Preparing Financial Policies for 2022 Reflecting Discussion Outcomes
[Asia Economy Reporter Park Sun-mi] Go Seung-beom, Chairman of the Financial Services Commission, held a meeting with heads of economic and financial research institutions to discuss the 2022 financial market outlook and financial policy tasks. The Financial Services Commission plans to prepare its 2022 work plan reflecting these discussions.
According to the Financial Services Commission on the 30th, Chairman Go held a meeting at 2 p.m. as part of the process of establishing the 2022 FSC work plan to review and discuss next year's financial market conditions and financial policy tasks. Six heads of economic and financial research institutions participated.
Park Jong-gyu, President of the Korea Institute of Finance, emphasized the importance of "financial development based on financial stability" and highlighted that, considering conditions such as domestic and international interest rate hikes in 2022, pre-inspection and institutional preparation to alleviate financial imbalances are very important. Regarding the activation of big tech's entry into finance, he added the suggestion that “to lead to the long-term development of the financial industry, it is important to create a fair competitive environment by resolving regulatory arbitrage, but balanced government approaches are needed so that innovation is not hindered in the process.”
Shin Jin-young, President of the Korea Capital Market Institute, mentioned the need to establish a consumer protection system in response to the expansion of virtual asset markets such as blockchain-based coins and NFTs, as well as the spread of digital transformation and non-face-to-face financial transactions. He also emphasized that it is time to supplement the system so that retirement pensions and personal pensions can function as means to secure cash flow in old age, contributing to the public’s wealth formation through the capital market.
Ahn Cheol-kyung, President of the Korea Insurance Research Institute, said, “It is urgent to prepare institutional arrangements for the stable implementation of the new international accounting standards (IFRS17) applied to insurance companies from 2023 and the new solvency regime (K-ICS) to be introduced accordingly,” adding, "Policy support should be provided in parallel to seek a foundation for insurance companies to generate stable profits and to improve their financial soundness."
Jo Bong-hyun, Director of IBK Economic Research Institute, mentioned the need for financial strategies that minimize side effects on small and medium-sized enterprises and small business owners during the normalization process of COVID-19 support, which will be in full swing next year. Jo Young-seo of KB Management Research Institute said, “To strengthen the role of finance in line with the global green transition and carbon neutrality, it is necessary to enhance social trust and transparency in domestic green finance and to provide incentives that encourage active participation by financial companies.”
Additionally, Jung Joong-ho, Director of Hana Financial Management Research Institute, emphasized the expansion of fintech’s entry into the financial industry, stating, “Productive competition and innovation should be induced through the supplementation of financial industry licensing and permit systems.”
In this regard, Chairman Go summarized the suggestions from the institute heads into four main points: ▲Mitigating accumulated financial risks during the COVID-19 crisis and maintaining robust financial stability during the domestic and international normalization process ▲Inducing productive innovation and competition in the financial industry amid the spread of non-face-to-face and mobile finance, Big Blur, and other Fourth Industrial Revolution trends ▲Supporting real economic recovery and economic growth by expanding capital flows into next-generation new industries such as digital and green, alongside efforts to restructure existing industries ▲Strengthening inclusive finance such as financial support for low-income groups, vulnerable populations, small business owners, and self-employed individuals, as well as solidifying financial consumer and investor protection.
Chairman Go said, "We will actively reflect the suggestions and follow-up discussions in practical meetings to concretize and prepare financial policies for 2022," adding, "We ask for continued interest and advice so that the Financial Services Commission can accurately recognize reality, establish the right policy direction, and concretize policies."
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