President Lee Jae-myung warned against 'interest play' in the domestic financial sector, while financial authorities convene chairpersons from various sectors to discuss related measures such as increasing investment.
According to financial authorities and the financial sector on the 27th, the Financial Services Commission will hold a meeting on the 28th with chairpersons from the Korea Banking Association, the Korea Life Insurance Association, the General Insurance Association of Korea, the Korea Credit Finance Association, and the Korea Financial Investment Association, chaired by Vice Chairman Kwon Dae-young. This emergency event was reportedly set up after President Lee's remarks to gather opinions from the financial sector, which was not planned in advance.
During a meeting of senior advisors on the 24th, President Lee said to financial institutions, "I hope you will not cling to easy interest play, such as on dwelling secured loans, but pay attention to increasing investment as well." He emphasized, "This way, the pie of the national economy will grow, and financial institutions will also grow and develop soundly."
In response, the Financial Services Commission is expected to convey the message that a transition from the traditional business model reliant on interest margin (the difference between deposit and loan interest rates) to 'productive finance' is necessary. In particular, it is anticipated that the three key areas of investment will be presented as future industries, ventures, and capital markets.
This means that ample funds from the financial sector should flow into areas tied to the country's future, such as artificial intelligence (AI) technology and advanced ventures. The financial sector also faces a greater incentive to increase corporate loans as the supply target has been halved due to the household loan regulations of June 27.