Capital Market Research Institute's Remarks at the 'Aging and Capital Markets' Conference
Yoon-Soo Lee, Standing Commissioner of the Financial Services Commission's Securities and Futures Commission, is delivering a congratulatory speech at the 27th anniversary conference "Population Aging and Capital Markets" hosted by the Korea Capital Market Institute at the Chosun Hotel in Seoul on the 11th. Photo by Min-Young Cha
Yoon-Soo Lee, a standing member of the Financial Services Commission's Securities and Futures Commission, said on the 11th, "I believe it is time to seek concrete measures to enhance adaptability to an aging society, where almost everything across economic and social sectors is undergoing transformation, not only through demographic responses such as increasing the birth rate."
At the 'Population Aging and Capital Markets' conference held by the Korea Capital Market Institute at the Chosun Hotel in Seoul on the morning of the same day, Commissioner Lee emphasized that the aging issue is not a new topic, stating, "Recently, academia and international organizations have been actively discussing 'shrinkonomics,' highlighting that the aging issue is not a new subject."
Commissioner Lee also said, "Our financial industry and financial policies are no exception," adding, "This year, the Financial Services Commission launched the 'Future Response Finance Task Force (TF)' in April. To share a few points, considering the significant variable of aging, I think we need to advance wealth management strategies that go beyond standardized approaches."
Instead of passive asset management like now, the financial investment industry should actively provide advisory and proxy services regarding wealth throughout the customer's life cycle, including debt and tax savings. He also called for institutional upgrades in various fields such as trust businesses, retirement pensions, personal pensions, and housing pensions.
Commissioner Lee stated, "The government will also actively pursue recently announced trust business innovation plans and private pension reforms," and urged, "I ask the financial investment industry to make efforts toward new growth products and service innovations."
In fact, overseas capital markets are seeing an increase in funds and venture investments related to elderly-friendly businesses such as healthcare and robotics. Monthly dividend-paying financial investment products, such as exchange-traded funds (ETFs), are also popular.
Commissioner Lee said, "We also hope to see more innovative financial investment services through the combination with digital health and nursing industries," adding, "Since demographic changes could lead to deterioration in the profitability or soundness of the financial industry, the government will continue efforts on 'corporate value-up policies' so that companies listed on our stock market can be recognized for their true value and increase investment incentives."
This conference was organized to examine how Korea's aging population structure affects household savings and asset structure choices. It also discusses the roles that financial and capital markets need to play to accommodate changes and mitigate shocks. In particular, there was a session to directly hear about financial reform policy cases currently underway in Japan, which is facing population aging first.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
