[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 only 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 in the financial market," and stressed, "For financial institutions, the adoption of AI is an essential task that must be accomplished to survive in a rapidly changing world."

According to Evident, a UK-based research firm that evaluates global financial companies' use of AI, the number of AI applications among the world's top 50 financial groups announced in June last year reached 173, about three times higher than the previous year. The number of related patents also increased by 33%. The application of AI in the financial sector is expanding to nearly every area, from work efficiency improvements such as document automation to fraud detection systems (FDS), customer consultations, and asset management.

Park argued, "In order for finance to advance through AI, we must start with a 'change in perception' that recognizes AI not just as a tool for operational efficiency but as a core element that restructures the way financial business operates." He added, "Based on this perception, we must consistently work to deeply integrate AI into financial business to enhance productivity, personalized services, and innovation capabilities."

Regarding concerns that AI will completely replace human jobs, Park said there is little need for excessive worry. He stated, "Looking at the situation so far, it is more accurate to say that AI is reshaping the way work is done rather than replacing jobs. AI is taking over repetitive and standardized tasks, while those responsible for such work are now able to focus on higher-value roles." However, he pointed out, "The opportunity gap between those proficient in AI and those who are not is widening," and explained, "To minimize this gap, programs that enhance AI literacy and support its utilization 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 core areas such as screening, consultation, and internal controls," and mentioned, "We plan to expand new digital businesses based on data and AI capabilities to strengthen our future competitiveness."

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

This year, Woori Financial Group is actively pursuing key government-led financial policies such as productive finance and inclusive finance. In particular, Woori Financial Research Institute achieved the distinction of being the only private financial institution to participate in the government's 'Research Institute Financial Structure Task Force (TF)' for productive finance.

Park explained, "Woori Financial Research Institute has conducted in-depth analyses of how neighboring countries like Japan and China have overcome bubble collapses and demographic changes to revive their economies. In particular, we conducted comprehensive research on the role of corporate finance in Japan's recovery from long-term recession, and I believe this background is why we were the only private financial institution invited to the government TF." He added, "Woori Financial Group was also the first in the domestic financial sector to announce plans to expand productive finance, actively responding to government policy, which was also a key factor."

To drive the transformation toward productive finance, the government has created the 150 trillion won 'National Growth Fund' to invest in advanced industries, and Woori Financial Group is also injecting a large-scale fund of 10 trillion won. To support this, the research institute plans to host the 'Advanced Strategic Industry Forum' intensively between February and March this year, with participation from the group's banking and asset management subsidiaries, to enhance employees' understanding of advanced strategic industries.

Park analyzed that for the National Growth Fund to succeed, active government support and various preconditions are essential. He diagnosed, "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 institutions from liability for failures that may occur during the investment process, cross-government cooperation, and financial innovation are all necessary."

The research institute is also working to improve Woori Financial Group's corporate culture and internal controls. Park emphasized, "In a situation where strong financial consumer protection is required, improving internal controls is essential," and stressed, "It is important to strengthen the foundation for achieving not only physical integration but also chemical synergy 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 utilized in the financial sector?

▲According to Evident, a UK-based research firm that evaluates global financial companies' use of AI, the number of AI applications among the world's top 50 financial groups announced in June last year reached 173, about three times higher than the previous year, and the number of related patents increased by 33%. The application of AI in the financial sector is expanding to nearly every area, from work efficiency improvements such as document automation to fraud detection, customer consultations, and asset management. However, as the use of generative AI models is still in its early stages, there is a tendency for AI to be used primarily in highly standardized work or to improve productivity for internal users.

-How should AI be utilized for further advancement in finance? Does Woori Financial Group have any differentiated plans or visions related to AI?

▲For finance to advance through AI, we must start with a 'change in perception' that recognizes AI not just as a tool for operational efficiency but as a core element that restructures the way financial business operates. Based on this perception, we must consistently work to deeply integrate AI into financial business 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, improving work processes and efficiency levels.

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

▲Looking at the situation so far, it is more accurate to say that AI is reshaping the way work is done rather than replacing jobs. AI is taking over repetitive and standardized tasks, while those responsible for such work are now able 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 be the main focus of investment?

▲Woori Financial Group's 'Future Co-Growth Project' plans to invest across the entire value chain of the top 10 advanced strategic industries and related sectors. Through this, we expect to contribute to securing future growth engines for companies by providing funding and investment support throughout the advanced strategic industry ecosystem. To support this, the research institute plans to host the 'Advanced Strategic Industry Forum' intensively between February and March this year, with participation from the group's banking and asset management subsidiaries, to enhance employees' understanding of advanced strategic industries.

-Woori Financial Research Institute was the only private financial institution 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. Woori Financial Research Institute also published a book last year (The Great Transformation of the Japanese Economy) containing in-depth research on Japan, which has been striving for economic revival despite bubble collapse and an aging, declining population. This included research on the role of corporate finance in overcoming Japan's long-term recession. I believe these factors are why we were the only private financial institution invited to the 'Research Institute Financial Structure TF.' In the TF, the institute is examining the background of China's industrial finance policies leading to advanced industry development and the institutional background of Japan's economic revitalization.

-The government created the National Growth Fund to revive the economy, and the financial sector is also contributing. What is required for the National Growth Fund to succeed?

▲Unlike past policy funds, the National Growth Fund is being promoted from the early days of the new administration with joint participation from industry and the financial sector, which I believe gives it strong momentum. For the National Growth Fund to succeed, 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 institutions from liability for failures that may occur during the investment process, cross-government cooperation, and financial innovation are necessary.

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 the pace of Korea's economic recovery this year is weaker than expected. In which areas do you think there are still shortcomings?

▲Although Korea's economy is expected to perform better this year than last year, there are still downside risks. For example, if the lagged effects of US tariff hikes materialize, if the AI and semiconductor cycle undergoes adjustment, or if a slump in the domestic construction market restricts the pace of consumption recovery, the economic rebound may be weak. In response, the government needs to support industries struggling with the impact of tariff hikes and bolster domestic demand by stabilizing housing prices and expanding supply in the Seoul metropolitan area.

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

▲Despite an expanded current account surplus, a narrowing interest rate differential with other countries, and foreign purchases of domestic bonds, factors such as concerns related to fundraising for US-bound investment funds, companies retaining export earnings abroad, and increased overseas investment by Korean residents have resulted in demand for dollars outstripping supply in the foreign exchange market, leading to a weaker won compared to Korea's economic fundamentals. However, for this year, I expect the downward factors for the won-dollar exchange rate (such as a weakening global strong-dollar trend, a rebound in domestic growth, inflows of foreign equity and bond capital, and a favorable current account balance) to outweigh the upward factors (such as increased overseas investment by Korean residents), resulting in a lower exchange rate (from 1,440 won at the end of 2025 to 1,350-1,400 won at the end of 2026).

-Recently, the KOSPI has repeatedly hit all-time highs, 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 revaluation of valuations. KOSPI companies' operating profits are expected to continue improving through 2027, setting new records. 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 like increased dividends have helped resolve the Korea Discount.

-What inclusive finance policies has Woori Financial Group implemented?

▲In September last year, Woori Financial Group was the first among the five major financial holding companies to announce its blueprint for productive and inclusive finance, allocating about 7 trillion won to expand inclusive finance such as loans for low-income households by 2030. In addition to loans, we plan to play a leading role in inclusive finance by expanding support for government-linked projects, reducing financial costs for financial products for low-income households, 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 role or plans does the research institute have to create synergy among subsidiaries?

▲With the acquisitions of Korea Post Securities and Tongyang Life and ABL Life, Woori Financial Group has established a foundation to become a comprehensive financial group. The research institute aims to provide direction and detail to maximize synergy across the group. In addition, the institute plays an important role in improving the corporate culture, ethics, and internal controls of Woori Financial Group's subsidiaries. Strengthening the foundation for achieving not only physical business integration but also chemical synergy in corporate culture, ethics, and internal controls is also important.

◆Profile: 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 ▲35th Administrative Examination ▲Former Director of Global Finance, Financial Services Commission ▲Former Director of Insurance ▲Former Head of Capital Market Investigation Team ▲Former Director of Planning and Coordination ▲Former Standing Commissioner ▲Former Director of the Financial Intelligence Unit (FIU) ▲CEO of Woori Financial Research Institute (since August 2023)