Seoul: The new chief financial regulator, Lee Eog-weon, has announced his commitment to overhauling policies and regulations to channel financial resources into “productive” sectors. In his inauguration speech, Lee, the newly appointed chairman of the Financial Services Commission (FSC), emphasized the need for reforms that empower financial companies to play a crucial role in productive finance.

According to Yonhap News Agency, Lee’s appointment as the country’s chief financial regulator was approved by President Lee Jae Myung on Friday. Lee criticized the current practice of extending loans backed by collateral, noting that it has not adequately supported economic innovation. He revealed plans to adjust supervisory and prudential regulations on financial institutions to shift focus away from real estate and encourage investment in innovative sectors.

In a meeting with leaders of financial holding companies, Lee outlined his strategy to streamline regulatory frameworks for financial firms. He urged a shift towards consumer-oriented and trust-based finance models. Additionally, Lee called on financial institutions to contribute more significantly to the sustainable growth of Asia’s fourth-largest economy.

Lee also highlighted his plans to revitalize financial markets and tackle the management of household debt. He promised to enhance measures for safeguarding financial consumers and urged financial companies to strengthen their internal controls in response to recent financial mishaps. Addressing the issue of rising household debts, Lee committed to intensifying efforts to curb them.