"M&A and Industrial Value Chains... Finance's 'Selection Function' Is the Key to Productive Finance"

Korean Academy of Management Fall Joint Academic Conference
Discussing Strategies to Promote Productive Finance

"Globally, we are witnessing the US-China power struggle, the artificial intelligence (AI) technology race, and global trade wars, while domestically, issues such as polarization, low birth rates, and an aging population are at the forefront. It is time to reflect on whether finance is truly fulfilling its original role in our economy." (Ahn Changguk, Standing Commissioner of the Financial Services Commission)

On December 5, at the "2025 Korean Academy of Management Fall Joint Academic Conference," co-hosted by the Korean Academy of Management and the Korea Product Safety Society, participants shared concerns and alternatives regarding "Korean-style productive finance" and the "activation of the startup and innovation ecosystem." Attendees reached a consensus on the need for finance to restore its "selection function"-that is, to determine where and how to allocate limited capital. They also emphasized the necessity of establishing a new value chain that supplies capital to startups, innovative companies, and strategic industries such as AI.

On the 5th, Kwak Wonjun, President of the Korean Academy of Management, delivered a welcoming speech at the "2025 Korean Academy of Management Autumn Joint Academic Conference" held at COEX in Samseong-dong, Gangnam-gu, Seoul.

The event, held at COEX in Gangnam-gu, Seoul, brought together four startup-related academic societies: the Korea Entrepreneurship Society, the Korea Career and Startup Management Society, the Korea Venture Startup Society, and the Society of Entrepreneurship. It served as a platform to share research achievements related to startups, innovation, and productive finance. In his welcoming speech, Kwak Wonjun, President of the Korean Academy of Management, said, "I sincerely thank all the researchers who prepared a variety of sessions and all participants who contributed to academic exchange," adding, "I hope this will be a meaningful opportunity to explore new directions in startups and innovation through knowledge sharing and in-depth discussion."

"Productive Finance Should Lead to AI, Strategic Industries, and M&A"

In his keynote speech, Standing Commissioner Ahn cited focused investment in strategic industries such as AI, the provision of scale-up (high-growth stage) funding, and the activation of mergers and acquisitions (M&A) as measures for productive finance. He stated, "The core of productive finance can be seen as the government making concentrated capital investments and focusing policy capabilities on specific areas such as AI," and added, "We need to share the needs of the startup and investment ecosystem and seek new and appropriate points of balance."

He particularly stressed the importance of a growth ladder that links policy funds, such as the Korea Fund of Funds, with private capital. Standing Commissioner Ahn said, "It is important to provide support so that companies whose value rises to the 100 billion to 200 billion won level through Fund of Funds support in the uncertain research and development (R&D) stage can then grow to the 1 trillion to 2 trillion won level," adding, "What matters is not the sheer size of productive finance-over 150 trillion won-but the creation of a value chain within the ecosystem."

Kim Hankyu, a member of the Democratic Party of Korea, emphasized in a video congratulatory message at the "2025 Fall Joint Academic Conference of the Korean Academic Society of Business Administration" that "for the actual performance of productive finance, a financial environment where funds are supplied at the appropriate time must be established."

During the Q&A session, in response to a question about concerns over China’s industrial rise and the possibility of surpassing Korea, Standing Commissioner Ahn said, "Voluntary M&A among companies needs to become more active. Since new funding channels are necessary for growth, it is regrettable that there is no policy support for M&A." Regarding the ESG (Environmental, Social, and Governance) trend, he also outlined tasks for startups. He stated, "If ESG-related disclosures become more widespread, especially in Europe, it will be necessary to invest in companies capable of energy savings," and added, "Domestic financial authorities will build infrastructure related to disclosures, while environmental and industrial authorities will prepare infrastructure such as facilities."

"A Fair Financial Ecosystem Is Needed to Support the Growth of Innovative Companies"

The political and industrial sectors also emphasized the importance of productive finance in their congratulatory remarks. Kim Hankyu, a member of the Democratic Party of Korea (co-chair of the National Assembly Startup Support Study Group 'Unicorn Farm'), said, "Productive finance is a key foundation for innovative companies to commercialize technology, secure market competitiveness, and achieve growth. For actual results, a financial environment where funds are supplied at the appropriate time must be established. I hope today’s event will serve as a venue to discuss legislation and systems for activating alternative investments to support the growth and global expansion of innovative companies, and to create a fair and transparent financial ecosystem."

Ahn Changguk, Standing Commissioner of the Financial Services Commission, is delivering the keynote speech at the 2025 Korean Academy of Management Fall Joint Academic Conference.

Ha Taekyung, President of the Insurance Research Institute, said, "Recently, as the Insurance Research Institute developed its own AI solutions and began considering commercialization, I have come to deeply empathize with the trial and error faced by young entrepreneurs attempting startups," adding, "The new administration is accurately reflecting the changes of our era by emphasizing AI and productive finance. The insurance sector will also continue to seek innovation and opportunities in asset management."

Meanwhile, at the event, the Korean Academy of Management also held its Management Grand Prize award ceremony. Jeon Yoonjong, President of the Korea Institute for Advancement of Technology Planning and Evaluation, was honored with the award. Lee Changwon, Professor at Hanyang University and chair of the judging committee, explained, "He made significant contributions to strengthening the competitiveness of our industry through strategic business planning and evaluation, as well as responsible negotiations," adding, "His outstanding management capabilities and responsible leadership were highly valued."