Lee Bok-hyun, Financial Supervisory Service Chief, Meets Foreign CEOs Right After Trump's Inauguration to Discuss "Enhancing Soundness Supervision"

Meeting of CEOs from Deutsche Bank, JP Morgan, and Other Banks, Insurers, and Investment Firms
Convened for the First Time in a Year and a Half... In Response to the Second Trump Administration
"Flexible Response to America-First Policies of the Second Trump Administration"

Lee Bok-hyun, Governor of the Financial Supervisory Service (FSS), met with the CEOs of 10 foreign financial companies operating in Korea and stated that he will advance the soundness supervision system to stabilize the financial market. He reassured the CEOs that despite increased uncertainties due to the inauguration of the second term of the U.S. Donald Trump administration and the domestic impeachment crisis, the Korean economy has the capacity to cope.

Financial Supervisory Service Governor Lee Bok-hyun is giving a back briefing after concluding a meeting with the chairpersons of bank holding company boards at the Bankers' Hall in Jung-gu, Seoul, on the afternoon of November 28 last year. Photo by Yonhap News

On the 21st, Governor Lee held a 'Foreign Financial Company CEO Meeting' at the Fairmont Ambassador Seoul in Yeouido, Yeongdeungpo-gu, Seoul, emphasizing this point. The meeting was attended by CEOs from 10 companies including banks such as Deutsche Bank, insurance companies like AIA Life, and financial investment firms such as JP Morgan.

This foreign financial company CEO meeting, presided over by Governor Lee, was held for the first time in a year and a half since July 2023. An FSS official explained, "The meeting was held considering industry demand to hear the authorities' policy direction following the inauguration of the second Trump administration."

At the meeting, Governor Lee conveyed the stability of the Korean financial system and the supervisory authorities' response status to the foreign financial companies. They discussed countermeasures in case uncertainties in the real economy and financial markets increase due to U.S.-centered trade policies and shifts in climate and energy policies.

Governor Lee said, "Despite domestic and international uncertainties, the fundamentals of the Korean economy such as the current account balance, export performance, and foreign exchange reserves are sound," and urged, "Please trust the resilience of the Korean financial market and the capabilities of the policy authorities and focus on your business activities."

He stated that the soundness supervision system will be advanced to stabilize the financial market. He said, "We will enhance the soundness supervision system by reflecting international consistency so that the Korean financial system can perform its inherent functions stably without being shaken by external shocks."

According to the authorities, Governor Lee's remarks do not mean creating a specific system for foreign financial companies. It is explained that it is in the context of generally refining the soundness supervision system.

An FSS official said, "We plan to disclose specific details through work plans," and added, "(Governor Lee's remarks) do not mean creating a new customized soundness supervision system for foreign financial companies."

Governor Lee also mentioned that he will continue to promote capital market advancement tasks such as revitalizing the capital market, improving the short-selling system, and supporting shareholder value-oriented corporate management.

The CEOs anticipated impacts such as ▲increased inflation risk due to the Trump administration's trade policies ▲slowing pace of U.S. Federal Reserve interest rate cuts ▲expanded preference for safe assets due to supply chain restructuring.

They said they are not greatly concerned about the Korean financial market. The CEOs cited ▲sufficient foreign exchange reserves ▲limited impact on the national credit rating ▲experience in smoothly concluding the impeachment crisis of former President Park Geun-hye as reasons.

The CEOs also suggested that the financial authorities pursue capital market policies such as value-up (corporate value enhancement) policies and the resumption of short selling in a consistent direction.

Governor Lee said, "We will continue to make efforts to create conditions where global financial companies and investors can find opportunities and operate stably in the Korean financial market," and added, "We plan to maintain close communication with foreign financial companies on major financial issues going forward."

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