Gyeong-gi & Incheon Microfinance Service Center was launched on November 10, Monday. The center is the first of its kind to be opened in Korea after the announcement of the government’s plan to establish provincial microfinance network to provide better financial service to the consumers.
Unlike the current microfinance call centers, Microfinance Service Center provides one-stop services from financial advices to credit assessment and apply for loans on a single visit. Employees from Smile Microcredit Bank, Crecie Counselling & Recoversy Service, Korea Asset Management Corporation and Korea Investment Savings Bank will be dispatched to the center to provide more efficient services.
FSC Vice Chairman Jeong Chan-woo during the opening ceremony mentioned that the establishment of Microfinance Service Center laid a foundation for the improvement of livelihood of the ordinary people in Gyeong-gi province and Incheon area. At the same time, mayor Kim Man-soo of Bucheon city promised unsparing support for further development of the center.
Committee for Financial Innovation met for its second meeting on Tuesday, October 21 to check the current performances to achieve the Park Geun-hye administration’s ‘Three-year Economic Plan’ and ‘Creative Finance.’
Centered by FSC Vice Chairman, Jeon Chan-woo, the committee evaluated that the FSC has been successfully laying out foundation to reach the government’s goal. In particular, TCBs gave out 3,200 technology loans, reflecting that the government’s technology finance has already taken deep root in the financial sector.
Growth Ladder Fund provided necessary fund worth 310 billion won to start-up and venture companies. Moreover, the government provided assistance to 63 small-sized firms to be listed in the KONEX market to raise fund.
Aside from such milestone achievements, there also have been noticeable results by the government to improve bank governance structure, abolish banks’ out-dated financial practices, and streamline inspection and sanction scheme.
The committee will meet again on October 29 to further develop the proposals raised during the second meeting.
FSC Vice Chairman Jeong Chan-woo delivered a congratulatory speech at “Open Seminar on the Measures to Stimulate Savings Banks’ Relationship Banking”, on March 20, Thursday.
Vice Chairman Jeong emphasized that the savings banks should invest more actively in training ‘Relationship Managers’ specialized in inter-bank relationship banking. Some of the participants raised opinions calling that the government should reduce the its guarantee on large banks’ low-interest loans to develop relationship banking.
He mentioned that the FSC will ease unreasonable regulations that hamper facilitation of savings banks’ relationship banking.
* Relationship banking: A strategy used by banks to enhance their profitability. They accomplish this by cross-selling financial products and services to strengthen their relationships with customers and increase customer loyalty. Relationship banking involves offering customers a broad array of financial products and services including certificates of deposit, safe deposit boxes, insurance, investments, credit cards, loans and business services that go beyond simple checking and savings accounts. (Investopedia)
The prosecutors arrested the suspects of the recent private information leakage incident and concluded that there will be no further external information leakage of the three card companies’ customers. The government recognized the urgency to devise fundamental and detailed measures to respond to and prevent the accident.
Based on such recognition, the FSC formed a task force dedicated to preparing plans to strengthen financial consumer information protection. The task force is comprised of experts from the Ministry of Security and Public Administration, Korea Communications Commission, Financial Supervisory Service and other responsible agencies.
FSC Vice Chairman Jeong Chan-woo urged the participants to discuss fundamental measures to prevent such accidents from happening again by thoroughly analysing the cause. Moreover, he asked to review matters related to financial institutions’ internal control and responsibility of the CEOs. In particular Vice Chairman Jeong emphasized the Financial Supervisory Service’s role in preemptively responding to prevent further damages.
Vice Chairman of the FSC, Jeong Chan-woo briefed the press on the measures to prevent cases like Tong Yang incident. Before the briefing, he made an apology to the victims of the incident that the financial authorities failed to prevent such incident from happening and put the innocent financial consumers in harms way. He said that the market-controlling instruments such as financial rules, supervision, and market principles didn’t function effectively.
Vice Chairman Jeong committed that the authorities will exert utmost efforts to keep the incident under control as soon as possible and minimize damage of the victims. At the same time he emphasized that the government will never tolerate unethical practices such as fraudulently selling financial products to naive consumers.
Vice Chairman Jeong Chan-woo, on Thursday, paid a visit to a traditional market to listen to merchants’ financial hardships and deliver words of encouragement. Vice Chairman Jeong had a tour around Eunpyeong Dae-jo traditional market and had a deep conversation with local merchants in a bid to get various ideas for devising more practical and helpful policies on micro finance. He also bought some Chuseok (Korean Thanksgiving day) gifts hoping the government could deliver more help and support to the traditional market merchants.
Vice Chairman Jeong Chan-woo delivered a keynote speech at the 9th Asia-Pacific New Markets Forum on July 1, 2013. Vice Chairman Jeong said the government launched the KONEX to help innovative companies and eventually realize the new administration’s vision, Creative Economy. He went on by illustrating the idea of KONEX, its benefits, and the way forward. In particular, he emphasized that the KONEX will serve as an opportunity for SMEs to receive financing and improve brand awareness as well as for investors to invest in “high risk, high return” securities which are not traded in the main board market.
Click the link below to read the keynote address in full text.