South Korea to analyze banking and other economic sectors
2023.02.22 02:52
South Korea to analyze banking and other economic sectors
By Kristina Sobol
Budrigannews.com – Days after the country’s president urged lenders to assist in reducing the burden of the rising cost of living on the country’s most vulnerable citizens, South Korea established a task force on Wednesday to investigate ways to enhance bank business practices and pay schemes.
The Financial Services Commission (FSC) released a statement stating that the panel, which includes regulators, scholars, researchers, and representatives from financial industry associations, is led by the deputy chief of the top financial regulator.
Kim So-youthful, bad habit administrator of the FSC, said at the board’s debut meeting that it would concentrate on ways of supporting contest either between existing banks or by permitting passages of specialty specialist organizations.
He also said that the panel would look into ways to help banks improve their pay structure and diversify their business practices, which are currently heavily dependent on interest rate margins.
Additionally, it would talk about possible ways to increase capital buffers against external shocks.
At a separate meeting with foreign investors, Financial Supervisory Service Governor Lee Bok-hyun stated, “By doing so, we believe that Korea’s banking industry will be able to get more competitive and efficient, which will make the Korean financial markets more attractive to investors.”
Lee added that financial institutions’ decisions regarding shareholder returns like dividends will be respected by the government.
According to President Yoon Suk-yeol and other government officials, reports of significant bank performance-sharing and early-retirement bonus payments have increased public discontent.
This month, the Korea Exchange Bank Equity Index has lost more than 7%, with the majority of losses occurring following Yoon’s remarks last week. The overall index is down 0.3 percent.
According to a report published on Tuesday by the Yonhap news agency in South Korea, major banks have been lowering lending rates in response to Yoon’s remarks.
