Jo Yong-byeong, Chairman of the Korea Federation of Banks, 2025 New Year's Address
Jo Yong-byeong, Chairman of the Korea Federation of Banks, stated on the 31st, "The new year is expected to be more challenging than ever before," adding, "As difficulties intensify, the role of finance will become even more significant. The bold mindset of financial professionals is urgently needed. In such times, I believe the banking sector should pursue healing, stability, and change in the new year."
In his New Year's address released that day, Chairman Jo said, "With the change of administration in the United States and large-scale wars continuing in Europe and the Middle East, external uncertainties are expected to reach their peak. The difficulties faced by export companies will worsen, and domestic demand recovery does not seem easy, making it highly likely that the financial sector will also face tough times."
Chairman Jo added, "Although recent political instability has increased volatility in the foreign exchange and financial markets, the banking sector is closely cooperating with financial authorities
and carefully monitoring market conditions," emphasizing, "I would like to assure you that we are thoroughly preparing to ensure the financial system operates stably against any shocks."
He continued regarding this year's achievements, "The banking sector has remained a steadfast pillar of support for the public by implementing the largest-ever livelihood finance support plan amounting to 2.1 trillion won, and has been striving to establish a sustainable support system," adding, "I believe this outcome was achieved through the united efforts of banks, financial authorities, and the Korea Federation of Banks' executives and staff."
Chairman Jo also identified healing, stability, and change as goals for the new year, stating, "We must work to heal the livelihood economy ecosystem. The real economy is facing severe difficulties due to the trends of high exchange rates, high interest rates, and high inflation, compounded by recent turmoil." He emphasized, "Starting this year, the banking sector plans to systematically and continuously support vulnerable sectors, including small business owners, through tailored debt restructuring, low-interest and ultra-long-term installment repayments for closed businesses, win-win guarantees and loans, bank consulting, and non-financial platform services."
He further noted, "The most important role of banks is to maintain an unwavering financial system so that all citizens can continue their peaceful daily lives," adding, "To this end, banks must strictly manage soundness and liquidity. Especially, to resolve the immediate challenge of stabilizing the foreign exchange market, banks must closely cooperate with financial authorities and pool wisdom to fulfill their role as a breakwater for the economy."
Regarding demographic changes, Chairman Jo said, "In the midst of three major changes?population, climate, and technological environment, banks must first accept change and innovate to continue growing." He added, "The Korea Federation of Banks is participating as a co-leader of the Low Birthrate Overcoming Promotion Headquarters on behalf of the financial sector to respond to demographic changes. We will deeply consider how finance should respond to changes in population structure and prepare practical and effective contribution plans to overcome the low birthrate issue."
On responding to changes in the technological environment, he stated, "Banks must respond to the changing environment by strengthening internal controls and focusing on consumer protection management," and added, "The Korea Federation of Banks will actively support ensuring that the accountability framework, officially introduced this year, becomes firmly established as the banks' management philosophy."
Chairman Jo said, "Winston Churchill once said, 'A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty.' I believe that if we face the current difficulties calmly with hope rather than pessimism, we will be able to find new opportunities."
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