Consideration centered on whether or not Woori Monetary chief will seem for presidency audit
By Jun Ji-hye
Pressure is rising within the monetary sector with the primary parliamentary inspection beneath the twenty second Nationwide Meeting approaching. Given a sequence of controversial incidents surrounding the trade, there’s a robust chance that main figures, together with chairmen of monetary teams, will probably be requested to seem on the inspection periods.
Explicit consideration is being drawn to Woori Monetary Group, which has been on the middle of controversy over big inappropriate loans prolonged to relations of its former chief.
The Meeting’s Nationwide Coverage Committee, which is answerable for monetary issues, plans to finalize a listing of figures to be delivered to the inspection periods by the top of this month. The schedule is about to start on Oct. 10, beginning with establishments such because the Monetary Providers Fee (FSC) and the Korea Deposit Insurance coverage Corp.
Key points anticipated to be addressed this yr embrace Woori Financial institution’s mortgage scandal, the liquidity disaster involving TMON and WeMakePrice, the sharp progress of family loans and the implementation of a monetary funding earnings tax.
Consideration is especially centered on whether or not Woori Monetary Chairman Yim Jong-yong will attend. In August, Yim made a public apology and acknowledged holes in his agency’s inside management system after the Monetary Supervisory Service (FSS) discovered that Woori Financial institution gave loans value 61.6 billion received ($46 million) from April 3, 2020, to Jan. 16 this yr to relations and associates of former Chairman Son Tae-seung.
FSC Chairman Kim Byoung-hwan mentioned throughout a press convention on Sept. 12 that he has “very critical considerations concerning this matter.”
Given the gravity of the problem and the extreme focus from each monetary authorities and the political sphere, it’s believed that it will likely be troublesome for Yim to refuse the request to seem earlier than the Meeting this time.
TMON and WeMakePrice’s huge money crunch, which triggered delays in funds to distributors and refunds to clients, can also be anticipated to be a key subject.
In July, the suspension of settlements by the 2 Korean associates of Singapore-based e-commerce platform Qoo10 led to important losses for quite a few sellers and shoppers. The injury is estimated to be round 1.4 trillion received, in line with the federal government information.
The supervisory tasks of the FSC and the FSS in relation to this matter are additionally anticipated to be addressed.
Moreover, heated debates are anticipated over the expansion of family debt, as loans throughout all monetary establishments elevated by 9.8 trillion received in August in comparison with the earlier month. This marks the biggest improve in three years since August 2021, prompting considerations that the rising debt poses a risk to financial progress.
Rival events are additionally anticipated to take care of a monetary funding earnings tax that’s set to take impact subsequent yr, with the federal government calling for scrapping such a tax scheme to ease market uncertainty and assist enhance the inventory market.