Information Exchange on Population Structure and Bank Revenue Structure Issues
Matsuo Tsuji, Executive Director of the Japanese Bankers Association (left), and Taehoon Lee, Executive Director of the Korea Federation of Banks (right), are shaking hands. (Source: Korea Federation of Banks)
On the 5th, the Korea Federation of Banks visited Japan and held a joint seminar with the Japanese Bankers Association on topics such as demographic structure and bank revenue structure.
This seminar was organized with the purpose of exploring the role of the financial industry so that the economies of both countries can secure sustainable growth engines in response to megatrends such as demographic changes and technological innovation. From the Korean side, Executive Director Taehoon Lee of the Korea Federation of Banks and practitioners from 14 member institutions attended, while from the Japanese side, Executive Director Matsuo Tsuji of the Japanese Bankers Association and practitioners from seven member institutions including Mitsui Sumitomo and Mizuho Bank participated.
On this day, the Japanese Bankers Association introduced cases of bank agency operations in Japan under the theme of "Regulation and Environment of Bank Agencies," and both countries exchanged information on current issues related to demographic structure and bank revenue structure.
Shim Yunbo, Director of Hana Financial Research Institute, in a presentation titled "Demographic Changes in Korea and the Role of Finance," emphasized, "Rapid demographic changes centered on low birthrate and aging will affect banks by lowering the stability of funding structures, reducing loan growth trends, and expanding demand for comprehensive asset management," adding, "Financial institutions need to respond by expanding into high-growth markets, strengthening services for emerging customer segments, and expanding social contribution and shared growth finance activities together with the government and corporations."
Mitsui Sumitomo Bank explained Japan’s demographic changes and background, introducing the business of Japanese banks in response to low birthrate and aging through specific cases.
In a presentation on bank revenue structure, Research Fellow Siyeon Lee of the Korea Institute of Finance stated, "Domestic banks currently need to respond to the possibility of profitability decline due to changes in short-term interest rate trends," and added, "In the long term, it is important to establish strategies addressing growth limitations and weakening sustainability in the domestic market caused by population decline and aging."
Based on an analysis of macroeconomic trends in the Japanese banking industry, Mitsui Sumitomo Bank explained the deregulation of the scope of banking business in Japan and the entry of various industries into banking, and presented future directions related to deregulation.
Executive Director Taehoon Lee of the Korea Federation of Banks said, "This seminar was a meaningful opportunity to deeply discuss the challenges faced by the financial industries of both countries and exchange constructive opinions on future development directions," adding, "We hope that the bank associations of both countries will continuously maintain a friendly relationship and become important partners to each other."
Meanwhile, the bank associations of both countries signed a Memorandum of Understanding (MOU) last October to promote green and digital transformation and have held joint seminars. In January of this year, they held a seminar in Korea on Environmental, Social, and Governance (ESG) topics, continuing active exchanges.
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