Kim Byeong-hwan, the Chairperson of the Financial Services Commission, stated on the 30th regarding the significant household loan regulations that limit the maximum amount of mortgage loans to 600 million won, "If we notify people in advance about the measures, we will see an overwhelming demand," adding, "This is not a situation where we can afford to give time."
During the full meeting of the National Policy Committee that day, Chairperson Yoon Han-hong noted, "Loan regulations with significant side effects should have been announced in advance to allow the people to prepare," to which Kim responded. Kim emphasized, "If we announce the measures beforehand, loan demand surges massively," adding, "The situation in the housing market or household debt was not one where we could afford to give time."
That day, Kim also shared his position on the hot-button issue of bad banks. There were ongoing concerns among members of the People Power Party regarding the moral hazard associated with the establishment of bad banks. In response, Kim remarked, "When creating a debt adjustment program, this is always a concern for us," stating, "The principle is to have people repay their debts if they demonstrate repayment ability by assessing their income and assets. Only those who are truly unable to repay their debts will be able to have their debts extinguished."
He further explained, "The extinguishing of debts may be misunderstood as an exemption from all debts," adding, "I will review all income and assets, and if possible, I will also assess debts related to gambling."