Choo Kyung-ho "540 Trillion Won Policy Finance Investment, Overcoming Crisis as One Team"

3il Seoul Lotte Hotel 'Beomgeumyung New Year Meeting'
Choo Kyung-ho "Macroeconomic Financial Leaders F4 as One Team Cooperation"

Choo Kyung-ho, Deputy Prime Minister for Economic Affairs and Minister of Economy and Finance

[Asia Economy Reporter Song Seung-seop] Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho said on the 3rd, "We promise active support to overcome the crisis through policy finance supply totaling a record 540 trillion won this year."

Deputy Prime Minister Choo Kyung-ho stated this on the 3rd at the 'Pan-Financial New Year's Meeting' held at Lotte Hotel in Jung-gu, Seoul, urging, "Please do your best to strengthen your own crisis response capabilities, such as maintaining the soundness of financial companies and securing loss absorption capacity." He emphasized, "Active support from the financial sector is essential for preparing for the re-leap of our economy after the crisis," and added, "We expect a bold role of finance to secure future economic growth engines and expand the super-gap in strategic industries."

The Pan-Financial New Year's Meeting is a large-scale event hosted annually by financial sector associations, where key figures in the economy and finance gather early each year. Leaders of each sector diagnose the economy for the year and publicly share their New Year's resolutions. Attendees at this event included Deputy Prime Minister Choo Kyung-ho, Financial Services Commission Chairman Kim Ju-hyun, Financial Supervisory Service Governor Lee Bok-hyun, Bank of Korea Governor Lee Ju-yeol, and representatives from six financial associations and financial companies in the industry.

This year's Pan-Financial New Year's Meeting was held again after three years. It was not held in 2021 and last year due to the COVID-19 pandemic and social distancing policies. This was the first time since the Bank Federation's 'Financial Sector New Year's Ceremony' began in 1985 that the New Year's meeting was interrupted.

Deputy Prime Minister Choo warned, "The crisis is still ongoing," adding, "The domestic and international economic and financial conditions surrounding us remain in a state of high uncertainty and volatility." He expressed particular concern, saying, "As the global economic slowdown fully takes hold in the new year, the true pivotal role of finance in overcoming the crisis and achieving a re-leap of our economy is urgently needed."

He continued, "In the rising interest rate period, an active and inclusive role of finance is required to prevent difficulties from worsening for ordinary citizens and small and medium-sized enterprises," and urged, "Please fulfill your fundamental role as the economic lifeline by ensuring smooth funding supply to the real economy, preventing sound companies from falling into crisis due to temporary liquidity shortages."

Regarding real estate project financing (PF) risks, he said, "We will promote bold and swift regulatory easing and tax normalization to ensure a soft landing of the real estate market." However, he also called on the financial sector, saying, "Please join forces with the attitude that the financial sector itself will proactively resolve these issues so that real estate-related financial risks do not materialize or spread."

Deputy Prime Minister Choo also stated, "The financial industry itself must re-leap as a new growth industry." He urged, "Please take the lead in enhancing global competitiveness and creating quality jobs by providing financial services suited to new environmental changes such as digitalization," and promised, "The government will actively support by creating a financial market environment that meets global standards, including improving the separation of banking and commerce system and advancing the capital market."

Deputy Prime Minister Choo concluded his New Year's address by saying, "The four macro-financial policy leaders, the F4 ? including myself, Financial Services Commission Chairman Kim Ju-hyun, Financial Supervisory Service Governor Lee Bok-hyun, and Bank of Korea Governor Lee Ju-yeol ? will work closely together with a one-team spirit to lead the efforts to overcome the crisis."