Overview

• FSC Chairman Lee Eog-weon and FSS Governor Lee Chan-jin met in Seoul on Sept. 29 and pledged coordinated reforms after a government reorganization kept both agencies intact.
• The pair agreed to overhaul regulatory and supervisory frameworks to better counter financial scams, cybersecurity breaches, and improper sales of financial products.
• They committed to policies that steer capital toward productive economic activity, pushing banks to move beyond collateral-based lending criticized for underserving innovation.
• In a separate session with bank leaders, Lee urged more lending to innovative, productive sectors and said capital requirement rules will be eased further.
• He also pressed lenders to tightly manage household debt and strengthen internal controls and security.