Seoul: The new chief financial regulator has pledged to lead initiatives aimed at channeling funds into "productive" sectors by revamping relevant policies and regulations. In his inauguration speech, Lee Eog-weon, the chairman of the Financial Services Commission (FSC), emphasized that financial companies' roles in productive finance will be supported through policy and regulatory changes.

According to Yonhap News Agency, President Lee Jae Myung approved Lee's nomination as the country's chief financial regulator on Friday. Lee criticized the current practice of extending loans backed by collateral, stating it has not sufficiently supported economic innovation. He proposed changes to supervisory and prudential regulations on financial institutions to shift the focus away from real estate and toward innovative sectors.

Lee also highlighted his commitment to revitalizing financial markets and managing household debt. Additionally, he vowed to enhance consumer protection measures and encourage financial companies to strengthen internal controls in light of recent financial mishaps. Addressing the issue of rising household debt, Lee indicated that his agency will intensify efforts to mitigate it.