[2025 Financial Forum] FSC Chairman Kim Byunghwan: "Structural Reform Needed to Address Low Growth"

Structural Reform Needed to Overcome Low Growth
Resolving Conflicts Will Determine the Path of Growth
"Innovation and Inclusion" Are Key in Financial Policy

Kim Byunghwan, Chairman of the Financial Services Commission, is delivering a congratulatory speech at the '2025 Asia Financial Forum' hosted by Asia Economy at the Chosun Hotel in Jung-gu, Seoul on the 21st. May 21, 2025. Photo by Kang Jinhyung

Good morning, I am Kim Byunghwan, Chairman of the Financial Services Commission. First of all, I would like to sincerely congratulate you on the opening of the '2025 Asia Financial Forum' hosted by Asia Economy. I would also like to express my gratitude to CEO Jang Beomsik and all those involved in preparing today's event. While I cannot mention everyone who is here for this meaningful occasion, I warmly welcome and am pleased to see you all.

The theme of today's forum is 'The Trap of Low Growth: Leap Forward for the Korean Economy and Finance.' This will be an opportunity to discuss how our economy can overcome the trend of low growth, how our financial sector can contribute to overcoming low growth, and what opportunities we can find in this process. Economies that have matured, like the Korean economy, almost without exception enter a phase of low growth. However, depending on how we respond, we can slow down this trend, or even reverse it.

The path is clear: increasing the supply of labor, increasing capital stock, or improving productivity. However, in a mature economy, it is not easy to implement any one of these. This is why structural reform is necessary. Structural reform involves changing the existing order, which inevitably brings conflict. Whether such conflict can be resolved depends on the sense of solidarity within that economy, nation, or community.

Since the launch of the Trump administration in the United States, or perhaps even before that, the global economic order has also been undergoing a period of transformation. Various geopolitical and geoeconomic factors are at play, but fundamentally, low growth and polarization in advanced economies are at the root. Whether we can resolve conflicts, both internationally and domestically, will determine our future path of growth.

In pursuing financial policy, I keep 'innovation and inclusion' in mind. Innovation that does not embrace difficult aspects is not sustainable, and simply embracing without innovating cannot lead to growth. In fact, we already know the solutions to overcoming low growth.

However, in order to take this path, we face difficulties in resolving conflicts and achieving integration and solidarity. I hope that today's forum will serve as an opportunity to gather everyone's wisdom to overcome these challenges. Once again, congratulations on the opening of the forum. Thank you.