The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to President
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to President
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
  • Login
  • Register
  • Login
  • Register
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
  • 1

    Garbage collector mistakes sex doll for corpse

  • 3

    Free subway rides for elderly emerge as headache for Seoul mayor

  • 5

    Samsung unveils new Galaxy S23 smartphone

  • 7

    Retailers return to Myeong-dong as more foreign tourists visit

  • 9

    Japanese comic series 'Slam Dunk' enjoys resurgence on back of animated film

  • 11

    INTERVIEWA touch of authenticity in Korea's Mexican cuisine scene

  • 13

    Pyongyang threatens eye-for-eye response as US B-1B bombers join drills in South Korea

  • 15

    President pledges support for Korean chipmakers to overcome crisis

  • 17

    Income gap widening among workers

  • 19

    China imposes mandatory virus tests for arrivals from Korea only in latest protest over curbs

  • 2

    Major webtoon platforms' fight against piracy

  • 4

    Seoul city council under fire for sexual conduct guidelines for teachers

  • 6

    Korea seeks measures to better protect foreign workers

  • 8

    ENHYPEN-inspired webtoon 'Dark Moon: The Blood Altar' surpasses 100 million views

  • 10

    Is non-consensual sex not rape?

  • 12

    4 South Korean activists arrested for executing orders from Pyongyang

  • 14

    Police to introduce new measures to better handle intoxicated people

  • 16

    $120,000 banana, praying Hitler: Infamous art world prankster Maurizio Cattelan's first Seoul outing

  • 18

    Korea's presidential couple celebrates recovery of Cambodian boy who received heart surgery

  • 20

    Retired actress Shim Eun-ha denies rumor of return

Close scrollclosebutton

Close for 24 hours

Open
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
Fri, February 3, 2023 | 21:53
Economy
Yoon's market-driven policy backpedals
Posted : 2023-01-14 09:07
Updated : 2023-01-15 11:02
Yi Whan-woo
Print PreviewPrint Preview
Font Size UpFont Size Up
Font Size DownFont Size Down
  • facebook
  • twitter
  • kakaolink
  • whatsapp
  • reddit
  • mailto
  • link
                                                                                                 Financial Services Commission (FSC) Chairman Kim Joo-hyun delivers an address during a New Year's meeting with financial industry leaders at Lotte Hotel in downtown Seoul, Jan. 3. Yonhap
Financial Services Commission (FSC) Chairman Kim Joo-hyun delivers an address during a New Year's meeting with financial industry leaders at Lotte Hotel in downtown Seoul, Jan. 3. Yonhap

Authorities under fire for exerting influence on financial firms

By Yi Whan-woo

The government is bolstering efforts to lift regulations in the finance industry to achieve President Yoon Suk Yeol's vision of a market-driven economy.

But at the same time, financial regulators are apparently ratcheting up efforts to bolster their influence on the management of banking groups, fueling skepticism over the government's commitment to serve the interests of financial firms.

Concerns are rising over double standards in the Yoon administration's market-driven economic vision as financial authorities have been increasingly targeting bank CEOs at a time when their tenures are close to ending.

Among the latest targets was Woori Financial Group Chairman and CEO Son Tae-seung, who was criticized by Financial Services Commission (FSC) Chairman Kim Joo-hyun for "not accepting the FSC's punishment against him concerning sales of risky Lime Asset Management funds by Woori Bank in 2019."

Son had been doubling as the head of Woori Bank and Woori Financial Group back then. The FSC reprimanded Son in November 2022.

The warning is raising suspicions for being issued after Son won a lawsuit against the FSS twice _ at a lower court in August 2021 and at the High Court in July this year _ over a separate case of Woori Bank's mis-selling of high-risk, derivative-linked funds (DLFs), also in 2019.

Financial sources speculate that the Yoon administration is trying to find an excuse to block Son from seeking a third term as CEO when his second three-year tenure ends in March 2023.

The sources noted that the FSC warning bars Son from holding positions at financial companies for three years, although his current term can be completed.

Speculation has become rampant that the Yoon administration wants to replace banking group chiefs, whose current terms were soon to expire mostly in December last year, with pro-government figures.

Against this backdrop, Son has been seeking to take the case to the court as he did in the past.

"And I find Chairman Son's move to counter (the FSS waring) with a lawsuit to be inappropriate," the FSC chairman said on Jan. 6. "I am extremely uncomfortable with Son and his company talking about possible lawsuits in the absence of any discussions on how the company can make an improvement (in relation to the sales of Lime Asset Management funds)."

The government's pressure on Son came as the CEOs of other banking groups, such as Cho Yong-byoung of Shinhan Financial Group and BNK Financial Group Chairman and CEO Kim Jin-wan, dropped out leadership races.

They were widely anticipated to easily secure another term.

"The government's move certainly contradicts Yoon's market-driven economy, as it can prompt financial firms to read the government's intentions when it comes to leadership," a member of the Citizens' Coalition for Economic Justice, a Seoul-based civic activist group, said on condition of anonymity.

"The government's move is also ambiguous considering it looked as if it is fully poised to back the banking industry and real estate market through deregulations," he added.

The civic activist was referring to the FSC chairman's announcement in July 2022 when he highlighted the need to revamp rules that restrict non-financial businesses from owning banks.

Korea restricts industrial capital from being used to purchase stakes in banks and financial institutions in a bid to make it hard for business owners to use them as their private ATMs. Under the rule, businesses can only own up to a 4 percent stake in a bank.

The country's top financial regulator then stressed that the so-called separation of industrial and financial capital constitutes major red tape that hampers financial firms from going digital.

The chairman also emphasized that the government will make efforts to ease regulations to allow local financial companies to do anything their foreign competitors can.

He viewed that all regulations and practices thus should be under review for changes.

                                                                                                 Financial Services Commission (FSC) Chairman Kim Joo-hyun delivers an address during a New Year's meeting with financial industry leaders at Lotte Hotel in downtown Seoul, Jan. 3. Yonhap
Minister of Land, Infrastructure and Transport Won Hee-ryong, right, speaks with Prime Minister Han Duck-soo before his ministry's New Year briefing at the state guest house of Cheong Wa Dae, the former presidential office, in central Seoul, Jan. 3. The ministry announced it will lift property-related regulations in most of Seoul and metropolitan areas beginning on Jan. 5 as an extended measure to revitalize the housing market. Yonhap

Regarding the housing market, the government lifted property-related regulations in most of Seoul and the surrounding metropolitan areas beginning on Jan. 5.

The measure was extended from the previous overhaul of regulations in the housing market that saw a surge in prices, but recently has been cooling down fast due to strict regulations and higher borrowing rates.

All of Seoul and its adjacent metropolitan areas are no longer subject to restrictions except for four districts _ Gangnam, Seocho and Songpa in southern Seoul and Yongsan in central Seoul.

The government also lifted the "apartment presale price cap system," which was regarded as one of the strongest measures taken by the government to clamp down on housing prices.

The system was implemented in 2019 for apartments to be built by private builders amid signs of escalating home prices.
Emailyistory@koreatimes.co.kr Article ListMore articles by this reporter
 
Top 10 Stories
1Seoul city council under fire for sexual conduct guidelines for teachers Seoul city council under fire for sexual conduct guidelines for teachers
2Samsung unveils new Galaxy S23 smartphone Samsung unveils new Galaxy S23 smartphone
3[INTERVIEW] A touch of authenticity in Korea's Mexican cuisine scene INTERVIEWA touch of authenticity in Korea's Mexican cuisine scene
4Pyongyang threatens eye-for-eye response as US B-1B bombers join drills in South Korea Pyongyang threatens eye-for-eye response as US B-1B bombers join drills in South Korea
5Police to introduce new measures to better handle intoxicated people Police to introduce new measures to better handle intoxicated people
6Gov't announces measures to cope with shortage of surgeons Gov't announces measures to cope with shortage of surgeons
7[INTERVIEW] 'Extended deterrence is best option to ensure peace on Korean Peninsula' INTERVIEW'Extended deterrence is best option to ensure peace on Korean Peninsula'
8Teens feel peer pressure to buy luxury goods endorsed by K-pop stars Teens feel peer pressure to buy luxury goods endorsed by K-pop stars
9[INTERVIEW] US-NK summit is unlikely in 2023: Korea Society INTERVIEWUS-NK summit is unlikely in 2023: Korea Society
10[INTERVIEW] IMF expects no recession for Korean economy INTERVIEWIMF expects no recession for Korean economy
Top 5 Entertainment News
1Major webtoon platforms' fight against piracy Major webtoon platforms' fight against piracy
2ENHYPEN-inspired webtoon 'Dark Moon: The Blood Altar' surpasses 100 million views ENHYPEN-inspired webtoon 'Dark Moon: The Blood Altar' surpasses 100 million views
3$120,000 banana, praying Hitler: Infamous art world prankster Maurizio Cattelan's first Seoul outing $120,000 banana, praying Hitler: Infamous art world prankster Maurizio Cattelan's first Seoul outing
4PULL UP: VIVIZ returns with new song about gossipers PULL UP: VIVIZ returns with new song about gossipers
5Park Hyung-sik to play crown prince in tvN series 'Our Blooming Youth' Park Hyung-sik to play crown prince in tvN series 'Our Blooming Youth'
DARKROOM
  • Nepal plane crash

    Nepal plane crash

  • Brazil capital uprising

    Brazil capital uprising

  • Happy New Year 2023

    Happy New Year 2023

  • World Cup 2022 Final - Argentina vs France

    World Cup 2022 Final - Argentina vs France

  • World Cup 2022 France vs Morocco

    World Cup 2022 France vs Morocco

CEO & Publisher : Oh Young-jin
Digital News Email : webmaster@koreatimes.co.kr
Tel : 02-724-2114
Online newspaper registration No : 서울,아52844
Date of registration : 2020.02.05
Masthead : The Korea Times
Copyright © koreatimes.co.kr. All rights reserved.
  • About Us
  • Introduction
  • History
  • Contact Us
  • Products & Services
  • Subscribe
  • E-paper
  • RSS Service
  • Content Sales
  • Site Map
  • Policy
  • Code of Ethics
  • Ombudsman
  • Privacy Statement
  • Terms of Service
  • Copyright Policy
  • Family Site
  • Hankook Ilbo
  • Dongwha Group