Chairperson Lee Eok-won of the Financial Services Commission again stressed the principle that financial support is possible only on the premise that corporations have made sufficient self-rescue efforts in relation to the restructuring of the petrochemical industry.
After finishing a meeting with the heads of 20 banks at the Korea Federation of Banks in Jung District, Seoul, on the 29th, Chairperson Lee, answering a question about petrochemical restructuring, said, "The most important thing is for corporations to survive again and regain competitiveness," while adding, "The principle remains valid that, on the premise of thorough self-rescue efforts by the largest shareholders, we can participate in due diligence together and provide support."
Financial authorities have emphasized that financial support can proceed only when the petrochemical sector's self-rescue efforts and burden-sharing are in place. Vice Chairperson Kwon Dae-young of the Financial Services Commission, at a meeting on the 21st of 4th held for petrochemical business restructuring, urged, "Show actions based on principles, such as self-rescue efforts that 'cut into one's own bone' and concrete and reasonable business restructuring plans."
Chairperson Lee, regarding capital injections by the largest shareholders, said, "It must be formulated in detail, by corporation, and specifically," adding, "We will consult on a case-by-case basis." Credit financial institutions holding petrochemical corporations' bonds are scheduled to sign a voluntary agreement on the 30th to determine subsequent financial support measures.
Meanwhile, regarding criticism that the banking sector is being saddled with excessive responsibilities such as so-called productive finance, Chairperson Lee said, "It is an incentive structure based on a market-friendly approach; it is not forcing them to go down a path they would not take at all," adding, "It means to do what is possible within their capacity."
Chairperson Lee also expressed expectations for the National Growth Fund. He said, "In the case of regional banks, as the population in their base regions declines and the industrial base deteriorates, regional banks also face contraction," adding, "Of the 150 trillion won in the Private Growth Fund, 60 trillion won will be injected into regional economic revitalization projects, so I think it will be an extremely important framework that can create a new turning point."