Financial Leaders: "Internal and External Uncertainties Persist... Finance More Crucial Than Ever" (Comprehensive)

Pan-Financial New Year’s Meeting Held on January 5
Financial Leaders Emphasize: "Finance Is Crucial for Economic Recovery"

On January 5th, at Lotte Hotel in Jung-gu, Seoul, key figures from the political, governmental, and financial sectors, including Eogwon Lee, Chairman of the Financial Services Commission, Chanjin Lee, Governor of the Financial Supervisory Service, and Changyong Lee, Governor of the Bank of Korea, are posing for a commemorative photo at the "2026 Pan-Financial New Year's Meeting." 2026.1.5 Photo by Kang Jinhyung

The heads of South Korea's financial authorities, who oversee the nation's financial policy, projected that the challenging domestic and international environment surrounding the country will persist this year, just as it did last year. They unanimously stressed that finance must play a more crucial role than ever in driving economic recovery.

Pan-Financial New Year’s Meeting Brings Together Financial Leaders

On the afternoon of January 5, at the 'Pan-Financial New Year's Meeting' held at Lotte Hotel in Seoul, Deputy Prime Minister and Minister of Economy and Finance Koo Yoonchul (represented by the First Vice Minister) stated, "The domestic stock market surpassed the 4,000 mark for the first time ever, demonstrating global trust in our economy. However, the domestic and international environment remains challenging this year as well." He explained, "Externally, uncertainties persist due to major countries' monetary policies and the impact of U.S. tariffs. Internally, we face challenges such as a decline in potential growth rate and polarization."

He continued, "This year must become the first year of a major leap forward for the Korean economy by reversing the decline in the potential growth rate and overcoming polarization. In this process, the role of finance is more important than ever."

Deputy Prime Minister Koo first announced, "We will launch the supply of the National Growth Fund, amounting to 30 trillion won annually, to invest in new industries such as artificial intelligence (AI) and strengthen tax incentives for venture and innovation capital, including Business Development Companies (BDC) and KOSDAQ Venture Funds, through the full-scale implementation of productive finance."

He added, "We will support the growth of small and venture businesses through the expansion of win-win financial programs and activate social solidarity finance for cooperatives and social enterprises. We will also expand low-interest policy finance for the public, such as the pilot introduction of the 4.5% Smile Finance youth product." He stated, "In addition to eradicating stock price manipulation, we will strengthen tax benefits for long-term investment in domestic stocks and implement a separate low tax rate for dividend income."

Lee Changyong, Governor of the Bank of Korea, also commented, "We expect the environment surrounding the Korean economy to remain difficult this year. There are various risk factors related to the trade environment and the fiscal policies of major countries." He forecasted, "Although we expect a higher growth rate than last year, the so-called 'K-shaped recovery'-with significant disparities between sectors-will likely result in a gap between actual economic conditions and public sentiment."

He further emphasized, "The trend of currency depreciation that is disconnected from economic fundamentals calls for not only strengthening mid- to long-term industrial competitiveness and improving capital market systems, but also close cooperation among related institutions, including the government and the central bank."

Lee Chan-jin, Governor of the Financial Supervisory Service (from left), Lee Chang-yong, Governor of the Bank of Korea, Koo Yoon-chul, Deputy Prime Minister and Minister of Economy and Finance, and Lee Ok-won, Chairman of the Financial Services Commission.

Chairman of the Financial Services Commission: "Focusing on Productive Finance"

Lee Okwon, Chairman of the Financial Services Commission, predicted that finance will make a significant contribution to economic growth through productive finance. Chairman Lee stated, "This year must be the first year of a major leap forward for the nation and for growth for all. I ask that financial professionals approach their work with the spirit of Baekrak Sangma, recognizing and nurturing talent to lead Korea’s economic leap forward."

Chairman Lee declared that this year would see tangible results from productive finance, saying, "Through the National Growth Fund, which unites the government, finance, and industry, we will boldly invest in high-tech industries that will shape the future of the Korean economy." He also pledged to support the financial industry’s own development into an AI-based high-tech sector and to foster a healthy digital asset ecosystem. He emphasized the importance of revitalizing the capital market, strengthening trust in the KOSDAQ market, and establishing shareholder protection principles.

For inclusive finance, he announced plans to reform policy-based financial products for the public and institutionalize financial companies’ contributions. He added, "We will improve debt adjustment and collection practices so that finance can truly support people’s lives and stand with them in difficult times." He also promised to closely monitor potential risks such as household debt and real estate project financing (PF), and to proactively implement prepared market stabilization measures to ensure financial stability.

Lee Chanjin, Governor of the Financial Supervisory Service, emphasized the protection of financial consumers. He said, "I ask that you shift the paradigm of financial consumer protection from 'post-facto relief for a minority of victims' to 'preventive financial consumer protection.'" He added, "I hope you will establish inclusive finance as a sustainable management culture rather than a one-time support, and pay special attention to activating productive finance, including expanding the supply of venture capital."