The head of the Financial Services Commission(FSS) has dismissed the criticism that a series of measures recently announced by the government for the financially vulnerable encourages moral hazards by paying off the debts owed by those who invested in cryptocurrencies. 

In a meeting with reporters on Monday, FSC Chairman Kim Joo-hyun defended the government aid package, worth some 125 trillion won, saying it is a supplement to the debt adjustment system already underway. 

He then pointed to debt settlement schemes for financially vulnerable groups that have been operated by companies, the nonprofit Credit Counseling and Recovery Service, the court and others. 

He also said that not all funds set aside for the new aid program will come out of the state’s coffers, adding that some will be procured via bonds. 

The government announced the debt restructuring program during an emergency economy and public livelihood meeting last Thursday. 

The FSC chief admitted that some of the phrases used in the press release for the announcement were intended to vividly portray related problems and could be seen as controversial, but denied the package was designed to benefit unsuccessful cryptocurrency investors.