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Lawmakers Grill Financial Officials over Savings Banks Scandal on 2nd Day of Annual Audit

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2011-09-20

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On the second day of audits‚ legislators of the National Assembly's policy committee questioned officials from the Financial Services Commission about how dozens of local savings banks have all ended up being suspended for liquidity shortages.
Lawmakers from both the ruling Grand National Party and the main opposition Democratic Party said that the government's attempt to calm depositors by assuring it was safe to leave their savings in the banks had only made things worsefor the suspension of these banks only led customers to lose more money.
[Interview : Kim Seok-dong Lee Bum-rae
FSC Chairman GNP Lawmaker
] "Six banks have avoided suspension but it is highly likely that they managed to get away by a small margin. I think information on those banks should also be available for the public."
[Interview : Park Sun-sook Kim Seok-dong
DP Lawmaker FSC Chairman
] "Even those that received government's financial aid have ended up being suspended. This is the reality where the government's words of 'fairness' and 'transparency' simply cannot rebuild the broken trust."
Meanwhile‚ Korea's Prosecutor General Han Sang-dae proposed a joint investigation team with other financial regulators such as the Financial Supervisory Service and Korea Deposit Insurance Corporation in order to conduct a thorough investigation on the scandal while pledging to root out corruption in the nation's financial sector.
And during the Strategy and Finance Committee's audit on the finance ministry‚ next year's two potential presidential candidates voiced the needs to reduce the amount of capital spent on building social infrastructures and spend more on improving the nation's social welfare systems instead.
[Interview : Bahk Jae-wan Park Geun-hye
Finance Minister GNP Former Chairperson
] "I believe we can reduced reduce the country's social overhead capital by ten-percent"
[Interview : Sohn Hak-kyu‚ Chairman
DP] "We need to invest more in human capital and that is what our society demands as a welfare policy."
A total of 13 standing committees at the National Assembly will continue their audits on government offices until October 8th.
Laah Hyun-kyung‚ Arirang News.
Reporter : jlaah@arirang.co.kr

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