Lee Bok-hyun, the head of the Financial Supervisory Service, emphasized the importance of soundness monitoring while mentioning the expansion of fund loans in the banking sector during an executive meeting on the 14th.
Lee noted, "The bank's own policy loan (stepping stone and support loan) has increased by 180.8% since 2022, showing a concentration phenomenon in household loans," and pointed out that "considering the bank's opportunity cost, this could adversely affect revenue." He continued, "It is necessary to be mindful of asset concentration risk and deterioration of soundness."
Lee urged attention to the stability of the financial market ahead of the inauguration of Donald Trump, the U.S. president-elect. Lee said, "After the release of the U.S. employment figures last week, which significantly exceeded expectations, expectations for an interest rate cut have rapidly diminished, potentially leading to increased volatility due to exchange rate and market interest rate instability. As there are important events, such as Trump's inauguration, that may impact the market, we must remain particularly vigilant and ensure financial stability."
In addition, Lee stated, "There are insufficient measures to protect minority shareholders during the recent significant rise in public offers aimed at delisting, primarily centered around private equity funds," and added, "Appropriate responses are necessary."