New FSC chief vows to stabilize markets, ease rules

Kim Joo-hyun, the new chief of the Financial Services Commission, said Monday that he would use all resources and cooperate with authorities for market stability at his inauguration, held after a divided National Assembly had sat on his hearing. 

Kim, who does not need lawmakers’ approval to take office, underscored mounting concerns that aggressive rate hikes by the US Federal Reserve would further dampen investor optimism here.

“Rapid inflation is eating into the economy. Economic and political factors, such as COVID-19-induced liquidity and geopolitical tensions, have complicated the challenges we face today,” Kim said.

Rate hikes backed by major economies add to growing volatility and Asia’s fourth-largest economy has to find a way to ride out the crisis, according to Kim.

Kim underlined support for vulnerable groups, the ones who would be hit hardest by the Bank of Korea’s rate hikes this year, describing loans as the first step to help self-employed people, small business owners and those fresh out of college.

Kim added that the top financial policymaker would cut red tape, so the financial institutions are not outrivaled by their global peers because of bureaucratic delays.

“Unnecessary regulation or something that unfairly discriminates financial companies will be revisited, even if the government has left it untouched until now,” Kim said, describing the government as a troubleshooter.

Deregulation will take place without costing measures in place to protect investors and consumers, he noted.

By Choi Si-young (siyoungchoi@heraldcorp.com)