[2025 Financial Forum] The Future of Finance: Seeking a Path Between Regulation and Innovation

Finance Should Support and Grow with the Industrial Ecosystem
Virtuous Cycle Structure Needed
Customized Approach Is Key for Internal Controls
Potential of AI Utilization Also in Focus
Debate Over Timing of AI Basic Act Implementation
Competitiveness at Risk If Regulation Outpaces Technology
Family Trusts and STOs to Reshape the Trust Industry
Asset Management Solutions for an Aging Society
Digital Assets as a New Path Forward
Seeking Solutions Amid Institutional Gaps and Global Cases

Changkuk Ahn, Director of the Financial Industry Bureau at the Financial Services Commission, is attending the "2025 Asia Financial Forum" hosted by Asia Economy at the Westin Chosun Seoul in Jung-gu, Seoul, on the 21st, delivering a special lecture on the topic "Sustainable Development Directions of Korea's Financial Industry including Banking and Insurance."

At the "2025 Asia Financial Forum" hosted by Asia Economy at The Westin Chosun Seoul in Jung-gu, Seoul on May 21, experts from various fields took the stage as speakers to engage in in-depth discussions on a wide range of current issues. Topics included sustainable development strategies for Korea's financial industry, response measures to changes in the artificial intelligence (AI) regulatory environment, the potential for utilizing blockchain-based virtual assets, new growth opportunities in the trust industry, and innovations in internal controls to prevent financial accidents.

Changkuk Ahn, Director of the Financial Industry Bureau at the Financial Services Commission, emphasized that regulations should not hinder new growth industries. Citing the UK's "Red Flag Act" as an example, he pointed out that regulations that obstruct industrial innovation can undermine national competitiveness. Director Ahn stressed that finance should support the high-tech industrial ecosystem through regulatory innovation. He stated, "Finance and fiscal resources should move toward investing together in new growth sectors such as AI," and added, "Finance must foster innovative companies in new growth areas, and the capital generated from these companies should create a virtuous cycle that develops the industrial ecosystem."

Yoon Yeohyun, partner at Samil PwC, attended the '2025 Asian Financial Forum' held on the 21st at The Westin Chosun Seoul in Jung-gu, Seoul, and gave a lecture on the topic of 'Proactive Prevention and Response to Financial Incidents Following the Implementation of Accountability Structures.'

There were also suggestions that caution is needed as internal control mechanisms introduced by financial institutions to prevent financial incidents are becoming increasingly standardized. Yoon Yeohyun, Partner at Samil PwC, emphasized the need for a "customized" approach tailored to corporate culture and risk characteristics rather than uniform controls. He stated, "To enhance the effectiveness of internal controls, it is important to link business attributes, risks, and internal controls," and suggested that "AI and data analytics can also be used to improve the effectiveness of internal controls."

ByungHo Seo, Head of Financial Innovation Research at the Korea Institute of Finance, attended the "2025 Asian Financial Forum" held on the 21st at the Westin Chosun Seoul in Jung-gu, Seoul, and gave a lecture on the topic of "Changes in AI Regulatory Environment and Response Strategies for Financial Companies."

Regarding changes in AI-related regulations, ByungHo Seo, Head of Financial Innovation Research at the Korea Institute of Finance, expressed a critical view. He argued that the implementation of the Artificial Intelligence Basic Act is too premature compared to the pace of AI technology development, raising concerns about a weakening of global competitiveness. He analyzed that ambiguous regulations could impose excessive costs and legal risks on financial institutions. Director Seo proposed a grace period for implementation, a practical approach to regulation, and the need for financial institutions to improve their governance structures.

Youngpyo Oh, Executive Director of Heritage Solution Division at Shin Young Securities, is giving a lecture on the topic "How to Strategically Approach Innovation in the Trust Industry" at the "2025 Asia Financial Forum" hosted by Asia Economy on the 21st at The Westin Chosun Seoul in Jung-gu, Seoul.

Youngpyo Oh, Executive Director at Shin Young Securities, presented directions for innovation in the trust industry. He called for the revitalization of "family trusts" and "business trusts" in preparation for an aging society. Family trusts are gaining attention as an alternative that can reduce risks in inheritance and gift processes, and enable asset preservation and value transfer. He also stated that using STOs (security token offerings) to entrust businesses rather than assets could open up new markets. He further suggested that financial institutions should collaborate with professional sectors to establish trusts as a core tool for asset management.

Dong Ki, partner at Deloitte Consulting Korea, is attending the '2025 Asia Financial Forum' hosted by Asia Economy on the 21st at the Westin Chosun Seoul in Jung-gu, Seoul, delivering a special lecture on the topic of 'Trump 2.0 Era, Global Trends of Virtual Assets and Suggestions for Virtual Asset-Based Commercialization.'

Dong Ki, Partner at Deloitte Consulting, analyzed the potential and challenges of virtual assets. He emphasized that attention should be paid to digital assets to overcome low growth, and that blockchain-based tokenization technology will become a core element of future finance. However, he pointed out that the domestic institutional foundation is lacking, and that there have been cases where STO legislation has failed. He stressed that, as global companies are adopting Bitcoin as a strategic asset, Korea also needs more active legislation and regulatory reform.