November 30, 2024

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Kim Joo-hyun, the new chief of the Financial Services Commission, speaks during an inauguration ceremony at the government complex in Seoul on Monday. (FSC)

Kim Joo-hyun, the new chief of the Financial Services Commission, said Monday that he would leverage all means and cooperate with authorities for financial market stabilization amid growing fears 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,” said Kim, who took office Monday.

He said he is aware of growing volatility and how it is affecting Asia’s fourth-largest economy as major economies lift rates globally.

Kim added that vulnerable groups – the ones who would be hit hardest by the Bank of Korea’s rate hikes this year – will receive government aid, 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 added.

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