Hello, everyone! I’m back with the news about ‘The Policy Symposium’ held on November 6th. This symposium was about the current issues in our financial system, focusing on protection of financial consumers and reorganization of financial supervisory system. The chairman of FSC, Mr. Kim delivered a congratulatory speech at the symposium. Here I am telling you the details of his address.
The issue of protecting financial consumers is not just out-of-sudden matter that sweeps away. Rather, it is a really confronting issue of the current time which needs to be addressed in line with nation’s financial administrative system.
Consumer protection is a part of new paradigm in our economy. These days, many are aware of negative externalities of neo-liberalism, despite the rapid economic growth based on neo-liberal economic framework over the last few decades. Now, it is regarded that we should search for a new paradigm leading to economic stability.
FSC has been putting lots efforts to protect financial consumers. First of all, to stabilize economic system, FSC carried out some policies such as restructuring savings banks and soft landing measure for household debts. To alleviate social polarization, FSC has been trying to provide various micro credit funds, vitalize loans markets for small amounts, and innovate financial environment favorable to SMEs.
Restructuring financial supervisory system requires a wholistic and broad approach, considering that financial administration covers a large scale of administrative works. They are responsible for issues such as building financial infrastructure, establishing allocation system for economic resources, stabilizing financial markets, activating emergency rescue system in cases of crises, and protecting financial consumers.
Developed countries have already reinforced the measures to protect financial consumers. For example, the British Council acknowledged that financial consumer protections would incur some burdens on financial companies, which is a natural progress and not a big problem. The US, in the same vein, enacted the Dodd-Frank Act in 2010. The Act was introduced for the purpose of establishing an independent body responsible for financial consumer protections.
For more advanced financial system, Korea should keep working on protecting financial consumers and building a financial administrative system with a greater capability. This is very closely related to financial industry’s competitiveness in the future. To establish a new paradigm and system which will be proudly passed on to our next generation, lots of efforts are in need. The government, academia, politicians, and other professionals should come together for this ends.