South Korea aims to loosen the rules on separating banking and commerce as part of a push to encourage investment, Finance Minister Koo Yun-cheol announced on Thursday. While civic groups worry the move could mainly benefit large family-owned conglomerates, the government’s stance remains that easing financial regulations will enable bigger, technology-focused investments without compromising the existing prohibition on industrial players directly running banks.
During a televised policy briefing with President Lee Jae Myung, Koo explained, “We won’t override the current ban that prevents industrial powers from controlling banking. Instead, we intend to relax regulations to support substantial investments in high-tech sectors.”
Under the proposed changes, holding companies might gain some oversight over financial subsidiaries, a shift designed to facilitate funding for cutting-edge technologies.
In addition, Koo indicated the ministry plans to establish a new sovereign wealth fund to better manage national revenue, though he did not share further specifics.
Reporting by Heejin Kim and Cynthia Kim; editing by Ed Davies.
