Woori Chairman Supports Capital Market Integration

By Na Jeong-ju

Staff Reporter

Woori Financial Group Chairman Bahk Byong-won yesterday called on the National

Assembly to pass a bill on the consolidation of capital markets, presented by the

Ministry of Finance and Economy, as soon as possible.

The former vice minister of finance and economy said the passage of the bill was

vital to enhance the overall competitiveness of the country’s financial market and

to provide better financial products to consumers.

Bahk’s view on the bill, which aims to remove the boundary between security firms

and banks, among others, is in stark contrast to those of bank managers, who argue

the bill will be the bane for the whole banking industry.

If the bill is passed, brokerage houses will be able to provide basic banking

services, including remittance and currency exchange, and share banking systems with

lenders. Those who have accounts at security firms can also withdraw money through

public ATMs and cash machines at banks.

``There are various conflicting interests over the bill. The National Assembly should

make the right decision in consideration of the national interest,’’ Bahk said in

an interview with Yonhap News Agency.

Bahk, who quit his public service early this year to apply for the chairman of Woori,

played an important role when the ministry drew up the bill and presented it to the

Assembly late last year.

Bahk’s comments came after Bank of Korea (BOK) Governor Lee Seong-tae made it clear

last Thursday that he was opposed to granting banking services to securities firms,

citing their weaker financial status of and the unfavorable responses from bankers.

Lee noted the bill runs counter to the principle that financial firms should compete

on a level playing field, saying it discriminates against banks.

Some lawmakers of the governing Uri Party also called the bill ``incomplete,’’

saying it will remove the barrier for Samsung Group, which has Samsung Securities

under its wing, to provide banking services to the public.

``Every law has pros and cons. It can be boon for some parities and be bane for other

parties,’’ Bahk said. ``The bill is like the country’s free trade deal with the

United States, which divided many interest groups. Lawmakers can’t move on further

if they just listen to those who oppose it.’’