The Financial Services Commission (FSC) was established in March, 2008 for the purpose of protecting the integration of Korea’s financial markets by promoting sound credit system and fair business practices. The establishment was in the aftermath of 2008 Global Financial Crisis (GFC), and since then it has been striving to meet its initial goal as an integrated financial policy making and supervisory authority.
Various policy tools have been introduced, including advancing the financial industry, stabilizing financial markets, establishing a reliable credit system, promoting equitable transaction, and providing protection to consumers. “The fundamental principles are transparency and fairness in order for the policy implementation to attain its intended outcome”, said the Chairman of Commission, Mr. Seok-Dong Kim, on Friday May 11th, during his round-table lunch with the Commission’s student delegate reporters.
During his talk, Mr. Kim emphasized that the Commission is working towards the deregulation of financial market which will benefit not only financial institutions but also individuals. By that means, Mr. Kim mentioned that deregulation needs to be executed ‘at two-tiers’. The first tier is the deregulation between government and financial institutions, allowing financial institutions to run businesses with lesser barriers in the market. The other tier of deregulation is the one between financial institutions and individuals, which is to give individuals more availability of options for financial products and services. Along with the deregulatory regime, Mr. Kim highlighted the importance of micro-credit for low-income earners. By referring to the successful example of micro-credit in Bangladesh, Mr. Kim expressed his concern that granting credit should not be aimed at generating short-term profits. Mr. Kim said, “Micro-credit should be given with due consideration so as to promote sustainable development of the recipient in a way which it enables an individual to build his cornerstone for economic activity on the basis of micro-credit.” These policies ultimately seek to enhance financial stability in Korea as well as promote more favorable condition for financial transactions.
Consistent with its initiative, the Commission has made efforts to create a modern and reliable financial market that is globally competitive. The Commission continues to serve its role of formulating, establishing and enforcing financial policies and regulations to pursue further improvements in Korea’s financial market. Considering the high interdependence between Korea and international economy as a whole, the pursuit of improvement in Korea’s financial market is to contribute to the stability of global economy.
Su Jee An (firstname.lastname@example.org)