The Financial Services Commission said on the 9th that it held the third meeting of the "productive finance council." Nine major financial companies attended the meeting, including Shinhan Financial Group, Hana Financial Group, BNK Financial Group, Mirae Asset Securities, and Hana Securities.
On the day, Vice Chairman Kwon Dae-young of the Financial Services Commission (FSC) noted that market volatility at home and abroad, including oil prices, has grown very large due to the recent situation in the Middle East, and said it is important to do everything possible to stabilize markets. He emphasized the need to move quickly on structural changes to the economic framework, not merely stop at crisis response.
Kwon also said that when pursuing organizational or staffing reshuffles or improvements to key performance indicators (KPI), they should be reviewed from the perspective of whether they provide practical help to frontline employees' decision-making. He said it is particularly necessary to establish a system in which the judgments of organizations or specialists that analyze industrial competitiveness can be reflected in actual decision-making.
He went on to ask each financial company to review bold indemnification or measures to remove personnel disadvantages for losses that may arise from productive finance investments, and to make specific proposals if government-level indemnification is needed. The Financial Services Commission (FSC) recently prepared a plan to apply indemnification to financial institutions participating in the Public Growth Fund. The main point is to apply indemnification—excluding willful misconduct or gross negligence—to equity investment and loan operations of financial institutions participating in the Public Growth Fund.
Kwon also emphasized that comprehensive support for regional investment should be carried out. He stressed that simply expanding loans to increase the supply of funds has limits for long-term growth. He said it is necessary to expand support opportunities—such as by broadening linkages among venture incubation facilities across financial institutions—and to establish concrete financial support strategies that fit local flagship industries and the "five hubs, three specialties strategy."