President Lee: Financial Institutions Must Prioritize Inclusive Finance; Farmland Rules to be Reformed

President Lee Jae-myung has asserted a strong vision for the financial sector, unequivocally stating that financial institutions operate as quasi-public entities and that the practice of inclusive finance is not merely encouraged but is an inherent obligation. This declaration, made during a State Council and emergency economic inspection meeting, lends significant weight to recent calls for strengthening the public nature of finance. The President's remarks signal a clear intent to accelerate policies aimed at making financial services more accessible and equitable for all citizens, particularly those who have been historically underserved.

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Financial institutions are quasi-public institutions, and inclusive finance is one of their obligations.

Lee's critique of the current banking practices was pointed, highlighting a perceived overemphasis on profit maximization at the expense of public service. He specifically called out the tendency of banks to cater predominantly to high-credit individuals, leaving those with lower credit scores to seek recourse in secondary financial markets or even predatory lending. The President argued that the very structure of banking, which benefits from government-granted monopolies and limited entry, necessitates a greater commitment to public interest. He stressed that financial institutions, by virtue of their privileged position, must balance profitability with their public duty, suggesting that the latter has been significantly neglected.

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The idea that making money is the only thing that matters, that it is the purpose of a financial institution's existence, is itself a problem.

Beyond the financial sector, President Lee also turned his attention to agricultural policy, reinforcing the constitutional principle of 'farmer-cultivator' (Gyeongja Yu-jeon), which stipulates that farmland should be owned by those who cultivate it. Receiving a report on a comprehensive farmland survey, Lee acknowledged the difficulties in enforcing this principle, citing past experiences where systemic and practical barriers hindered effective implementation. He mandated a fundamental reform of the related systems and enforcement mechanisms to ensure that the principle is not just a theoretical concept but a practically applied reality, aiming to prevent speculative land ownership and ensure that agricultural land serves its intended purpose.

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Are banks not operating with a monopoly by restricting the creation of other financial institutions? I always feel that publicness is too weak on both profitability and publicness.