President Lee Criticizes Financial Institutions for Monopolistic Practices, Weak Public Service

President Lee Jae-myung has sharply criticized the current state of the financial sector, highlighting a critical disconnect between the profit-driven operations of financial institutions and their fundamental public service obligations. Speaking at a state council meeting, the President did not mince words, labeling financial institutions as "quasi-public institutions" and questioning their very purpose when profit maximization becomes their sole objective.

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inclusive finance is an obligation for financial institutions.

His remarks pointed to a system where limited licenses foster monopolistic practices, leading to a "weak public service" despite these institutions' privileged market positions. President Lee expressed concern that this environment forces individuals with lower creditworthiness to rely on secondary financial institutions, loan sharks, and private lenders, often at exorbitant rates. This, he argued, fundamentally undermines the principle of finance, which should ideally average credit risks to offer fair interest rates.

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Financial institutions are quasi-public institutions. The idea that their existence is solely for making money is itself a problem.

The President's call for greater inclusivity in finance is not just a policy directive but a reflection of a broader societal demand for a financial system that serves all citizens, not just the most creditworthy. The Hankyoreh, as a publication often critical of corporate power and advocating for social equity, supports this push for a more responsible and accessible financial landscape. This initiative aims to ensure that financial services are a tool for economic empowerment for everyone, particularly the vulnerable, rather than a source of exclusion and hardship.

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Are you not restricting the establishment of other financial institutions and operating monopolistically? Yet, the public service aspect is too weak.