Financial Services Commission Chairman Lee Eok-won said on the 22nd that he understands the relocation of Korea Development Bank to Busan has been settled as not going forward in the National Assembly. He stopped short of confirming whether dropping the move is the government's official position.
Lee made the remarks at a comprehensive parliamentary audit by the National Assembly's Political Affairs Committee, responding to Rep. Park Sung-hoon of the People Power Party, who asked about the government's stance on the relocation. "I understand it was settled early on," Lee said. When Park pressed him again on whether that is the government's official position, Lee said, "All I can say is that it is being discussed in the National Assembly," stressing that the matter falls under the legislature's authority. A bill to amend the Korea Development Bank Act to enable the Busan move is pending in the National Assembly.
Financial authorities are also considering tighter oversight of advisory posts at financial holding companies. Financial Supervisory Service Governor Lee Chan-jin said, "We will work to supplement the governance improvement plan being prepared by the Financial Services Commission through further consultation, including the parts hidden in shadow form such as advisers and consultants."
Regulators are also pushing to expand disclosure of how banks set lending rates. When Political Affairs Committee Chairman Yoo Dong-soo proposed disclosing commercial banks' rate-setting process, Lee Chan-jin said, "We are preparing measures that strengthen consumer choice in a 'naming and shaming' format, including disclosure." He said the FSS is also discussing with the FSC whether to apply rules such as the debt service ratio (DSR) and loan-to-value (LTV) limits to in-house loans extended by large companies.
Lee Eok-won said the U.S. listing of Solidigm, a subsidiary of SK hynix (000660.KS), falls under the guidelines on duplicate listings. "SK Square (402340.KS) and SK hynix, affiliates within a vertical ownership structure, must carry out the five obligations based on the duty of loyalty to shareholders as parent companies," he said.
He dismissed as false a rumor circulating in the market that mortgage lending would be banned outright for homes valued at 1.5 billion won or more. Asked about criticism that the overall cap on household lending is effectively being enforced as a mandate, he said prudential regulation of the financial industry is necessary.