[Asia Economy Reporter Kim Eun-byeol] On the 3rd, Lee Ju-yeol, Governor of the Bank of Korea, advised that the financial industry needs to actively respond, stating, "The impacts caused by demographic changes and technological advancements will become even greater in the future."
Governor Lee attended the '2020 Pan-Financial New Year's Meeting' held at the Shilla Hotel on the 3rd and said, "It is not easy to gauge the changes of the coming decade, but it is easy to predict that the impacts caused by demographic changes and technological advancements will grow larger amid the ongoing New Normal trend."
He particularly expressed concern about the rapid progression of natural population decline and aging, stating, "Demographic changes will cause significant waves across the economy and society." Governor Lee said, "The future shape of our economy can greatly differ depending on how the elderly manage and operate the assets they have accumulated over their lifetime," and added, "The financial industry must play a role in opening the way so that the accumulated resources can be allocated to innovation and new growth sectors to expand growth engines."
He also pointed out rapid technological innovation as an issue that will lead changes in the financial industry's landscape. As the Fourth Industrial Revolution accelerates, the business models of the financial industry are undergoing significant changes, and challenges from technology companies are intensifying. Governor Lee said, "Competition in innovation with technology companies can enhance the breadth and depth of financial services while functioning as a new growth engine."
He stated, "Last year, our economy went through a very difficult period due to worsening external conditions," and added, "Although this year’s internal and external conditions are not easy, I have expectations and hopes that it will be a better year than last year."
Furthermore, he emphasized, "If the past decade was a period of globalization and political-economic upheaval, the next decade will be a major turning point in demographics, technology, and new industrial structures," and said, "If we capture opportunities and proactively respond to risks from a mid- to long-term perspective, the financial industry will become a strong vanguard illuminating the future of our economy."
He also stated, "The Bank of Korea will review the policy framework to ensure stable growth of our economy under the changed economic conditions and actively support innovation in the financial industry."
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