[SAFF 2020] Park Young-seok "Balance Between Growth and Stability in Financial Investment Industry Important After COVID-19"

Park Young-seok, President of the Korea Capital Market Institute, Presents "Challenges and Regulatory Directions for the Financial Investment Industry in the Post-COVID Era"

The "2020 Seoul Asia Financial Forum (SAFF 2020)" hosted by Asia Economy was held on the 20th at the Western Chosun Hotel in Jung-gu, Seoul. Park Young-seok, President of the Korea Capital Market Institute, is giving a lecture on investment strategies amid the global crisis. This event, held under the theme "Post-COVID-19, Financial Market Stabilization Measures," aimed to deeply explore innovative strategies to overcome uncertainties in the era of Big Blur in finance and capital markets. This year, to prevent the spread of COVID-19 and ensure the safety of speakers and participants, the event was conducted via online live streaming. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Kum Bo-ryeong] "In the post-COVID-19 era, coexistence of growth and stability, that is, maintaining balance, is important."

On the 20th, Park Young-seok, President of the Korea Capital Market Institute, gave a presentation on the challenges and regulatory directions of the financial investment industry in the post-COVID-19 era at the '2020 Seoul Asia Financial Forum: Post-Corona, Financial Market Stability Measures' held at the Westin Chosun Hotel in Sogong-dong, Jung-gu, Seoul.

First, President Park analyzed the environmental changes and impacts in the post-COVID-19 era. He predicted that the period of deviation from the long-term growth trajectory of the global economy would be prolonged. Park said, "The growth rates of major advanced countries such as the United States, Germany, and Japan had already declined to around 2% before the spread of COVID-19," and added, "Even if COVID-19 is controlled, it is unlikely that the real gross domestic product (GDP) will easily return to the long-term trend before the crisis."

He also highlighted the acceleration of the contactless (untact) economy. He forecasted that the contactless economy, including online shopping and remote work, which had already been developing before the pandemic, would progress much faster than it had over the past decade.

In addition, he judged that economic nationalism would intensify as more diverse forms of inter-country conflicts ignite after the spread of COVID-19, and that government debt in advanced countries such as the United States and Europe, which had severe economic lockdowns, would surge sharply.

President Park divided the changes in the global financial investment industry into three eras. From 1980 to 2008 was the "Era of Techniques," from 2009 to last year was the "Era of Regulation," and from this year onward is the "Era of Technology." He especially noted that unlike previous periods when capital markets grew, the Era of Technology after COVID-19 would see an increase in crises.

Therefore, President Park emphasized that maintaining a balance between growth and stability is important in the post-COVID-19 era. He explained, "It is necessary to nurture various types of high-productivity companies through the progressive succession of existing innovative growth policies to secure an advantage in global innovation competition and through sophisticated strategies," and added, "The role of capital markets, which can diversify risks, is important to support high-risk innovative industries. In particular, the sound development of the financial investment industry, which is the core of the capital market intermediation function, is required."

He continued, "The correct direction of policy regulation should pursue innovative growth through the efficiency of capital market intermediation functions while being able to respond to new types of crises," and added, "Maintaining the soundness of financial investment companies and strengthening investor protection must also be achieved."

This content was produced with the assistance of AI translation services.