As the financial authorities pass the halfway point of the Yoon Seok-yeol administration’s term, financial sector achievements include the shift to online lending and the approval of additional commercial banks for the first time in 32 years. He also praised the fact that he implemented bold market stabilization measures despite difficult economic and financial conditions as an achievement.
In the capital market field, he praised himself for the meaningful actions such as the abolition of financial investment income tax and the simplification of actual loss insurance claims in insurance.
To mark the turning point of the Yoon Seok-yeol government‘s term, the Financial Services Commission announced the ‘Yoon Seok-yeol Government Financial Sector Achievements and Future Plans’ on the 10th.
In a situation where economic and financial conditions are difficult, such as a contraction of the real economy, rising prices, and interest rate hikes in major countries, the Financial Services Commission has implemented market stabilization measures worth ‘KRW 50 trillion+α’ and interest refunds for small business owners (KRW 1.8 trillion) through public-private cooperation to support people’s livelihoods. He praised himself for stabilizing the financial market at an early stage and reducing the financial burden on the people through financial promotion.
In particular, it was significant that the interest burden was greatly reduced through continuous system improvements, such as introducing the world’s first ‘one-stop loan transfer service’ and expanding the service target from credit loans to mortgage loans and leasehold loans. As of the end of October, approximately 290,000 people had transferred loans worth 16 trillion won to an average interest rate of 1.53% points, resulting in interest savings of 1.76 million won per person per year.
As a measure to support the vulnerable and revitalize the people’s economy, the debt adjustment of 55,000 people has been supported to date through the introduction of a 30 trillion won new start fund. Among delinquent borrowers, those who repaid their debt in good faith had their credit information deleted, allowing 2.9 million people to engage in normal financial transactions.
The Youth Leap Account, which was President Yoon Seok-yeol’s pledge, was also launched. Initially, it was criticized as a response that did not meet the promise, but currently 1.55 million people have signed up and 90% of subscribers are maintaining their payments.
The Financial Services Commission also cited the Democratic Party of Korea’s recent agreement to abolish the financial investment income tax as an achievement. In addition, the Financial Services Commission is promoting the expansion of tax-exempt limits and payment limits for ISA, an all-purpose account for asset formation, and the establishment of a new domestic investment ISA.
The emergence of a new commercial bank for the first time in 32 years through Daegu Bank’s conversion to a commercial bank was evaluated as a bold measure to promote competition and innovation in the financial industry. In addition, it is explained that the improvement of network separation regulations in the financial sector, which had restricted financial innovation due to excessive regulations for 10 years, has laid the foundation for the use of generative AI (artificial intelligence) technology in the financial sector.
In addition, the computerized service for actual cost insurance claims began last month. Currently, 4,377 medical institutions have confirmed participation, and the number of subscribers to the Silloss 24 app has reached 430,000. The Financial Services Commission expects that people will be able to easily file insurance claims without visiting a counter or complicated documents.
An official from the Financial Services Commission said, “We will continue to develop tasks with excellent performance and continue to discover and promote additional tasks that are necessary in line with the changing environment.” He added, “In the second half of the government, finance will play a greater role in the lives of the people.” .
