Financial Supervisory Service Holds High-Level Virtual Meeting with Five Asia-Pacific Countries

[Asia Economy Reporter Song Seung-seop] On the 3rd, the Financial Supervisory Service (FSS) participated remotely in a high-level meeting of financial supervisory authorities from five Asia-Pacific countries.

This meeting was arranged at the proposal of the Indonesia Financial Services Authority to commemorate the ‘G20 Summit Bali Meeting’ scheduled for October. Attendees included Lee Jin-seok, Deputy Governor of the FSS, the head of the Indonesia Financial Services Authority, the head of the Australian Prudential Regulation Authority, a risk executive from China’s Banking and Insurance Regulatory Commission, and the Director-General of the Comprehensive Policy Bureau of Japan’s Financial Services Agency.

The participants discussed various global financial issues such as changes in the economic and financial environment after the COVID-19 pandemic, responses to climate risks, and the expansion of digital platforms and big tech. Deputy Governor Lee mentioned Korea’s financial issues including the increase in private debt, the expansion of financial market volatility, and the growing need for a regulatory framework for virtual assets. In this regard, he explained efforts to monitor debt deterioration, strengthen checks on liquidity status and capital inflows and outflows in the non-bank sector, and establish a regulatory framework for virtual assets.

Additionally, the key challenges for Korean finance were identified as managing soundness, including securing financial companies’ loss absorption capacity, and the new expansion of finance. In particular, the need for cooperation among supervisory authorities was emphasized to improve ESG (Environmental, Social, and Governance) evaluation and disclosure, and to establish a digital financial regulatory framework.

The supervisory authorities of the five countries agreed on the necessity of close cooperation to respond to changes in the financial sector due to technological advancements. To this end, they agreed to actively share experiences and information with each other and to strengthen cooperation systems on common issues.