President Lee Jae-myung on the 14th said regarding the minimum-credit borrowers' lending rates in the financial sector that "poor people are bearing all the financial sector's losses among themselves," noting that a fundamental shift in thinking based on the "principle of community" is needed. Among the bottom 10% by credit rating who pay annual lending rates of 15% or more, 90% faithfully complete repayment despite the high interest, he said, adding that they are even shouldering the burden of the remaining 10% who lack repayment capacity.
On this afternoon at the Dongdaemun Content Culture Plaza in Seoul, during a policy town hall titled "Digital talk live: the people's voice becomes policy," Lee said, "The financial sector classifies the 'group with a high probability of not repaying' by credit rating and makes them pay much more interest," adding, "Of course, it is the logic of the market and capitalism, but they split the (low-credit group) into segments so minutely that it is almost cruel. Finance is too cruel."
Lee said, "With the current structure, once you fall into a pit, you can never recover," and again brought up the "0.1 percentage point rate increase for top-tier customers" he proposed at the Cabinet meeting on 9th last month. At the time, Lee said, "We lend to top-tier customers at ultra-low rates, but couldn't we add even just 0.1 percentage point to let those who have difficulty accessing financial institutions borrow at a bit cheaper than 15.9%?"
He also smiled, saying, "After I said this, I was heavily bombarded and called a socialist, a commie." Lee said, "Isn't that part of the principle of community? Even in the bottom 10% by credit rating, more than 90% repay," adding, "What fault is it of those who repaid? Why should only poor people shoulder what the 10% who don't repay owe? Can't people with higher credit ratings bear even a bit of it?"
He continued, "We are members of the Korea community," adding, "The current system is too harsh. Couldn't we share even part of the burden together? If I say this kind of thing, I'm bound to be called a socialist commie again." He specifically asked Policy Deputy Minister Kim Yong-beom and Financial Services Commission Chairman Lee Eo-gweon for improvements to the interest rate system for the lowest-credit borrowers.
Kim, a former vice chairman of the Financial Services Commission, said that the 7–8% to 15% range for lending rates is "punched out like a donut," adding, "I have been in charge of financial policy all my life, but this is an area that makes me feel great shame." He said, "For preferred customers, in addition to low rates, points and other de facto benefits are provided, so it looks like the system is efficiently organized, but in fact it is not. Many parts are left inefficiently," adding, "Polarization is clearly appearing." He also said, "From 15% lending rates and up, finance is being run in a very ruthless, extreme form of jungle capitalism."