FSC focuses on responding to Japan
ANSEONG, Gyeonggi Province — Financial Services Commission (FSC) Chairman Eun Sung-soo vowed to provide all possible support for local firms to deal with the fallout from Japan’s exports curbs.
His pledge came Tuesday during a visit to a local equipment manufacturer, his first official visit to a private enterprise since taking office Sept. 9.
At a manufacturing facility of IONES, a local semiconductor and display equipment producer, the new top financial regulator said that the government will make every effort to enhance the competitiveness of those sectors, which have been highly reliant on trade.
“I heard concerns over supply of key parts, materials and equipment have emerged since Japan unfairly took retaliatory measures Aug. 2,” Eun said during a meeting with local manufacturers related to Japan’s export curbs. “The FSC will provide a wide range of support, so that domestic companies do not have to face managerial difficulties over Japan’s export curbs and our parts, materials and equipment industries raise their competitiveness.”
During the meeting, the small- and medium-sized manufacturers called for financial support, mentioning the financial difficulties they face when developing their technologies.
They urged financial institutions to take their potential into account when lending them money, without being overly afraid of risks.
“In order for small firms like us to turn crisis into opportunity, financial support is necessary for industry-academic cooperation and R&D,” IONES CEO Lee Mun-ki said.
They also said Japan’s export controls will weigh on them in the near future, although the retaliatory measures have had a limited impact on them so far.
Eun promised the government will dispel their worries by cooperating with financial institutions for swift and sufficient financial support for companies affected by Japan’s measures.
According to the FSC, the nation’s state-run lenders and commercial banks funded 539 billion won ($453 million) for such companies as of Sept. 6.
Accompanying Eun on his visit to IONES, executives of the government-run financial institutions, including the Korea Development Bank, the Industry Bank of Korea, the Export-Import Bank of Korea, the Korea Credit Guarantee Fund and the Korea Technology Finance Corporation, vowed to give support to overcome fallout from the trade feud with Japan. The FSC chairman also said the government will push ahead with raising a fund that invests exclusively in those sectors.
According to the chairman, the government will support M&As of Korean firms with foreign parts, materials and equipment manufacturers as well.
“We have overcome difficulties caused by imports of Japan’s electronics products and cultural contents in the past. Samsung became the world’s leading electronics maker and the Korean wave defeated Japanese culture,” he said.