Financial Investment Industry's 'Im In Year Themes' Seen Through New Year's Address... Digital Innovation & ESG Management

In 2021, despite the shock of COVID-19, the KOSPI index surpassed the 3,300 mark, creating a new milestone in the domestic stock market. At the same time, the index experienced a sharp decline due to tapering (reduction of asset purchases), inflation, US-China conflicts, and concerns over virus variants. In the new year of the Year of the Tiger, we hope the Korean economy will leap forward with the tiger's bravery. Yeouido financial district, Seoul. Photo by Moon Honam munonam@

[Asia Economy Reporter Lee Seon-ae] The key keywords for CEOs in the financial investment industry in the Year of the Tiger are summarized as digital financial innovation and strengthening ESG (Environmental, Social, and Governance) management. They view digital transformation in the non-face-to-face (untact) environment triggered by COVID-19 and ESG-based management as a new milestone that will determine survival in the 'post-COVID-19' era.

Choi Hyun-man, CEO of Mirae Asset Securities, presented 'G. I. D. P 2.0,' achieving quantitative and qualitative super-gap, as this year's business strategy in his New Year's address on the 3rd. This means accelerating the G. I. D. P. (Global. Investment. Digital. Pension) initiative promoted last year. Choi emphasized digital innovation, saying, "With the implementation of the MyData business, assets of all financial companies will be opened, and financial product door-to-door sales, retirement pension IPS, and default options will be newly implemented." He added, "Companies that prepare superior and differentiated asset management capabilities and consulting capabilities, competitive solutions, and customized content ahead of others will dominate the market." He also did not forget to urge ESG management to fulfill 'social responsibility.' He requested, "Please practice warm capitalism with consideration throughout the business according to the ESG management mission of clearly recognizing social responsibility and roles and pioneering a sustainable future based on investment and management."

Jung Young-chae, President and CEO of NH Investment & Securities, also emphasized digital innovation across all business sectors. He said, "New investment means such as virtual assets, unlisted stocks, and fractional investment are attracting attention, and everything including the products and services customers want and the criteria for selection has changed. Digital technology is accelerating this change." He added, "All company operating systems must be established and carried out centered on enhancing customer value, and cooperation between business divisions must be further strengthened." He also stressed the need to steadily strengthen the ESG perspective operating system, which is gaining social interest. He stated, "As the scope of services has expanded, establishing appropriate customer protection and risk management systems and fulfilling the social responsibilities required as a member of NongHyup Financial Group are closely linked to creating more sustainable customer value."

Jung Il-moon, President and CEO of Korea Investment & Securities, also urged ▲risk management ▲digital innovation ▲transparency in decision-making processes in his New Year's address, emphasizing that these three are the foundation of sustainable growth and tasks to continue focusing on.

Kim Sung-hyun, President and CEO of KB Securities, urged working with a 'customer-centric' approach and emphasized the need to seize future finance through strategic business expansion centered on digital and platforms. He stressed, "Let's definitely create a financial investment platform that leads to differentiated customer experience innovation and inspiration unique to KB Securities, such as providing content and UI/UX reflecting diverse customer needs linked to MyData services and offering various services through partnerships with other industries." He also requested the efforts of all KB Securities employees to advance management control systems and spread ESG management.

Shinhan Financial Investment also set digital leading company as its strategic direction. Lee Young-chang, President and CEO of Shinhan Financial Investment, said, "We plan to carry out a next-generation project to lead the market as a comprehensive investment platform beyond the securities industry." He added, "The next-generation ICT system designed through this project will create strong momentum to lead the industry and become a digital leading company."

A financial investment industry insider said, "Financial sectors are competing fiercely to attract customers beyond industry barriers, which is directly linked to survival, so digital innovation is inevitable." He added, "Also, since ESG ratings have emerged as a major variable in management, it is expected that this year will focus on systematizing ESG management."

The strategies of securities-related institutions this year are also aligned. On this day, Sohn Byung-doo, Chairman of the Korea Exchange, said at the opening ceremony of the securities and derivatives market, "In the era of digital transformation accelerated by COVID-19, the role of the capital market in promoting the restructuring of the economic and industrial structure and fostering next-generation growth engines is more important than ever." He added, "We will expand the listing of K-unicorn companies, actively support smooth funding for future promising industries such as AI and robotics, and revitalize the KOSDAQ and KONEX markets." He also said, "Furthermore, to spread sustainable finance and responsible investment culture, we will solidify corporate ESG information disclosure."

Lee Myung-ho, President of the Korea Securities Depository, also said, "This year, we will establish a foundation for digital financial innovation and secure new growth engines," and announced plans to prepare a roadmap for building a platform dedicated to issuing and distributing security tokens (STO). He envisions establishing new business models and organizational systems based on blockchain technology. Additionally, he said, "We will introduce ESG management to lay the foundation for becoming a sustainable company," and added, "We will make 2022 the first year of practicing ESG management and take the lead in creating sustainable and mutually beneficial value."

Jung Gu-yong, Chairman of the Korea Listed Companies Association, promised to spare no support for the smooth landing of ESG management. He said, "Although ESG management is directly linked to corporate survival, the burden felt varies depending on the industry or industrial environment of individual companies." He promised, "We will support minimizing difficulties such as confusion caused by ambiguous ESG standards, high costs for certification, and increased workload due to mandatory disclosure requirements."

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