Chief financial regulator urges banks to extend more loans to companies

SEOUL, Dec. 23 (Yonhap) -- South Korea's chief financial regulator on Monday called on financial institutions to extend more loans to companies in the latest move to help revitalize the economy.

Financial Services Commission Chairman Eun Sung-soo said the institutions need to funnel more capital toward small and medium-sized companies with new technologies and growth potential.

"It's time for us to shift the direction of capital flows for the innovative growth of our economy as well as the sound development of our financial industry," Eun said in a meeting with more than 50 participants, including government officials, professors and lawyers.

Currently, South Korean financial institutions have excessively extended home-backed loans and other loans to households.

The commission said it will provide incentives to financial companies for handling corporate loans in a move to encourage banks and other financial companies to extend more loans to companies.

entropy@yna.co.kr
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