Financial Supervisory Service Governor Lee Chan-jin said about the FSS transfer to a non-capital region, "In reality, the field is concentrated in Seoul and the greater capital area, and it would look odd if the people doing the supervision left." He effectively expressed a negative stance on the transfer. The Financial Supervisory Service has recently been the subject of speculation about a move to Wonju, Gangwon Province.
Lee said this at a press briefing held at the Financial Supervisory Service headquarters on the morning of the 26th. Lee said, "The tasks delegated to the financial supervisory body are the management and supervision of financial companies and the capital market, and if not for this role, there is no reason for it to exist. Financial-related sites are concentrated in the capital area." He added, "At present, the transfer has not been formalized, and we will be able to speak after seeing how things develop."
On the task force (TF) for advancing the governance of financial holding companies, Lee said, "Discussions have largely wrapped up." The TF was established late last year to enhance the fairness and transparency of financial company governance. He said, "Items that require additional review are being examined at the government level," and "We are reviewing whether improvements related to best practices at financial holding companies can be reflected in legislation, and a conclusion is expected next month."
Lee said, "There is criticism that, because the announcement of the improvement plan has been delayed, it will not be reflected in the regular shareholders meeting agendas of financial holding companies, but since this is about overhauling the broad framework of financial company governance, I believe corporations will implement it in advance." Lee also said, "The government will soon announce a total household debt target," adding, "It appears management will be at a stricter level than now, and limits are expected to be placed on the size of credit by financial sector. Once the government plan comes out, the Financial Supervisory Service will also take action."
On the government's push to ban extensions of loans to owners of multiple homes, Lee said, "The final touches are being made at the government level." He said, "The Financial Supervisory Service will check for cases of misuse of business loans for non-business purposes, and if found, we will pursue criminal penalties," adding, "We will also prepare regulatory measures to prevent misuse in advance." Business loans are funds borrowed by sole proprietors or corporations to finance corporate operations, but recently there has been an increase in cases of using them to purchase dwellings.
Lee said legislative coordination with relevant agencies has entered the final stage for the special judicial police for people's livelihood financial crimes that the Financial Supervisory Service is working to establish. Lee said, "The Ministry of Justice is preparing amendments to the relevant laws by considering in one go other agencies that are also pursuing the establishment of special judicial police," adding, "Internally at the Financial Supervisory Service, we are determining how many people wish to apply for special judicial police roles, and we are also conducting preliminary training in-house."
Lee said the recent "half-price yen" error at Toss Bank prompted a review across the sector. At Toss Bank, from 7:29 p.m. on the 10th for about seven minutes, an incident occurred in which an exchange rate in the 472-won range per ¥100 was applied to yen exchanges. At the time, the rate was in the 930-won range per ¥100. He said, "We are looking into the incompleteness of internet banks' IT systems and human management controls, and we plan to review other financial companies as well."
On Samsung Pay, which is currently moving to a paid model, Lee expressed concern that "the burden will be passed on to consumers." He said, "From a consumer's perspective, when using Samsung Electronics phones, wouldn't Samsung Pay be considered a basic, default option?" adding, "There is concern about costs being charged to consumers, and we have received views from the industry on this." He added, "However, the move to a paid model by Samsung Electronics is their direct decision, and it is not something for the Financial Supervisory Service to be involved in."