Kim So-young, Vice Chairman of the Financial Services Commission, "Now is the Golden Time for Financial Industry Advancement"

Keynote Speech at the Seminar on "Future Changes and Financial Growth Strategies"

Kim So-young, Vice Chairman of the Financial Services Commission, stated, “If we prepare and respond thoroughly, it can be an opportunity for the financial industry to advance,” adding, “This moment is the golden time to prepare for future responses.”

Vice Chairman Kim made these remarks during the keynote speech at the Korea Institute of Finance’s seminar on “Future Changes and Financial Growth Strategies” held on the 27th at the International Conference Room of the Bankers’ Hall in Jung-gu, Seoul. He noted that Korea’s financial sector has supported real economy growth through quantitative expansion and has steadily developed and grown alongside economic growth. He emphasized that future change factors demand a more proactive role from finance and that the financial industry now needs new strategies to secure competitiveness.

Vice Chairman Kim proposed directions for expanding the role of finance and strengthening financial competitiveness in response to future changes from the perspectives of mitigation, adaptation, and innovation. The mitigation strategy involves using finance to slow the pace of change or alleviate the impact of change shocks. He announced plans to raise the yield on the Youth Leap Account to a maximum of 9.5% within this year, activate retirement support insurance services, and concentrate policy financial funds on five key strategic sectors (such as advanced strategic industries and new industries).

An on-site inspection meeting to eradicate illegal private financing was held on the 13th at the Seoul Fair Trade Comprehensive Counseling Center. Kim So-young, Vice Chairman of the Financial Services Commission, is delivering the opening remarks.

The adaptation strategy is aimed at advancing existing finance in response to future changes. Financial companies should identify specialized sectors with high potential, such as personal asset management and green finance, develop growth strategies, and enhance risk assessment and management systems. In this process, they should also review organizational and human resource management strategies. Accordingly, the government plans to review and specify institutional improvements, expansion of shared infrastructure, advancement of the financial investment industry, and digital financial security legislation within this year.

The innovation strategy involves expanding and diversifying the scope, systems, and participants of the financial industry to broaden the foundation for medium- to long-term growth. Efforts should continue to activate financial-nonfinancial cooperation models, such as linking insurance and medical services, and to improve systems related to entry and exit in the financial sector. It is also necessary to expand the financial market area through financial internationalization and prepare for financial infrastructure innovation. Related initiatives under review include institutional improvements in payment services, reform of the financial company outsourcing system, institutionalization of token securities (STO) and fractional investment platforms, and the second-phase virtual asset legislation.

Vice Chairman Kim urged, “In the process of setting and implementing the direction finance should take to utilize upcoming future changes as growth opportunities, I ask all financial authorities, market participants, and experts to make efforts.”