Kim Byoung-hwan, the head of the Financial Services Commission, emphasized the importance of mutual savings banks recommitting to their core responsibility of serving their communities during a meeting with officials from asset management firms in Seoul. He urged the banks to promptly address risks associated with loans extended to real estate projects. Kim highlighted the long-standing contribution of the mutual banking sector to the balanced development of local communities and economic growth, but also acknowledged growing criticism that they are neglecting their natural duties in pursuit of external growth. The financial regulator has expressed concerns about the significant amount of short-term real estate project financing loans held by mutual funds and savings banks, which could potentially lead to problems. Kim stressed the urgency of resolving this issue and called for the quick liquidation of loans extended to failing projects within a government-led restructuring plan. He also emphasized the importance of the banks returning to their fundamental role of providing tailored financial products and services to meet the needs of their local communities, utilizing the deep data accumulated through their close relationships with the people in those areas.