Financial Services Commission Launches Future Response Finance Task Force to Address Climate Crisis and Population Decline

Formation of Future Response Finance TF... Establishment of Future Finance Promotion Team

The Financial Services Commission announced on the 2nd that it has established a Future Response Finance Task Force (TF) focusing on population, climate, technology, etc., and held an inauguration ceremony chaired by Vice Chairman Kim So-young.

The Future Response Finance TF was formed according to the Financial Services Commission's '2024 Major Work Promotion Plan' to conduct in-depth discussions on the future of finance by preparing regulatory frameworks for new areas such as digital technology and responding to macro and structural changes such as the climate crisis and population decline.

Vice Chairman Kim So-young stated, "Our society is facing unprecedented megatrends such as rapid changes in population structure, climate change, and technological leaps," adding, "These new changes represent a determined future but are a future of known unknowns, where the specific impacts and intensities are difficult to accurately predict." She emphasized the need for systematic analysis through the TF and policy and private sector responses based on this analysis.

The Population TF under the Financial Services Commission plans to identify demographic factors affecting finance and analyze the impact of population changes on our financial system to promote stable growth of the real economy and financial markets despite changes such as population decline and aging. Additionally, to minimize the shocks of population decline on economic growth, financial support measures will be discussed to enable young people and newlyweds to confidently establish families and raise children.

The Climate TF seeks ways to support the achievement of carbon neutrality by 2050 and enhance corporate climate adaptation capabilities from a long-term perspective. Vice Chairman Kim emphasized once again the implementation of financial support expansion measures to respond to the climate crisis, including financial support for climate technologies essential for achieving carbon neutrality and acting as new growth engines, strengthening the role of financial institutions in low-carbon process transitions, and expanding investments in renewable energy.

The Technology TF aims to advance the financial industry by enhancing the competitiveness of financial companies and improving consumer convenience through the convergence of advanced digital technologies such as blockchain and AI with finance. Vice Chairman Kim stated that a regulatory framework will also be established to prevent risks such as financial stability and consumer protection arising from the use of new technologies.

Meanwhile, the Financial Services Commission has also established the Future Finance Promotion Group to support the operation of the TF. Vice Chairman Kim explained, "We plan to compile discussions from each field and hold public seminars and other public discourse processes to gather and discuss opinions more broadly." She added, "Furthermore, amid concerns about low growth due to changes in population structure, we will strengthen cooperation with overseas financial authorities to support the overseas expansion of financial companies and enterprises to secure new growth momentum, as well as global policy coordination on climate change and technological changes."