Kim So-Young, Vice Chairman of the Financial Services Commission, "Proactive Response to Population, Climate, and Technology Changes"

Future Finance Framework Proposed
"Reviewing Financial Policy Tasks from the Perspectives of Mitigation, Adaptation, and Innovation"

The seminar titled "Financial Changes Brought by Future Mega Trends," hosted by the Korea Institute of Finance and sponsored by the Financial Services Commission, was held on the 8th at the Bankers' Hall in Myeongdong, Seoul. So-Young Kim, Vice Chairman of the Financial Services Commission, is delivering the keynote speech. Photo by Younghan Heo younghan@

Kim So-young, Vice Chairman of the Financial Services Commission, stated that the financial industry and government must devise proactive response measures to address trends such as demographic changes, climate change, and technological innovation.

Vice Chairman Kim made these remarks on the 8th at the 'Future Finance Seminar' hosted by the Korea Institute of Finance and sponsored by the Financial Services Commission. He said, “Due to the need for financial authorities to respond swiftly to rapidly changing financial environments, the focus has mainly been on urgent issues,” adding, “Since financial policies can significantly impact structural and macroeconomic changes, a mid- to long-term perspective and policy response are necessary.”

Vice Chairman Kim presented a ‘Future Finance Framework’ aimed at minimizing risks brought by changes and exploring mid- to long-term growth opportunities. Accordingly, the Future Response Finance Task Force (TF) will analyze the impacts of demographic, climate, and technological themes on finance by dividing them into risks and opportunities, and will identify and review future financial policy tasks from three perspectives: mitigation, adaptation, and innovation. This TF was established in April with the participation of financial sector associations, related institutions, and academia to respond to structural changes such as the climate crisis and population decline.

Regarding risks from demographic changes, Vice Chairman Kim analyzed that rising dependency ratios and growth slowdown could lead to stagnation in financial markets and industries. He mentioned the impending entry into a super-aged society and the insufficient cash flow for the elderly, stating, “The financial industry needs to respond to the increasing demand for financial services such as nursing care, medical services, and pensions.” On the other hand, he noted that these changes could be seen as opportunities to pursue innovative policies, such as expanding life-cycle-based products.

Vice Chairman Kim emphasized the need for mitigation policies that promote a rebound in birth rates and an increase in the working-age population through financial support for youth housing, marriage, and childbirth. He also highlighted the necessity of adaptation policies to expand financial safety nets, including pension system improvements for generating cash flow in old age and enhancing the long-term profitability of capital markets.

Regarding climate change, he pointed out that although large-scale funding is required over a long period, the expansion of new investment opportunities is an advantage. He introduced mitigation policies that supply 420 trillion won by 2030 to reduce greenhouse gas emissions and encourage companies’ low-carbon transitions. Alongside the need for sector-specific soundness checks (adaptation policies), he stressed the importance of innovation policies such as activating green loans and supporting climate technology industries.

Finally, on technological innovation, he said that the financial industry must seize opportunities centered on artificial intelligence (AI) and the advancement of fintech (finance + technology). He underscored the need to enhance trust in AI within the financial sector, minimize risks such as data security and accident prevention, and called for regulatory improvements including easing network separation regulations.