Meeting Held with Seven Research Institutes, Including Korea Institute of Finance and Korea Capital Market Institute
Lee Chanjin, Governor of the Financial Supervisory Service, met with the heads of major domestic research institutes and asked them to suggest the direction the financial sector should take to promote productive finance.
The Financial Supervisory Service announced that on September 23, Lee held a meeting at the Korea Financial Investment Association in Yeouido, Seoul, with the heads of seven domestic research institutes, including the Korea Institute of Finance and the Korea Capital Market Institute.
During the meeting, Lee stated, "The Korean economy is currently facing an entrenched period of low growth, and it is a time when the financial sector must play an active role in driving genuine growth. The financial sector should serve as the lifeblood of the economy by selectively supplying funds to highly productive sectors, while also helping to address social and economic issues arising from an aging population."
He added, "The Financial Supervisory Service will communicate with the financial sector and improve related systems so that funds currently concentrated in real estate can be redirected to innovative growth sectors, in line with the unique investment risk preferences and risk tolerance of banks, securities firms, and insurers. The financial sector should also move away from stability-oriented business practices and instead manage risks at each stage of corporate growth, ensuring that sufficient funds are supplied in a timely manner."
He further commented, "The financial sector must be able to connect the changing financial demands brought about by aging with consumption, investment, and welfare, thereby enhancing both growth and well-being. To this end, the financial sector should mobilize funds held by the elderly in real estate and channel them into consumption or investment through a variety of pension and trust products."
Finally, he requested, "As think tanks for the Korean economy and finance, research institutes should provide long-term perspectives and suggest the direction the financial sector should pursue."
In response, Lee Hangyong, President of the Korea Institute of Finance, said, "In addition to demographic changes, financial companies must play an active role in addressing issues such as climate change and the decline of local communities. Considering the population decline, a real estate-centered financial system is not sustainable in the long term and may negatively impact the competitiveness and soundness of financial companies."
Kim Sewan, President of the Korea Capital Market Institute, stated, "Capital market innovation, such as improving corporate governance and advancing corporate legal systems, is essential to expand the growth engine of our economy and realize the Korea Premium in the stock market. It is necessary to expand the venture capital ecosystem and strengthen funding support for innovative companies such as ventures and startups, in order to secure new growth engines and enhance global competitiveness in advanced technologies."
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