[2024 Financial Forum] Kim Juhyun: "Japan's Economic Dynamism, Result of 10 Years of Efforts by Companies, Institutions, and Government"

"Japan, Wage Increase and End of Negative Interest Rates... Regaining Dynamism"
"Japanese Capital Market, Long-term Efforts Bear Fruit with Stewardship Code and ISA Tax Benefits Strengthening"
"Our Value-up Policy Also Pursued Continuously and Consistently"

"The Japanese economy is regaining its dynamism as a result of efforts by companies, exchanges, and the government over the past decade."

Kim Ju-hyun, Chairman of the Financial Services Commission, made this assessment in his congratulatory speech at the '13th Asia Financial Forum' held on the morning of the 9th at the Westin Chosun Hotel in Jung-gu, Seoul, under the theme "The Secret to the Revival of the Japanese Stock Market, Awakening Japanese Economy."

Kim Ju-hyun, Chairman of the Financial Services Commission, is delivering a congratulatory speech at the '2024 Asia Financial Forum' held on the 9th at the Chosun Hotel in Jung-gu, Seoul. Photo by Kang Jin-hyung aymsdream@

Chairman Kim stated, "Despite Japan's long-standing traditions and prominent global companies, the economy struggled to regain vitality after the bubble burst in the 1990s due to a closed corporate management culture, aging population, and deflation. However, recently, the Japanese economy is showing signs of regaining dynamism with wage increases, the Bank of Japan ending its negative interest rate policy, and the Nikkei 225 reaching new highs."

He emphasized that the recent dynamism of the Japanese economy is the result of joint efforts by companies, institutions, and the government. Chairman Kim explained, "These changes in the Japanese economy may seem sudden, but in fact, they are the fruits of continuous efforts by Japanese companies, exchanges, and the government. From the capital market perspective, Japan began implementing the Stewardship Code and corporate governance standards 10 years ago, and has strengthened incentives for enhancing corporate value and stock investment over a long period, including last year's Tokyo Stock Exchange initiatives and the enhanced tax benefits for ISA (Nippon ISA) earlier this year."

In response, the Financial Services Commission also announced that it will consistently promote the 'Value-Up Initiative' in cooperation with listed companies, exchanges, and institutional investors. The financial authorities unveiled a value-up program aimed at raising the value of Korean companies to international standards. The core idea is to have listed companies directly evaluate their value and transparently present future value enhancement strategies to the market, thereby receiving proper evaluation from investors.

Chairman Kim introduced the Kurinji, a shrub native to southern India that takes 12 years of preparation before blooming, saying, "Our stock market's 'Value-Up Initiative' will also require a considerable amount of time before bearing fruit." He added, "The government will continue to pursue value-up policies consistently and cooperatively with listed companies, exchanges, and institutional investors with the mindset of making the Kurinji flower."