Financial regulator vows greater role on job creation
Published : Sep 18, 2017 - 11:04
Updated : Sep 18, 2017 - 11:49
The head of the nation's top financial regulator said Monday he will put more emphasis on helping the government to create jobs and offer financial incentives for startups.

In a report to the National Assembly, Choi Jong-ku, chairman of the Financial Services Commission, said the FSC will eliminate entry barriers for financial firms to make inroads into new businesses.

Job creation is one of the top priorities of President Moon Jae-in, who has embraced income-led economic growth as his main economic goal.

"To achieve a job-oriented economy, we will offer support for startups and small- and medium-sized firms, and revamp our financing of policy," Choi said in the report.
Financial Services Commission Chairman Choi Jong-ku speaks during a National Assembly committee meeting Sept. 18, 2017. (Yonhap)

The FSC will unveil a fresh package of measures next month to rein in the growth of household debt.

Household debt stood at 1,388.3 trillion won ($1.19 trillion) at the end of June, up 10.4 percent from a year earlier, according to the Bank of Korea.

Choi said the FSC will cope with household debt to "prevent it from becoming a systemic risk."

To raise investor confidence, the policymaker said the FSC will encourage firms to adopt stewardship codes aimed at promoting engagement between companies and investors. This will allow investors to check whether companies are improving their governance.

In a separate report to the National Assembly, the Financial Supervisory Service, which is directed by the FSC, said it will shorten the procedure to grant investment-banking licenses to brokerages.

The government has pushed to nurture big investment banks modeled after Goldman Sachs as part of its plan to revamp the nation's capital markets.

Investment banks in excess of 4 trillion won ($3.5 billion) in equity capital will be eligible for short-term corporate lending, such as the issuance of commercial papers.

Currently, five brokerages -- Mirae Asset Daewoo Securities, NH Investment & Securities, Korea Investment & Securities, Samsung Securities and KB Securities -- have applied for investment-banking licenses.

A screening procedure for Samsung Securities has been halted as its major shareholders are mired in a lawsuit. (Yonhap)