A chief regulatory official on Friday hinted at a drastic easing of regulations on financial firms’ advancements overseas in an effort to help businesses overcome low profitability in the saturated domestic market.
During his meeting with executives from major financial firms in Seoul, Financial Services Commission chairman Yim Jong-yong said that the authority “would review all regulations (on their overseas business) from square one to help them tap into foreign countries.”
Yim said it was difficult to expect the financial sector to see more growth if limited to the domestic market.
He clarified that the meeting was aimed at addressing the difficulties faced by financial firm employees, and promised to consider revising unnecessary red tape.
Participants included executives and employees from KB Kookmin Bank, Korea Exchange Bank, KDB Daewoo Securities, NH Investment and Securities, Samsung Life Insurance, Hanwha Life Insurance and the Korea Exchange.
Some market insiders pointed out that financial firms are also held accountable, as they are stuck on the home turf with conventional business methods targeted mainly to Korean consumers.
For example, major commercial banks have been excessively dependent upon interest income, with a relatively lax stance on diversifying their income sources.
Nonbanking sectors, such as stock brokerages and insurance and credit card services, have been less aggressive about overseas expansion than the first-tier banking sector.
By Kim Yon-se (kys@heraldcorp.com)
