President Lee Jae Myung speaks during a Cabinet meeting at Cheong Wa Dae in Seoul, Wednesday. Yonhap
President Lee Jae Myung criticized financial institutions for prioritizing profits over their public responsibility, Wednesday, in the latest sign that the government may seek a bigger role in reshaping the country's financial system.
"Financial institutions are also part of the state order necessary to maintain the financial system," Lee said during a Cabinet meeting. "They differ from other private companies because they generate profits by lending funds supported through the central bank and state-backed financial systems."
"It is problematic in itself for financial institutions to think that making money is everything, or that it is their reason for existence," the president added, stressing that inclusive finance is a key obligation of the banking industry.
Lee made the remarks while referring to a series of recent Facebook posts by Kim Yong-beom, presidential chief of staff for policy, who argued that Korea's financial system has become structurally biased against low-credit borrowers.
In the posts, Kim said the current system effectively pushes low-credit and middle-credit borrowers out of mainstream financial services, calling on both regulators and financial institutions to rethink the structure of credit access.
The president openly endorsed Kim's stance during the livestreamed meeting. "You've made a good point. Financial institutions are quasi-public institutions," Lee said.
The Cabinet meeting also included a policy briefing by Financial Services Commission Chairman Lee Eog-weon on the government's push for more inclusive finance, focused on improving financial access, managing delinquent debt and tackling illegal private lending.
These developments come as the Lee administration increasingly signals a willingness to pursue broader reforms to the country's financial system.
The president's direct criticism of the financial sector is making lenders uneasy, according to industry officials, fueling concerns over heavier government intervention in banking practices and profitability.
Source: Korea Times News
