Anna Jiwon Park has been covering the politics at The Korea Times since the summer of 2024, when she joined the press pool for the Office of the President in Korea. Prior to that, she spent about five years reporting extensively on financial markets, regulatory authorities and the financial industry. She joined The Korea Times in 2019 after spending eight years as a broadcast journalist at Arirang TV, Korea’s leading global broadcaster, covering politics, defense and culture.
FSC chief urges financial firms to strengthen support for self-employed
Financial Services Commission (FSC) Chairman Kim Joo-hyun, left, speaks during a meeting with heads of associations of financial industries, including banking, investment, savings banks, insurance and credit, at the headquarters of the Korea Financial Investment Association (KOFIA) in Seoul, Monday. Courtesy of FSC
By Anna J. Park
Head of financial regulator calls on firms to manage household debt risks
Financial Services Commission (FSC) Chairman Kim Joo-hyun has urged representatives from various financial industries to alleviate the difficulties borne by self-employed businesses and small store owners across the country.
Kim also pointed to the financial firms' "record-high interest income," asking them to draw up more practical measures for those bearing the most burden from the rising interest costs.
"I hope the financial sector pays sincere attention to the grievances of self-employed business owners and small business owners who have been enduring financial difficulties due to accumulated debt during the COVID-19 period as well as increased debt costs from rising interest rates during the post-COVID-19 period," the FSC chief said during a meeting with heads of the country's financial associations representing the banking, investment, credit, savings bank and insurance sectors, in Seoul, Monday.
Kim highlighted that the record-high level of interest income enjoyed by the financial industries means a record-high level of interest burden on the part of the public.
"While the financial sector posts all-time-high net profits in the recent high-interest rate periods, the source of these profits is more about the simple increase in interest rates rather than the result of innovative efforts to enhance consumer benefits," Kim criticized.
"In line with the record-high net profits, it is expected that the financial associations should assume a more advanced social role in alleviating the difficulties faced by self-employed businesses and small business owners, who constitute the backbone of the national economy."
He vowed that the government will also continue to provide a variety of policy supports for them, yet emphasized that such efforts need private sector support to achieve tangible results. Kim also urged the financial sector to manage risks stemming from household debt, which could become a major obstacle to the national economy's recovery.