Meeting with Financial Holding Companies #1

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Hello folks. As I posted on Tuesday, Mr.Kim Seok-Dong, the Chairman of FSC, met the representatives of the major financial holding companies. Since the blog post on Tuesday(https://financialservicescommission.wordpress.com/2012/08/21/fsc-chairmans-meeting-with-financial-holding-companies/) was just a brief sketch of the meeting, the details were not outlined. So, today and tomorrow, I am going to introduce you the measures and responses discussed by Mr.Kim and the representatives.

First, Mr.Kim put an emphasis on the stability of financial system. Since the global financial turmoil is still on its way, financial uncertainty is looming worldwide. In response to the current situation, our financial system should be equipped with proper policy measures and responses. As well as stability, financial holding companies need to focus on maintaining their ‘soundness’ of operation in order to deal with external shocks in the global economy.

Second, financial support for exportation and investment should be further expanded. This is because these two sectors are the ones that support Korean economy to a great extent. To keep our growth engine working while minimizing external shocks, financial sectors are to play an important role to support these sectors.

Third, as having done so, financial authorities will continue to work on easing the financial difficulties faced by the low-income households and SMEs. Each financial company is to design its own programs and products to support the financially excluded individuals such as small merchants, youth, and university students. It is said that financial companies’ contributions to society should be further enhanced. Competitive SMEs should not find difficulties in financial liquidities, being properly supported by financial assistance.

These three agendas are nothing new, since there have been various policy measures responding to these issues. However, Mr. Kim emphasized the importance of these issues once again, urging the financial holding companies to serve their roles properly. That is, to cooperate with financial authorities in a way which boosts our economy, promotes soundness, and therefore makes a better economic situation for both industries and households. The other three agendas will be up tomorrow 🙂

Cheers,
Frank

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