In addition, the Democratic Party is increasing the pressure on private companies and financial sectors day after day through the corona benefit-sharing system and the K-New Deal. Although the intention is to call for voluntary win-win and cooperation to overcome the economic crisis caused by the novel coronavirus infection (Corona 19), the voices between companies and financial companies, which are parties, are saying, “Isn’t it excessively transferring the part that the government has to deal with?” There are also not a few.
Democratic Party “The financial sector is the best in the COVID-19 phase”
On the 22nd, the Democratic Party’s arrow turned to the financial sector first. Democratic Party President Lee Nak-yeon and Supreme Commissioner Shin Dong-geun met with Kim Tae-hyun, Deputy Secretary General of the Financial Services Commission this morning. Ahn Jin-geol, director of the Institute for Public Affairs, and Koo Bon-gi, head of the Institute for Life Economics, and other civic groups called’friendliness’ also participated as consumer groups.
On this day, the Democratic Party’s Small Enforcement Committee (Chairman Shin Dong-geun) and the Financial Services Commission adopted an agreement containing the details of promoting loan expiration extensions for small business owners and small and medium-sized enterprises affected by Corona 19. The agreement also included the content that the consumer credit law, which contains rights such as the right to request debt adjustments of individual debtors, should be immediately legislated, and that a TF was formed to promote the right to request interest rate cuts and improve the system, and to make efforts to improve the system.
Prior to this, at 10 am, the chairmen or bank heads of Korea’s five major financial holding companies (Shinhan, KB, Hana, Woori, and NH Nonghyup) convened at the Banking Federation. It was a meeting held by the Democratic Party to discuss ways to participate, saying, “Private participation in the K-New Deal and overcoming the Corona 19 crisis is essential.”
Kim Jin-pyo, chairman of the National Economic Advisory Council, said in his remarks on the day, “To lay the foundation for the Korean economy to become a leading economy within the remaining one year and four months of the current government, how quickly private investment funds in the financial market will lead to K-New Deal-led companies and innovation? The key is whether to enter a company that participated in the corporate program.” He said, “Since you have established policies to strengthen incentives, please do well to figure out how to get more funds into the K-New Deal Fund.”
At a closed meeting, the Democrats said, “Please expand support so that funds concentrated in real estate can turn to the K-New Deal project.” “55% of total financial loans are unfavorable for real estate finance. If it is known that the real estate yield is higher, speculative capital may be concentrated, so an appropriate guideline is needed.” In the banking sector, the ruling party’s arguments were interpreted as being in the process of strengthening regulations on real estate finance with the K-New Deal.
In the banking industry, which has already been mobilized to create securities and bond market stability funds since Corona 19, voices of concern over the future of passports are growing. In particular, as the Corona 19 crisis prolongs, demands such as delay in repaying principal and interest are increasing for self-employed and small and medium-sized businesses. An official from the financial sector said, “I agree that financial companies should cooperate when the economy is difficult. However, whenever a crisis situation arises, the government is excessively transferred to financial companies and burdened.”
Another financial sector official said, “If you continue to delay the maturity of SME loans (as requested by your passport), you can increase the risk of insolvency. At least, marginal companies should discuss further extensions after a plan to thin them out.”
Platform companies also press… The reaction is’apathy’
Some people complained about the Democratic Party’s actions that pressed both the Financial Services Commission and the financial holding companies at the same time, saying, “Because the platform companies did not respond, the easiest banking sector was picked up” (financial holding company executives). This year, the Democratic Party has mainly discussed and pressed platform companies as corona-beneficiaries and profit-sharing targets, but when major platform companies did not cooperate, they turned to the regulated financial sector.
In fact, the Democratic Party held a meeting the day before with four platform companies, including Naver Financial, Kakao Pay, Graceful Brothers (Baedal People’s Operator), and Riot Games (online game League of Legends), but the companies expressed their rejection and a meeting was held. It was lost. Instead, on the afternoon of the 22nd, the Democratic Party held a video conference on the theme of the profit-sharing system with associations with major platform companies such as the Korea Fintech Industry Association, Internet Enterprise Association, and Korea Startup Forum. Kakao is the chairman of the Fintech Industry Association and Naver is the Internet Enterprise Association.
CEO Lee said at this meeting, “Platform companies have been making efforts for win-win cooperation with partners. “We are here to hear your opinions on how to effectively develop mutual prosperity and solidarity in that extension.” Vice Minister of Small and Medium Venture Business Kang Seong-cheon said, “It is a situation where voluntary win-win growth such as rent and commission reductions and advertising expenses support are spreading in the private sector,” with the intention of participating in the profit sharing system for platform companies.
Accordingly, platform companies emphasized that they are already engaged in win-win cooperation, and that the situation facing platform companies is not easy. Korea Startup Forum CEO Choi Seong-jin said, “I asked for a case of win-win growth, so I briefly investigated it, but there are a lot of them.” “The startup industry is growing rapidly, but there are few startups with profits.” Seong-won Jang, the secretary of the Fintech Industry Association, also said, “Fintech companies continue to create youth jobs and contribute to a well-lived society.”
Meanwhile, the Democratic Party has additionally joined the post-corona inequality resolution TF with Chairman of the Party’s Strategic Planning Committee, Chung Tae-ho, who served as senior job at the Blue House. The intention is to speed up the promotion of the profit-sharing system, which CEO Lee brought up as a topic for the new year. In a phone call with the JoongAng Ilbo on that day, Rep. Chung said, “We will speed up and materialize it until the 2nd of next month when Lee gives a speech on the representative of the bargaining organization.”
Reporters Ji-Hyun Yeom and Seung-Hwan Song [email protected]