Fiscal chief signals drastic deregulations in financial sector

The nation’s fiscal chief has expressed his willingness to enact drastic deregulations and introduce innovations into the financial services sector during the Yoon Suk-yeol administration.

Deputy Prime Minister and Finance Minister Choo Kyung-ho said Friday that the government “would eliminate unnecessary and excessive regulations in the financial sector drastically, with the exception of (regulations) for financial soundness and protection of (financial) consumers.”

Choo’s remarks came during his meeting with chiefs from the five major financial groups — Hana, KB, NH, Shinhan and Woori — and Financial Services Commission Vice Chairman Kim So-young at the Korea Federation of Banks in Seoul.

“In the past, the industrial role of the financial sector had excessively contracted due to the awareness that financial services firms are the target of regulations, (mostly) aimed at soundness and consumer protection,” he said.

He said the Yoon government would not spare any effort to help finance stretch itself as an industry, pledging to offer active support toward the goal.

The minister also commented on the necessity of raising competitiveness amid the digitalized era.

The financial sector should create high-quality jobs via innovation, including conversion into digital-based services and risk management, beyond a variety of regulations, he said.

He also called for the financial firms to take an active role of supporting the macro-economy, saying that “(the economy) has faced expanded global uncertainty and market volatility.”

In addition, financial firms should take the initiative in supporting other industries in a progressive manner and bring about innovation across the economy, he said.

Later in the day, Choo told reporters that the monthly consumer prices growth would hover over 5 percent for a while this year, suggesting that the nation’s inflationary pressure is in a serious status.

Choo took office as the first deputy prime minister and finance minister of the Yoon administration on May 11, a day after President Yoon‘s inauguration.

By Kim Yon-se (kys@heraldcorp.com)