Financial authorities in South Korea have introduced a task force to boost the banking industry’s business practices and management.

It includes scholars, as well as officials of the Financial Services Commission (FSC) and Financial Supervisory Service (FSS) and major financial industry associations.

Aimed at easing the burden of public amid interest rate hikes, the move follows President Yoon Suk Yeol’s criticism of banks’ market dominance and excess profits.

The authorities are considering bolstering “clawback” provisions for bank executives and allowing shareholders the right to vote on executives’ remuneration, reported The Korea Times

Besides, measures to improve competition in the banking sector will be weighed.

These measures reportedly include the possible launch of a small licence or a certification system for a lender’s each separate function, and challenger banks. 

FSC vice chairman Kim So-young was quoted as saying by the news publication: “The banking industry has an oligopoly structure, as the entrance into the banking market is limited by the government’s approvals.

“There are criticisms that banks rake in excessive profits from rising interest rates, rather than providing ample choices and differentiated services for customers.”

According to Reuters, the panel would also mull actions to bolster capital buffers against external shocks.

“By doing so, we believe that Korea’s banking industry will be able to get more competitive and efficient, which will make the Korean financial markets more attractive to investors,” FSS governor Lee Bok-hyun was quoted as saying by the news agency.

FSC and FSS co-hosted the first meeting of the task force. Specific measures are  expected to be outlined by the end of June.