[2023 IPR Forum] Changes in the Capital Market Brought by Activism and AI (Summary)

The 2023 Asia Economy IPR Forum, themed "Changes in the Capital Market Driven by Activism and AI," was successfully held. At this forum, Professor Kim Young-ik of Sogang University Graduate School of Economics, Vice President Lim Hyun-chul of KCGI, Professor Son Byung-hee of Kookmin University and Executive Director of Maum AI, and CEO Lee Jung-soo of Flitto presented analyses and forecasts related to the global economy, capital markets, and artificial intelligence (AI) technology.

Shin Beom-su, Editor-in-Chief of Asia Economy, is delivering a greeting at the '5th Asia Economy IPR Forum' held on the 8th at the Press Center in Jung-gu, Seoul. Photo by Dong-joo Yoon doso7@

At the opening speech of the '2023 Asia Economy IPR Forum' held on the 8th at the 19th floor of the Korea Press Center in Jung-gu, Seoul, Shin Beom-su, Editor-in-Chief of Asia Economy, said, "This year, the wave of shareholder activism and AI technology has brought significant changes to industries and capital markets," adding, "This will be a time to review what concerns we have at this point and what we need to prepare."

The first session featured Professor Kim Young-ik of Sogang University Graduate School of Economics, who gave a lecture titled "Global Financial Market Outlook ? Crisis and Opportunity." Professor Kim stated, "As the birth rate declines, the labor population is shrinking, and as a result, our country's potential growth rate has entered the 1% range," emphasizing, "Since the domestic economy has entered a phase of structural low growth and low interest rates, a different asset allocation from before is necessary."

Professor Kim Young-ik of Sogang University Graduate School of Economics is giving a lecture on the topic "Global Financial Market Outlook - Crisis and Opportunity" at the 5th Asia Economy IPR Forum held on the 8th at the Press Center in Jung-gu, Seoul. Photo by Yoon Dong-joo doso7@

Professor Kim predicted that interest rates will fall further as economic growth slows. Although liquidity surged after COVID-19 causing inflation and maintaining high interest rates now, in the long term, the economy will not be able to sustain these rates, leading to a decline. The fact that companies are reducing investments and focusing more on savings is another reason why interest rates are expected to drop further.

Regarding the U.S. market, he recommended a conservative approach. Professor Kim Young-ik explained, "Considering the expanding scale of U.S. debt and internal and external imbalances, the economic situation is unlikely to improve," adding, "Recently, the U.S. announced the resolution of the debt ceiling negotiations and plans to issue $1 trillion in Treasury bonds, which will absorb market liquidity and limit the stock market's rise."

The second session was led by Vice President Lim Hyun-chul of KCGI, who spoke on "Creating Investment Returns through Corporate Governance Improvement and Climate Change Response." Vice President Lim said, "The Korea discount has occurred due to backward corporate governance," and added, "The undervaluation caused by backward governance functions as a reliable downside safety net for investments."

Lim Hyun-chul, Vice President of KCGI, is giving a lecture on the topic of "Creating Investment Returns through Governance Improvement and Climate Change Response" at the "5th Asia Economy IPR Forum" held on the 8th at the Press Center in Jung-gu, Seoul. Photo by Yoon Dong-joo doso7@

KCGI focuses investments on such companies and enhances shareholder rights through activist strategies. He introduced KCGI's strategy of improving corporate governance to generate investment returns by citing actual cases such as Ostem Implant, Hanjin KAL, LIG, and Daelim.

Having focused on corporate governance improvement, KCGI now plans to enter industries responding to climate change. Vice President Lim stated, "Korea's response to the climate crisis is very insufficient," and forecasted, "Ultimately, capital logic must be reflected for efforts related to climate response to be activated."

The third session featured Professor Son Byung-hee of Kookmin University and Executive Director of Maum AI, who presented on "Utilization Methods of Large-scale Language Models." He explained that specialized ChatGPT and Human AI development by industry and company is possible.

Professor Byeonghee Son of Kookmin University and Executive Director of Mind AI is giving a lecture on the topic "Utilization of Ultra-Large Language Models" at the "5th Asia Economy IPR Forum" held on the 8th at the Press Center in Jung-gu, Seoul. Photo by Dongju Yoon doso7@

Professor Son explained, "The AI service process starts from whether data can be applied with technology, then moves into the learning process, and if learning is successful, an enterprise GPT can be created." He also said, "Using the Maum Orchestra tool to pull APIs and build front-end applications, the process of generating Human AI can be understood." Maum Orchestra refers to a service that integrates AI existing only in scattered API forms.

Maum AI has five core engines: vision, hearing, voice, face, and language, which it integrates and expands to Human AI, enabling development into actual conversational forms.

The fourth session was led by CEO Lee Jung-soo of Flitto, who gave a lecture titled "Changes in the Translation Industry Brought by Generative AI." He emphasized that sufficient data must be secured through learning for generative AI.

Lee Jung-soo, CEO of Flitto, is giving a lecture on the topic "Changes in the Translation Industry Brought by Generative AI" at the 5th Asia Economy IPR Forum held on the 8th at the Press Center in Jung-gu, Seoul. Photo by Dongju Yoon doso7@

CEO Lee said, "If ChatGPT is compared to Hallabong (a type of citrus), it is an amazing Hallabong. People will start cutting this Hallabong and selling it in various forms," adding, "One Hallabong costs 1,000 won, but by cutting it to make patbingsu (red bean shaved ice), it can be sold at a higher price." He continued, "The technology to make this patbingsu is necessary, and for that, sufficient data is required."

Flitto is a language data and professional translation service company. Recently, it beta-launched 'Flitto AI Plus,' an online translation service that integrates generative AI technology into its AI translation engine. It differentiates itself from other services using generative AI by being based on 'Flitto AI Translation,' which has learned high-quality language data.

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