Koo Yun-cheol, Deputy Prime Minister for Economic Affairs and Minister of the Ministry of Economy and Finance, said on the 19th, "Global competition is extremely fierce, and in this grave life-or-death situation, separation of banking and commerce, or a complete abolition of separation of banking and commerce, is not necessarily a good in itself," adding, "We will narrow the scope to fit our circumstances and actively discuss with the relevant ministries so we can block expected side effects."
Deputy Prime Minister Koo said this at a press briefing held at the Sejong Government Complex in response to a question asking, "What do you think about SK Group Chairman Chey Tae-won's request to ease separation of banking and commerce and to relax regulations on the equity holdings of a holding company's grandchild subsidiaries?"
Chairman Chey Tae-won, at a policy meeting with the People Power Party on the same day, requested easing of separation of banking and commerce, saying, "When global corporations invest sums measured in trillions of dollars, they are no longer raising funds on their own; corporations are forming funds and raising outside capital to invest, and everything is shifting that way."
Separation of banking and commerce prevents industrial capital, such as large conglomerates, from managing financial companies like banks or asset managers. The intent was to keep large conglomerate groups from using financial companies as private coffers. Recently, however, it has been criticized as a regulation that blocks collaboration between industry and finance, causing Korea to fall behind in global competition. Earlier, President Lee Jae-myung also signaled on the 1st that some deregulation, including separation of banking and commerce, could be considered for the AI sector only.
Deputy Prime Minister Koo said, "This does not mean we will ease separation of banking and commerce," adding, "If necessary in any area, we will consult among ministries and keep the possibility open."
Deputy Prime Minister Koo also mentioned next year's economic growth target. He said, "We will make next year the first year of a rebound in the potential growth rate, push a variety of policies, and actively engage in communication with the public and the business community."
He went on to say, "Starting in Jan., I plan to meet major corporations once a month to communicate," adding, "We will cooperate on workforce and research and development (R&D), among other areas, and also ease regulations so corporations face no obstacles in investing domestically."