attendees said that the time was tight even to discuss the K New Deal.

Currently, the ruling party is discussing a’interest stop method’ that temporarily does not receive interest on banknotes.

In addition, the ruling party’s leadership is planning to legislate the’profit sharing system’ next month, in which companies that have benefited from Corona 19 contribute funds to pay the affected industries. The recognition of the passport is that the financial sector is at the center of the sector that has made a profit.

The meeting was attended by KB Finance Chairman Yoon Jong-gyu, Shinhan Finance Chairman Yong-Byeong Cho, Woori Finance Chairman Son Tae-seung, and NH Nonghyup Finance Chairman Ji Sung-gyu Hana Bank Chairman.

Hana Bank Chairman Kim Jeong-tae did not attend due to personal schedule. Chairman Kim’s term of office expires in March, and there is a prospect that banknotes will continue to serve for organizational stability in a poor business environment due to the coronavirus outbreak.