Lee Bok-hyun downplays household loan rise, calls for careful monitoring

Lee Bok-hyun, head of the Financial Supervisory Service, said on the 13th regarding the increase of 4.3 trillion won in household loans in the financial sector last month, "It's not a situation to worry about."

On the same day, Lee spoke with reporters after wrapping up an "open discussion on establishing governance for the coexistence of corporations and shareholders" held at The Federation of Korean Industries in Yeouido, Seoul, noting, "It's not at the level where a red light is on."

Lee noted, "For example, if household loans suddenly increase by more than 6 trillion won in a month, financial authorities may need to respond in an emergency, but 4.3 trillion won is not a scale that raises a red flag," adding that "the trend in March shows a flow close to stagnation."

Lee said, "Considering the current economic recession, issues in non-capital areas, and small business problems, simply reducing loan supply is not a solution." He continued, "We are managing a situation where we can neither touch the ceiling nor the floor," and noted that he would monitor several key indicators, such as the land transaction permit system and the increase trend of mortgage loans for multiple homeowners.

In relation to the opposition raised by ISS, the world's number one voting rights advisory firm, regarding the appointment of inside directors including Ham Young-joo, chairman of Hana Financial Group, as well as Lee Seung-yeol and Kang Sung-mook, Lee stated, "What's important is not the conclusion, but what the arguments for and against are." He added, "We have very tight rules regarding sanctions and criminal penalties, and in that case, opposing is part of the inherent policy of that advisory institution," and mentioned, "How the entrusted institutions respond to the advice provided depends on their own logic and the direction and method of enhancing shareholder value."