[2026 National Assembly Audit] Shin Hyunsong: "Joint inspection authority over nonbanks is limited... Will keep monitoring financial vulnerabilities"

Bank of Korea Governor Shin Hyunsong said on the 12th, in response to calls to strengthen oversight of nonbank financial institutions such as Saemaul Geumgo, “We have the authority to conduct joint inspections, but it is limited in some respects,” adding, “We will continue to monitor the situation closely so we can respond proactively.”

Shin Hyun-song, governor of the Bank of Korea, answers lawmakers' questions during a parliamentary audit at the Bank of Korea in Jung-gu, Seoul, on the 12th. Photo by Joint Press Corps/Yonhap News.

Shin made the remarks that morning during a parliamentary audit of the Bank of Korea by the National Assembly’s Finance and Economy Committee, responding to People Power Party lawmaker Yoon Young-seok’s criticism that the Bank’s financial stability monitoring was too focused on the stock market and commercial banks.

“Nonbank institutions are included in the Financial Vulnerability Index,” Shin explained. “The index rose to 65 just before the Legoland incident and has since fallen to around 46, its long-term average.”

He added, “We are checking all the channels through which financial risks could arise and continue to monitor the situation closely. We have some authority to conduct joint inspections, but its scope is limited. We will make sure we can act proactively, including through legislative amendments if necessary.”

In response to lawmaker Yoon’s call for the Bank to actively exercise its fundamental responsibility to maintain financial market stability, given that nonbank institutions with growing shares of financial assets could become a trigger during a crisis, Shin stressed, “As a central bank, we will continue to monitor the situation through a systemic financial stability and macroprudential approach.”

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