The South Korean Government's Stance on Bank's pocket

  Hey, did you know that the South Korean government is kinda pointing fingers at banks, calling them the bad guys for making money off Koreans? Here's the deal. Interest rates have been shooting up (sharply going up), and it's hitting people hard. They're struggling to pay back loans for stuff like houses and cars. 
 
  Meanwhile, these banks, they've been raking in some serious dough, all thanks to the gap between the interest rates they charge on loans and the interest they give on deposits. It's like a money-making machine for them. Whenever the loan interest rates go up, they cash in, except for the interest they've gotta hand over to the folks who've parked their cash in those bank accounts.

  Now, here's the government's beef - they're saying these banks are basically dipping into the pockets of hardworking Koreans by slapping them with high borrowing rates. It might sound like the government's being a bit too nosy, you see, if you wanna run a bank business in Korea, you've gotta get this fancy license, and guess what? Only the government can hand those out. They've basically blocked off the competition from waltzing in and setting up shop. So, there's only a handful of banks in the game, and the government figures they should give a little back to the people, considering all the perks they've got.  
  
  
 

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Korean governement is targeting banks as an evil stealing money from koreans. As the interest rate has sharply been going up, people are suffering from having to pay back for what they’ve borrowed like a house debt, auto loan and more. At the same time, banks have made huge profits from the gap between interest rate for loan and for deposit. Banks usually makes money with that gap. If interest rate for a loan goes up, they make money except the interests they have to give their customers who deposited their money in their bank accounts.

  Korean government has insisted banks have got innocent korean’s money through charging them the high interests for borrowing. You are likely to think the government is too much controlling banks to do what they want. But, they have their own reasons for their behavior. If you’d like to run a bank business in Korea, you have to get a license. The license can be permitted only by the government. The government has blocked the way other competitors come in to this business. So, there are only a few banks in Korea. So, the government think banks should contribute to pay folks back, appreciating incentives they’ve got.