South Korea: Yoon asks banks/telecoms to lower living costs
South Korean President Yoon Suk-yeol asks the private sector to “share the pain” and help those who are struggling the most. South Korean President Yoon Suk-yeol has asked the private sector, especially banks and communication services, to help keep prices from going up for the most vulnerable people in the country.
Bloomberg com: South Korea: Yoon asks banks/telecoms to lower living costs
President Yoon Suk-yeol of South Korea has asked the private sector to help stop the rise of risin’.
Wednesday, Yoon led a meeting of the country’s economy ministers to talk about how to deal with rising costs of living.
South Korea: Yoon verdict in a recent meeting:
The Sentinel Assam: South Korea: Yoon asks banks/telecoms to lower living costs
Yoon said at the meeting, “I think private sector players need to voluntarily join forces to share the pain by helping keep prices stable.” He pointed out that banks and communication services could play a role.
Yoon‘s office said that during the closed-door part of the meeting, the president told his staff to take steps to make the banking and communication services sectors more competitive.
At the same time, the government said it would start a task force this month to look into how to improve the way banks do business because of worries raised in the news about their high profits and large retirement payouts.
The task force would come up with plans by the end of June to increase competition:
In a statement, the government said that the task force would come up with plans by the end of June to increase competition, improve compensation plans, strengthen the ability to absorb losses, and make the banking sector less reliant on interest income.
The task force will be made up of financial regulators, banks, academics, legal experts, and consumer groups. It will also try to come up with ways to increase fixed-rate lending and banks’ contributions to society.
South Korea has 20 banks that are based there and 35 branches of foreign banks, but only a few of them do most of the business. Local news outlets have often criticized banks for making too much money by raising interest rates.
In the past few weeks, local media also said that some banks had given each early retiree hundreds of millions of won as a bonus.
There was no new plan in the government’s statement to make mobile phone services, which are also dominated by a small number of providers, more competitive.
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