Yoon slams banks, Kakao T for 'monopolistic' practices at town hall

President Yoon Suk Yeol said that Korean banks are "a monopoly of sorts" and "abuse their power a lot" in a town hall meeting on Wednesday, saying the government shouldn't ignore such behavior.

President Yoon Suk Yeol, center right, speaks at a town hall meeting on the economy and public livelihood with 60 people from all walks of life at a cafe in Mapo District, western Seoul, on Wednesday. [PRESIDENTIAL OFFICE]

President Yoon Suk Yeol said Korean banks are "a monopoly of sorts" and "abuse their power a lot" in a town hall meeting on Wednesday, saying the government shouldn't ignore such behavior.

"Banks have become like a government agency," Yoon said at a book café in Mapo District, western Seoul. "We must make this monopoly system of our country's banks competitive in some way and prevent it from happening."

Around 60 citizens of various occupations and ages, including office workers, small business owners and stay-at-home spouses, attended the government-civilian meeting to discuss the economy and livelihood issues.

"Compared to corporate loans, household loans and small business loans have a lower default rate and bonds are more stable, but business can't be done with this kind of attitude [from the banking industry]," Yoon said. "There needs to be a change."

Yoon also came down Kakao T, a taxi service app launched by Kakao Mobility, as also being "very tyrannical by taking advantage of its monopoly position."

He pointed to the "predatory" practice of "getting rid of all competitors by charging little money or setting very low prices, and then completely dominating the market," then raising prices after becoming a monopoly.

Yoon called such acts "immoral" and stressed the government must take measures against them.

He recommended measures such as reducing commissions for taxi drivers to around 1 percent, similar to credit card commissions.

Yoon also renewed his pledge to return to his roots and look after the interests of the ordinary people.

"I still vividly remember hearing the cries of self-employed merchants in Mapo who had a hard time due to Covid-19 and resolving to save people's livelihoods," said Yoon, dressed down, no-tie. "In Mapo, I will renew my original intention to care for the people's livelihoods with extraordinary determination."

Mapo District is significant because it is where Yoon first declared his decision to enter politics in 2021 after stepping down as prosecutor general in March of that year, and the location is seen to reflect Yoon's determination to return to his original pledge to take care of public livelihood.

"I declared my intention to go into politics on June 29, 2021, and the story of Mapo's self-employed people appears on the first page of my declaration," Yoon told the participants regarding his announcement of his presidential candidacy. "I come here again to listen to your sound words."

In his presidential candidacy declaration in June 2021, Yoon introduced the remarks of a Mapo self-employed merchant who asked, "How long will we have to endure? Why does the country only ask for sacrifices?"

Wednesday's town hall meeting was a part of the Yoon government's efforts to meet and communicate directly with the people about topics related to their daily lives amid inflation. Yoon was joined by aides, including the ministers for finance, land and SMEs.

"This location brings me back to the beginning," Yoon said. "The government must take care of the safety of the people, and it must resolve and assuage the people's difficulties."

He called to reallocate the budget to areas where ordinary people are in real need, noting he will "not weigh pros and cons in this era of political excess."

"I said I would not do politics for the sake of elections but for the people and those in need, and I made that clear in my budget speech at the National Assembly yesterday," Yoon said.

Attendees spoke about difficulties they were experiencing and made suggestions on what they wanted from the government, the presidential office said. Yoon, in turn, listened to each of their opinions, acknowledged the difficulties they have faced and explained future policy directions and measures to address such issues.

Yoon then instructed relevant ministers to "swiftly prepare and implement special measures to resolve the difficulties regarding people's livelihood raised today," the office said.

He stressed he bears his own "responsibility as the president," playing down blame on others.

The town hall comes a day after Yoon's parliamentary speech on next year's budget, where he asked bipartisan lawmakers to support the government's efforts toward fiscal soundness to improve people's livelihood and prevent the future generation from being burdened with debt.

The government's proposal for a 657 trillion won ($487 billion) budget for next year is the lowest on-year increase since 2005.

Democratic Party (DP) Chairman Lee Jae-myung calls President Yoon Suk Yeol’s parliamentary budget speech “disappointing” in his party’s supreme council meeting at the National Assembly in western Seoul on Wednesday. [YONHAP]

Democratic Party (DP) Chairman Lee Jae-myung, in turn, called Yoon's budget speech "disappointing" in his party's supreme council meeting on Wednesday.

"It even makes me wonder if they regard the people as monkeys," Lee said, as he criticized the lack of changes in the Yoon administration's state policies.

"I had high expectations for yesterday's budget speech, but unfortunately, it was very disappointing," Lee said. "There were no changes in national policy, just excuses, and no changes that we have requested were reflected."

The DP chief then expressed skepticism over Yoon's financial soundness policy, pointing to a lack of "reasonable explanations for cutting the research and development budget, without any practical measures to address the people's livelihood crisis."

This comes after Yoon and Lee held their first sit-down meeting ahead of the budget speech at the National Assembly, alongside People Power Party (PPP) chief Kim Gi-hyeon and judicial and governmental leaders.

Yoon was seen making several gestures to reach across the political aisle, such as mentioning Lee's name ahead of his own party's chief Kim and also bowing deeply in greeting Lee as he entered the National Assembly chamber.

Yoon was said to have personally removed from his budget speech criticism of the previous Moon Jae-in administration, which he has been prone to lambaste, according to presidential officials.

During Yoon's presidential campaign, he has frequently pledged to "achieve national unity by cooperating with conscientious and reasonable members of the Democratic Party," including in Daegu on March 8, 2022, on the eve of the presidential election, where he beat his DP rival Lee by a razor-thin margin.

However, Yoon has been criticized by DP lawmakers for being incommunicative and vindictive against the preceding government.

The PPP, after its embarrassing defeat by the DP in a critical by-election for Seoul's Gangseo District Office head spot earlier this month, has been working toward reforms and better including voices that can criticize the president from within the party. The reform measures come ahead of next year's general elections.

This includes the appointment of Ihn Yohan, a medical doctor who became the country's first special naturalized citizen, being named as chair of the PPP's innovation committee last week.

President Yoon Suk Yeol, center, claps at the 58th National Convention of Women at COEX convention center in Gangnam, southern Seoul, Wednesday. [JOINT PRESS CORPS]

Later Wednesday afternoon, Yoon attended the 58th National Convention of Women to encourage female leaders from across the country, said his office in a statement.

"Women must continue to play a more active, leading role in our society," Yoon said at the conference. "We will invest in finances for child care to remove factors that limit women's advancement in society."

Approximately 1,200 people, including political leaders such as PPP Chairman Kim and innovation committee head Ihn, and government officials, including Gender Minister Kim Hyun-sook, attended the event at COEX convention center in Gangnam, southern Seoul.

BY SARAH KIM [kim.sarah@joongang.co.kr]