The financial authorities are taking steps to ease the financial burden on vulnerable borrowers, including small businesses and self-employed individuals, while also strengthening oversight against rising illegal lending and financial crimes. This initiative aims to proactively address increasing volatility and uncertainty in the financial markets.
Lee Chan-jin, Chief of the Financial Supervisory Service, held a press briefing on June 22, stating, "In anticipation of interest rate hikes, we must prepare for potential volatility and deterioration in market stability. We are exploring various support measures in collaboration with the Financial Services Commission to alleviate repayment burdens for small businesses and self-employed individuals."
While a recent tentative peace agreement between the U.S. and Iran has somewhat eased uncertainty in global financial markets, risks such as inflationary pressures from high oil prices and potential changes in monetary policies of major countries remain.
Lee expressed concern over the growing issue of illegal lending, particularly among youth and military personnel. He noted that financial crimes combining online gambling and illegal lending are spreading among teenagers, with military personnel also becoming victims, indicating that mere post-factum enforcement is insufficient.
Referring to the recently aired drama 'Education of the Future,' Lee remarked, "The issues of gambling and illegal lending in schools and the military have become far more serious than in the past." He highlighted the increasing instances of illegal loan advertisements on online platforms and social media, exposing vulnerable groups, including minors, to criminal activities.
Lee also voiced concerns regarding the overheated stock market, particularly regarding single-stock leveraged exchange-traded funds (ETFs) for Samsung Electronics and SK Hynix, which he believes encourage excessive trading.
He pointed out, "As semiconductor blue chips exhibit tremendous turnover, investors are incurring trading fees ranging from 5 trillion to over 10 trillion won, which could ultimately benefit only the brokerages." He noted that approximately 92% of investors in these products are individual investors and emphasized that during previous downturns, losses had expanded to as much as 37%.
Regarding the recent cancellation of the SpaceX public offering allocation by Mirae Asset Securities, Lee stated that a thorough on-site inspection is underway. He acknowledged that this is a matter of significant investor dissatisfaction and committed to thoroughly investigating whether it was a communication issue with the lead underwriter or if other factors were involved, to prevent recurrence.
* This article has been translated by AI.
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