Chairperson Kim Byeong-hwan noted on the 24th that "it is time for banks to lower their loan interest rates."
On that day, Kim said this during a regular press briefing held at the Government Seoul Complex in Jongno-gu, Seoul. Kim noted, "If we talk about interest rates in this year's context, it is important that the benchmark interest rate reduction is reflected in the market," adding, "There will be a time lag until the benchmark interest rate reduction is reflected in the market, so now is the time to reflect it."
He emphasized, "Since loan interest rates are a type of price, it is not appropriate for financial authorities to intervene directly," while also stating, "Market principles must operate. In that sense, the Financial Supervisory Service will check whether interest rates are being reflected according to market principles."
On that day, Kim also explained the reasons for the easing policy on household loans in non-metropolitan areas. Previously, the government decided to provide incentives for managing household loans if financial institutions expand their provision of local mortgage loans.
Kim explained, "The accumulation of unsold real estate in provincial areas occurs because demand does not keep up with high sale prices," adding, "While it cannot be completely resolved through finance alone, there is a need to allocate financial resources to the provinces." However, Kim reaffirmed a firm stance on the demand to ease regulations on the Debt Service Ratio (DSR) in the provinces, stating, "It is not an appropriate measure in terms of policy credibility or effectiveness."