FSC Chairman Lee Pledges Faster Digital-Asset Legislation, Expanded Support for Vulnerable Borrowers and Tight Household Debt Control

Lee Eog-weon, chairman of the Financial Services Commission, said he would push ahead with digital-asset legislation and measures against financial crime while expanding financial support for vulnerable groups during a period of rising interest rates. He also pledged to keep household debt under tight control while continuing to provide funding for end-user homebuyers and lower-income households.

In opening remarks at an Oct. 8 parliamentary audit before the National Assembly’s Political Affairs Committee, Lee said he would work to accelerate legislation aimed at creating a sound digital-asset ecosystem. He did not elaborate on the bills’ contents or provide a legislative timetable.

The government will also strengthen its response to voice-phishing schemes that exploit virtual assets, or cryptocurrencies. Lee highlighted as key achievements the creation of a system to share suspicious information across the financial, telecommunications and investigative sectors, as well as a regulatory framework for voice phishing involving virtual assets. Efforts to improve suspicious-transaction detection will continue, he added.

Support for vulnerable groups will focus on lowering interest rates on policy microfinance products and expanding the supply of new programs. Lee said external uncertainty has grown as global monetary policy has shifted toward tightening and the war in the Middle East has dragged on. For long-term delinquent borrowers, the government plans to restructure or write off debts that are difficult to repay, while overhauling debt-collection practices and the management system for delinquent loans.

The government also plans to expand tailored financial support for young people and small-business owners. It will continue rolling out products such as the Youth Future Savings program to address limits related to income and financial transaction history, and introduce a credit-assessment model tailored to small-business owners. Small merchants with long-term delinquent debt will receive step-by-step support, from debt restructuring to business recovery.

Lee stressed that household debt management and support for genuine end-users would proceed in parallel. The government will maintain a strict household debt management stance, including curbing speculative loan demand, while ensuring an adequate supply of microfinance and mid-rate loans. It will also pursue tailored support for end-user homebuyers and financial support to promote housing supply.

On industry support, Lee said the government would expand the National Growth Fund to 200 trillion won ($145 billion) from 150 trillion won ($109 billion), while broadening eligible recipients and increasing direct investment. It also plans to raise the share of policy financing allocated outside Seoul and offer preferential funding to regional strategic industries and companies relocating to provincial areas.

The government will also ease network-separation regulations for the financial industry on the condition that security is maintained, and draw up measures to improve the competitiveness of financial companies and the fairness of their governance structures. Lee asked lawmakers for support on the legislation and budget needed to carry out the policies.