Seoul: The chief of the country's financial regulator has called on banks to play a more significant role in productive finance while promising to further relax capital requirement rules. Lee Eog-weon, chairman of the Financial Services Commission (FSC), met with heads of local lenders on Monday and emphasized the need for banks to redirect their lending practices towards innovative and productive sectors.

According to Yonhap News Agency, Lee explained that with the government's easing of capital requirement regulations, banks are encouraged to increase their engagement in productive finance. He assured that the regulator will persist in its efforts to further ease these rules. Lee also stressed the importance of managing household debts, which remain persistently high with no significant signs of decline.

The financial regulator chief further highlighted the necessity for banks to enhance their internal controls and security measures. This call comes amid growing concerns over cybersecurity breaches, which pose significant risks to financial stability and consumer trust.