New FSC chief vows to facilitate innovative growth through deregulation

Financial Services Commission Chairman nominee Kim Joo-hyun speaks during a press conference at the headquarters of the Credit Finance Association (CREFIA) in central Seoul, Tuesday. Yonhap

Kim plans to support fintech, blockchain industries

By Anna J. Park

The Yoon Suk-yeol administration has appointed Kim Joo-hyun, the incumbent chairman of the Credit Finance Association of Korea (CREFIA), as chief of the Financial Services Commission (FSC). The much-awaited appointment of the top financial regulator came about four weeks after the new administration was inaugurated.

During Tuesday's press conference held at CREFIA headquarters in central Seoul, the appointee stressed that he will seek to overhaul financial regulations and remove outdated rules for the sake of the financial industry's growth.

“As chief of the FSC, I will boldly reform financial regulations so that the financial sector can grow further as a key independent axis of the nation's dynamic economy,” Kim said at the press conference.

The FSC chief nominee added that as the breakthrough of the Korean economy should come from private sector investment and innovative growth, the FSC will pursue a balanced financial support system by existing in harmony with private financial companies. He also vowed to provide policy support for the fintech industry, while renovating the country's regulatory framework to facilitate the digital transformation of the local financial industry.

He also said the country's blockchain industry, including the burgeoning cryptocurrency market, needs experts from various sectors to participate in the policy-making process.

“It's still hard to make any comments about the cryptocurrency market, as market views about it are so polarized right now. But I do think blockchain technology needs to be nurtured continuously, while cryptocurrency market participants are required to take more responsibility in the development phase,” Kim said.

Financial Services Commission Chairman nominee Kim Joo-hyun speaks during a press conference at the Credit Finance Association of Korea (CREFIA) headquarters in central Seoul, Tuesday. Yonhap

Regarding the country's serious level of household debt, Kim said he agrees on the need to regulate loans based on the debt service ratio (DSR), which is the ratio of debt payments to disposable household income.

“I do believe it is necessary to take regulatory measures on household debt, such as DSR-based limitations, although policy fine-tuning would be needed in the process,” the appointee said.

Kim also said the FSC will cooperate closely with both public and private financial institutions to address the complex geopolitical and global macroeconomic crises happening now.

“Responding to the current complex set of external crises, the FSC will make joint, concerted efforts with other related financial institutions, such as the finance ministry, Bank of Korea, the Financial Supervisory Service (FSS) and top experts in the private sector, in a preemptive manner,” the nominee said.

While vowing to pursue innovative deregulation of the financial industry, he also stressed the need to take a balanced approach, providing ample support for small and medium-sized business owners who would face more challenges due to inflation and interest hikes.

Kim has been the chief of CREFIA since mid-2019. Graduating from Seoul National University and earning an MBA from Washington University in St. Louis, Missouri, the nominee has a decades-long financial career, ranging from the public financial sector to private institutions.

Since passing the country's civil service examination in 1981, Kim has worked for the finance ministry, FSC, Securities and Futures Commission (SFC) and the Asian Development Bank (ADB). He was also chairman of the Korea Deposit Insurance Corporation for three years from 2012. As Kim passed the civil service exam in the same year as Choo Kyung-ho, the Yoon administration's finance minister, the two are expected to demonstrate a solid partnership in financial policies.