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Financial firms urged to channel funds to innovative startups

2018/01/03 15:20

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SEOUL, Jan. 3 (Yonhap) -- South Korea's financial regulator on Wednesday called for heads of banks and other financial institutions to channel funds to promising firms and startups in innovative sectors.

Choe Heung-sik, governor of the Financial Supervisory Service (FSS), made the remarks during a meeting for the new year with heads of banks, brokerages and insurance firms.

The financial industry should "play an important role of promoting economic growth by smoothly supplying funds to innovative areas," Choe told the meeting.

This file photo shows Financial Supervisory Service Gov. Choe Heung-sik. (Yonhap) This file photo shows Financial Supervisory Service Gov. Choe Heung-sik. (Yonhap)

Financial authorities have urged banks and other financial firms to invest more in startups, instead of focusing on household lending at a time when mounting household debt is dampening private consumption.

On Nov. 30 last year, the Bank of Korea raised its key interest rates for the first time in more than six years, saying that the pace of an economic recovery is accelerating.

Meanwhile, Choe said financial regulators will ensure more autonomy for financial institutions and stronger protection for financial consumers.

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