South Korea’s Financial Services Commission (FSC) Chairman Shin Je-yoon has agreed with Myanmar policymakers to export corporate credit rating and other financial systems to the country.
The FSC said last week that it will dispatch financial policy advisors to Myanmar to support Korea’s Credit Bureau (CB), a Seoul-based credit-evaluation-service system for financial firms, and a corporate credit rationing system to be adopted there, according to South Korean media reports.
Chairman Shin attended the Korea-Myanmar ADB Financial Forum on June 2 to share Korea’s financial development experience and promote partnership.
At the forum, Shin introduced Korea’s successful financial systems, such as its corporate credit rationing system and experiences on policy loans and its deposit insurance system, which have contributed to Korea’s economic development.
He said the challenges facing Myanmar’s banking sector are lack of financial support to small and medium-sized companies, too much reliance on secured loans and a drop in banking confidence due to a chain of bank runs.
“Korea’s financial sector has successfully navigated a series of financial waves. Korea’s experience will help Myanmar explore ways to restore confidence and improve competitiveness in the banking sector,” he was quoted as saying.
Shin also stressed that Korea will be a strong partner to Myanmar as many financial firms in Korea are actively looking to invest in the Myanmar market.
Korea has supported Myanmar to develop the stock market and provided technical training for anti-money laundering and financial supervision.
“Korea and Myanmar share many similarities in culture and history. I hope that the next Korean wave happens in the financial sector,” he said.