[New Year Interview] "AI Will Reshape the Financial Market... The Gap Will Widen Without Innovation"

'Asking the Path of the Economy and Finance in 2026' Relay Interview
2. Junghoon Park, CEO of Woori Financial Research Institute
"The Financial Sector Must Accelerate AI Adoption"
"More Opportunities for Those Proficient in AI"
"Woori Financia

Jung-Hoon Park, CEO of Woori Financial Research Institute, is being interviewed by The Asia Business Daily at Woori Financial Digital Tower on Sogong-ro, Seoul. Photo by Jo Yongjun

"Artificial intelligence (AI) is reshaping the financial market. The opportunity gap between those who are proficient in AI and those who are not will continue to widen."

"The Financial Sector Must Accelerate AI Adoption... The Gap Will Widen"

Jung-Hoon Park, CEO of Woori Financial Research Institute, emphasized in a New Year's interview with The Asia Business Daily that "the advancement of AI is causing dramatic changes even in the financial market," and stressed that "the adoption of AI by financial companies is a mission that must be successfully accomplished to survive in a rapidly changing world."

According to Evident, a UK-based research firm that evaluates the use of AI by global financial companies, the number of AI use cases among the world's top 50 financial groups announced in June last year reached 173, a nearly threefold increase from the previous year. The number of related patents also rose by 33%. The application of AI in the financial sector is expanding into virtually all areas, from automating documents and improving work efficiency to fraud detection systems (FDS), customer consultation, and asset management.

Park argued, "For finance to advance through AI, we must start with a 'shift in perception' that recognizes AI not just as a tool for operational efficiency, but as a core element that can restructure the way financial business operates." He added, "Based on this perception, we must consistently strive to deeply integrate AI into financial business, thereby enhancing productivity, personalized services, and innovation capabilities."

Regarding concerns that AI will replace all human jobs, Park said there is little need for excessive worry. "So far, it is more accurate to say that AI is reshaping the way work is done rather than simply replacing jobs," he said. "AI is taking over repetitive and standardized tasks, while those responsible for such work are being freed up to focus on higher-value roles." However, he noted, "The opportunity gap between those proficient in AI and those who are not is widening," and explained, "To minimize this gap, programs that improve AI literacy and support its use need to become more widespread."

Woori Financial Group has also set AI transformation (AX) as a company-wide goal. Park stated, "This year, Woori Financial Group will achieve AX results in key areas such as screening, consultation, and internal control," and mentioned, "We plan to expand new digital businesses based on our data and AI capabilities to strengthen our future competitiveness."

The Only Private Financial Company to Join the Government's 'Productive Finance Task Force'

This year, Woori Financial Group will actively pursue the government's key financial policies, including productive finance and inclusive finance. In particular, Woori Financial Research Institute achieved the distinction of being the only private financial company to participate in the government's 'Research Institute Financial Structure Task Force (TF)' established to promote productive finance.

Park explained, "Woori Financial Research Institute has conducted in-depth analyses of how neighboring countries such as Japan and China have overcome bubble collapses and demographic changes to revive their economies. In particular, we conducted thorough research on the role of corporate finance in Japan's recovery from prolonged recession, and I believe this background is why we were the only private company invited to join the government TF." He added, "It was also significant that Woori Financial was the first in the domestic financial sector to announce plans to expand productive finance, actively responding to government policy."

The government has established a 150 trillion won "National Growth Fund" to invest in high-tech industries as part of the transformation toward productive finance, and Woori Financial Group is also investing a substantial 10 trillion won. To support the group, the institute will hold an "Advanced Strategic Industry Forum" in February and March this year, with participation from banking and asset management affiliates, to enhance employees' understanding of advanced strategic industries.

Park analyzed that for the National Growth Fund to succeed, not only is strong government support required, but also a variety of prerequisites. He stated, "Clear identification of investment targets and strategic focus, activation of private sector and public participation, establishment of a transparent and professional management system, special exemptions for financial companies from liability for failures that may occur during the investment process, cross-governmental cooperation, and financial innovation are all essential."

The institute is also working to improve Woori Financial Group's corporate culture and internal controls. Park emphasized, "With strong demands for financial consumer protection, improving internal controls is essential," and stressed, "It is important to strengthen the foundation for achieving chemical synergy not only through physical integration, but also in corporate culture, ethics, and internal controls."

Jung-Hoon Park, CEO of Woori Financial Research Institute, is being interviewed by The Asia Business Daily at Woori Financial Digital Tower on Sogong-ro, Seoul. Photo by Jo Yongjun

The following is a Q&A with Jung-Hoon Park

-The pace of AI development is extremely fast. How is AI currently being used in the financial sector?

▲According to Evident, a UK research company that evaluates the use of AI by global financial companies, the number of AI use cases among the world's top 50 financial groups, as of the announcement in June last year, was 173, a nearly threefold increase from the previous year, and the number of related patents increased by 33%. The application of AI in the financial sector is expanding into almost all areas, from automating documents and improving work efficiency to fraud detection, customer consultation, and asset management. However, since the use of generative AI models is still in its early stages, there is a tendency for them to be used first in highly standardized work or to improve productivity for internal users.

-How should AI be utilized to further advance finance? Does Woori Financial Group have any unique plans or visions related to AI?

▲For finance to advance through AI, we must start with a 'shift in perception' that recognizes AI not merely as a tool for operational efficiency, but as a core element that can restructure the way financial business operates. Based on this perception, we must consistently strive to deeply integrate AI into financial business in order to enhance productivity, personalized services, and innovation capabilities. Since last year, when AI became a major topic, Woori Financial Group has been spreading AX throughout the group, raising the level of work processes and efficiency.

-There are also concerns about negative side effects, such as AI taking away human jobs. Is there a way to utilize AI while minimizing such side effects?

▲So far, it seems more accurate to say that AI is reshaping the way work is done rather than simply replacing jobs. AI is taking over repetitive and standardized tasks, while those responsible for such work are being freed up to focus on higher-value roles. However, the opportunity gap between those proficient in AI and those who are not is widening.

-Woori Financial Group has decided to make significant investments in the National Growth Fund as part of productive finance. Specifically, which areas will these investments focus on?

▲Woori Financial Group's "Future Co-Growth Project" plans to invest across the entire value chain of ten major advanced strategic industries. Through this, we expect to contribute to securing future growth engines for companies by providing funding and investment/loans to advanced strategic industries and their ecosystems. To support this, the institute plans to hold an "Advanced Strategic Industry Forum" intensively in February and March this year, with participation from banking and asset management affiliates, to enhance employees' understanding of advanced strategic industries.

-Woori Financial Research Institute was the only private financial company invited to the government's "Financial Structure TF" for productive finance. Why do you think you were the only one selected?

▲Woori Financial Group was the first in the domestic financial sector to announce plans to expand productive finance. Last year, Woori Financial Research Institute also published a book ("Japan's Great Economic Transformation") containing in-depth research on Japan, which has been seeking economic revival after overcoming the collapse of its bubble and demographic decline. This included studies on the role of corporate finance in Japan's recovery from long-term recession. I believe these factors contributed to our exclusive invitation to the "Research Institute Financial Structure TF." Within the TF, the institute is reviewing the background of China's industrial finance policy leading to the development of advanced industries, as well as the institutional factors that helped Japan regain economic vitality.

-The government created the National Growth Fund to revive the Korean economy, with support from the financial sector. What is needed for the National Growth Fund to succeed?

▲Unlike previous policy funds, the National Growth Fund is being implemented from the early days of the new administration with joint participation from industry and the financial sector, which gives it strong momentum. For the National Growth Fund to succeed, I believe it is essential to have clear investment targets and strategic focus, activation of private sector and public participation, establishment of a transparent and professional management system, special exemptions for financial companies from liability for failures that may occur during the investment process, cross-governmental cooperation, and financial innovation.

Jung-Hoon Park, CEO of Woori Financial Research Institute, is being interviewed by The Asia Business Daily at Woori Financial Digital Tower on Sogong-ro, Seoul. Photo by Jo Yongjun

-Some say that Korea's economic recovery this year is weaker than expected. What areas do you think are still lacking?

▲Although I forecast that the Korean economy will perform better this year than last year, there are still downside risks. For example, if the lagged effects of US tariff increases begin in earnest, if the AI and semiconductor cycles undergo adjustments, or if a slowdown in the domestic construction industry restricts the pace of consumption recovery, the economic rebound may be weak. In response, the government needs to support industries hit hardest by tariff increases and bolster domestic demand by stabilizing housing prices and expanding supply in the Seoul metropolitan area.

-There are growing concerns about the weakness of the Korean won. What do you see as the causes, and what is your outlook for the exchange rate this year?

▲Despite an expanding current account surplus, a narrowing interest rate gap between Korea and the US, and foreign purchases of domestic bonds, concerns about funding for US investment funds, companies retaining export earnings overseas, and an increase in overseas investments by Korean residents have caused demand for dollars to exceed supply in the foreign exchange market, resulting in a weaker won compared to Korea's economic fundamentals. However, I expect that the factors pushing the won-dollar exchange rate down (such as a weakening global strong dollar trend, a rebound in domestic growth, inflows of foreign stock and bond capital, and a favorable current account) will outweigh the upward factors (such as increased overseas investment by Korean residents), leading to a lower exchange rate by the end of this year (from 1,440 won at the end of 2025 to 1,350-1,400 won at the end of 2026).

-Recently, the KOSPI has been hitting record highs day after day, heating up the domestic stock market. What do you see as the driving forces behind this rally?

▲The driving forces behind the rise in the domestic stock market are improved corporate earnings, the resolution of the Korea Discount (undervaluation of the Korean stock market), and a revaluation of valuations. KOSPI companies' operating profits are expected to reach all-time highs and continue improving through 2027. Since the launch of the new administration, policies such as amendments to the Commercial Act to strengthen transparency in corporate governance and shareholder return policies, including increased dividends, have helped resolve the Korea Discount.

-What inclusive finance policies does Woori Financial Group have?

▲In September last year, Woori Financial Group was the first among the five major financial holding companies to announce a blueprint for productive and inclusive finance, allocating approximately 7 trillion won to expand inclusive finance, such as loans for low-income individuals, by 2030. Along with lending, we plan to play a leading role in inclusive finance by expanding support for government-linked projects, reducing financial costs for inclusive financial products, and strengthening related implementation systems.

-In 2024, Woori Financial Group acquired Korea Post Securities, and last year it acquired Tongyang Life and ABL Life, completing its comprehensive financial group portfolio. What is the role or plan of the institute in creating synergy among affiliates?

▲With the acquisitions of Korea Post Securities and Tongyang Life and ABL Life, Woori Financial Group has laid the foundation to become a comprehensive financial group. The institute aims to provide direction and detail so that the comprehensive financial group can maximize synergy. In addition, the institute plays an important role in improving the corporate culture, ethics, and internal controls of Woori Financial Group companies. It is important to strengthen the foundation for achieving chemical synergy not only in physical business but also in corporate culture, ethics, and internal controls.

◆Profile of Jung-Hoon Park, CEO of Woori Financial Research Institute

▲Born in 1969 ▲Graduated from Seoul National University, Department of Business Administration ▲MBA from Northwestern University, USA ▲Passed the 35th Civil Service Examination ▲Director of Global Finance at the Financial Services Commission ▲Director of Insurance ▲Head of Capital Market Investigation ▲Director of Planning and Coordination ▲Standing Commissioner ▲Director of the Financial Intelligence Unit (FIU) ▲CEO of Woori Financial Research Institute (since August 2023)