YOON TAKES AIM AT ‘MONEY PARTY’ OF BANKS

[Anchor Lead]

Banks have been logging record profits these days due to steep interest rate hikes. President Yoon Suk Yeol ordered officials to devise measures so that the public do not feel alienated from what he called the banks' "money party." The president is likely to discuss measures with banks to strengthen their public responsibility and expand support programs such as expanding low-interest loans.

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In a meeting with his aides, President Yoon Suk Yeol mentioned the high interest rate and banks' excessive profits. Noting that ordinary citizens are suffering from the high cost of borrowing, Yoon ordered officials to devise measures so that the public do not feel alienated from what he called the banks' "money party." Due to steep interest rate hikes, banks have been logging record profits. Interest earnings of the country's four major financial groups reaped last year increased by nearly 5 trillion won from the previous year. Banks also reportedly paid several hundreds of millions of won to employees who were signing up for voluntary retirement.

[Soundbite] Lee Do-woon(Spokesperson, Presidential office) : "Creating financial breathing space for struggling public, self-employed and small business owners."

The president proposed that banks work toward so-called 'finance of co-existence”and expand their reserve funds to prepare against future market uncertainties. The presidential office said measures for banks to give more back to society and expand support programs for the socially vulnerable will be discussed. Possible measures include increasing low interest loans for low income earners and the self-employed and allowing more people to shift from a high-interest loan to a low-interest replacement product. The top office's remarks have sparked controversy over possible state intervention in the private sector. But it's not the first time President Yoon emphasized the "public nature" of banking institutions.

[Soundbite] Yoon Suk Yeol(President(Jan. 30)) : "Public funds were injected in the past to restructure insolvent banks. Banks are different from completely private enterprises. They are in part public assets."

The latest directive comes amid criticism that policy measures for public livelihood are being sidelined by the spotlight on disputes related to the ruling party's leadership election. The presidential office says that similar economic moves will continue for the time being.