Financial Services Commission Holds "Financial Industry Productive Finance Communication Meeting"

Finance Must Lead Sustainable Growth
Concentration on Real Estate and Collateral Does Not Help
Financial Holding Companies to Establish Organizations for Better Industry Understanding

On October 28, the Financial Services Commission announced that it held the "Financial Industry Productive Finance Communication Meeting" to strengthen communication and cooperation with the financial sector, which is the main driver of the transition to productive finance.

This meeting was presided over by Vice Chairman Kwon Daeyoung of the Financial Services Commission and attended by executives in charge of productive finance from KB, Shinhan, Hana, Woori, Nonghyup, BNK, iM, JB, Meritz, Korea Investment Holdings, Mirae Asset Securities, Kiwoom Securities, Samsung Fire & Marine Insurance, Hanwha Life Insurance, and Kyobo Life Insurance.

In his opening remarks, Vice Chairman Kwon stated, "Today's meeting was organized to share consensus between the government and the financial sector on the transition to productive finance, and to discuss prompt and practical measures for its implementation." He also asked the financial sector to candidly share what is needed for a successful transition, as the government is pursuing productive finance as a core task for sustainable growth.

Kwon further emphasized that productive finance means "finance must restore its fundamental role of leading sustainable economic growth," and pointed out that the traditional approach, where financial market funds are concentrated in real estate and collateral, does not contribute to the growth of either the financial sector or the national economy.

He went on to say that now is the time for the financial sector to take an active role in fostering future growth engines, and that a new perspective, new methods, and new approaches are needed for growth that is different from the traditional ways.

Specifically, he highlighted the importance of collaboration and communication between the financial and industrial sectors to enable finance to participate in the industrial innovation ecosystem, and said that the financial sector needs to strengthen its capabilities in screening, evaluation, and management of industries. In this regard, he proposed that financial holding companies establish dedicated organizations to enhance their understanding of industries.

He also stated that the Financial Services Commission will faithfully carry out necessary efforts, such as regulatory improvements, to help the financial sector successfully implement productive finance. He explained that the three major transitions-shifting from real estate to high-tech, venture, and innovative companies; from deposits and loans to capital market investment; and from the Seoul metropolitan area to regional areas-as well as the three key areas and nine major tasks presented at the "Productive Finance Grand Transition Meeting" on September 19, are being pursued swiftly.

Vice Chairman Kwon pointed out, "This may be our last opportunity to transform our financial structure and pursue a new leap forward," and warned, "We must not settle for 'productivity in name only,' focusing merely on formal performance statistics and quantitative results."

He added, "Starting in November, we will identify necessary policy tasks such as regulatory improvements for the financial sector through the regulatory improvement task forces operated by each financial industry association, and at the government level, we will continue efforts to rationalize regulations in cooperation with the Financial Supervisory Service, academia, and other experts."

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