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

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.