Opening Address at the G20 Global Financial Stability Conference
On September 3, First Vice Minister of Economy and Finance Lee Hyungil stated, "The digital transformation of finance, including artificial intelligence (AI) and stablecoins, is raising expectations for innovation in financial markets and monetary systems." However, he also cautioned, "We must be wary of the fact that advances in digital technology can lead to unexpected systemic risks."
Vice Minister Lee made these remarks during his opening address at the '2025 G20 Global Financial Stability Conference' held at The Plaza Hotel in Jung-gu, Seoul, on this day. He noted that, amid heightened volatility in financial markets and a potential shake-up in the international financial order, "structural challenges are emerging within the financial system," emphasizing the need to closely monitor the rapid progress of digital transformation.
He further explained, "Non-bank financial institutions (NBFIs) exhibit diversified investment strategies and behaviors, while also reacting sensitively to economic and market fluctuations." He added, "This can lead to increased volatility and liquidity tightening during crises, so it is necessary to review and supplement the existing bank-centered financial stability framework." He also mentioned that the continued high interest rates are deepening debt vulnerabilities in developing countries, which could become a source of volatility in international financial markets, highlighting the need for cooperative efforts from the international community.
Vice Minister Lee stressed, "Supply chain restructuring, trade conflicts, and digital transformation are acting as pressures for change across the international economic and financial system, including the trade order and monetary system." He added, "We must once again assess the signs of change, establish fundamental principles for response, and seek ways to enhance international cooperation."
He went on to say, "Through experiences such as the global financial crisis and the pandemic crisis, we have learned that neither enhancing financial stability nor creating new growth opportunities through innovation is possible without global cooperation." He concluded, "The uncertainties and waves of structural transformation facing the world can also be wisely navigated through multilateral cooperation and policy coordination."
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