Leaders Urge to Pass Finance-Related Bills
By Kim Jae-kyoung
Staff Reporter
Heads of five finance industry associations have called for an early passage of five key finance-related bills designed to reform the industry and tide over the current economic turmoil.
The move came Tuesday as concerns mounted that a delay of the passage of the bills beyond April is expected to impede planned corporate restructuring scheduled to take place from May. It was the first time for the heads of banking, securities, investment, asset management and insurance associations to visit the National Assembly to lobby for swift passage of the financial bills.
The call was led by Korea Federation of Banks Chairman Shin Dong-kyu, Korea Life Insurance Association Chairman Lee Woo-cheol, General Insurance Association of Korea Chairman Lee Sang-yong, Korea Federation of Savings Banks President Kim Seok-won and Credit Finance Association Chairman Chang Hyung-duk
The leaders met with National Assembly Speaker Kim Hyong-o, ruling Grand National Party (GNP) floor leader Hong Joon-pyo, GNP chief policymaker Yim Tae-hee and opposition Democratic Party (DP) chief policymaker Park Byeong-seok to deliver a request for swift legislation.
They requested that the Assembly pass five key bills in April ― the Banking Law, designed to lower the walls barring chaebol from investing in banks; the Financial Industry Restructuring Law; the Financial Holding Company Act; the Korea Development Bank (KDB) Privatization Act; and the Korea Asset Management Corp. (KAMCO) Act.
Their unusual request demonstrates the urgent need for the passage. The Financial Industry Restructuring Law rules the establishment of restructuring fund and financial stabilization fund, while the KAMCO Act governs the creation of a shipbuilding fund.
A delay in legislation, accordingly, means that restructuring of the shipbuilding and construction industries, the biggest headache for Asia's fourth largest economy, will be held up. The passage of the KDB Act is also a must for its privatization, they said.
However, it is still uncertain whether the bills will be passed in April, as the DP is deadly set against the revised banking law and KDB Act. The opposition party warned that chaebol control of banks would have serious repercussions and the risk of a possible collapse of banks and industrial giants. The party also said privatization of the KDB was not necessary.