Financial Services Commission Chair Lee Eog-weon and Financial Supervisory Service Governor Lee Chan-jin met for the first time and agreed to prepare details for the first overhaul of the financial supervisory framework in 18 years.
At their first meeting that day in the Financial Services Commission chair's office at the Government Complex Seoul, the two chiefs agreed to improve systems and supervisory practices so that funds in the financial sector can shift from unproductive areas such as real estate and collateral-backed loans to productive finance, including advanced industries, venture and innovative companies, and regional economies.
The two chiefs also agreed to support the entrenchment of consumer-centered finance by expanding inclusive finance for vulnerable groups, including debt adjustment and the provision of finance for low-income people, and by preventing harm from misselling. They further agreed to closely manage risk factors through household debt management, a soft landing for real estate project financing (PF), and managing arrears rates in the secondary financial sector.
In particular, regarding the overhaul of the financial supervisory framework, they agreed to pursue the revamp reflecting the social demand to strengthen financial consumer protection and the accountability of supervisory bodies. They accepted the government's plan to reorganize agencies. Earlier, the government and the ruling party announced a reorganization plan to transfer the Financial Services Commission's financial policy function to the Ministry of Finance and Economy and to reshape the remaining organization into the Financial Supervisory Commission.
The two chiefs will institutionalize a "two-person weekly meeting" between the Financial Services Commission chair and the FSS governor and, beyond rank, activate regular meetings down to working-level units to share information.