Seoul: The chief of the country's financial watchdog urged local banks Thursday to draw up measures to better protect consumers and focus on inclusive and productive finance. In a meeting with the heads of major local banks, Lee Chan-jin, governor of the Financial Supervisory Service (FSS), said banks need to revamp all procedures related to product sales for consumer protection, and play a role in creating inclusive finance for the underprivileged.
According to Yonhap News Agency, Lee emphasized the importance of banks channeling funds towards innovative companies and smaller firms, rather than simply generating income through interest. Earlier, the country's top banking groups, including KB and Shinhan, announced their commitment to implementing 70 trillion won (US$48.3 billion) worth of inclusive finance schemes over the next five years. These efforts aim to support the underprivileged, small merchants, and those facing challenges in accessing financial services.
Additionally, local banks will participate in the government's large-scale investment initiative, the Public Growth Fund, which was launched in December. The fund seeks to attract 150 trillion won in both government and private investment over the next five years. Its goal is to foster strategic high-tech industries such as AI, semiconductors, and renewable energy. The initiative also aims to distribute the benefits of economic growth more equitably while bolstering support for young entrepreneurs and startup founders.