[2026 Financial Forum] Kwon Daeyoung, Vice Chairman of the Financial Services Commission: "Korean Finance Must Evolve into Strategic Capital to Safeguard Technological Sovereignty"

Korean Economy Faces Geopolitical Conflicts, Technological Supremacy, and AI Transformation
Government and Private Sector Must Work Together for a “Great Transformation to Productive Finance”
Financial Sector Itself Must Evolve for the Shift to Productive Finance

Daeyoung Kwon, Vice Chairman of the Financial Services Commission, is delivering congratulatory remarks at the 2026 Asia Financial Forum held on May 21 at the Westin Chosun Seoul, themed "The Great Transformation of Future Finance: The Era of Productive Capital and the New Financial Order." 2026.5.21 Photo by Hyunmin Kim

Hello, I am Kwon Daeyoung, Vice Chairman of the Financial Services Commission. I would like to sincerely congratulate you on the hosting of the 2026 Asia Financial Forum today.

I would like to thank President Jang Beomsik, Chairman Hiroshi Nakaso, Professor Sayuri Shirai, CEO Sohn Byungdoo, and Economist Sonal Varma.

The Korean economy is currently facing three challenges. First, there are geopolitical conflicts. The trade order and energy supply chains are becoming unstable. Second, there is the competition for technological supremacy. In the fields of AI, semiconductors, robotics, and biotechnology, a single technological edge can determine a nation's future. Third, there is the AI transformation. AI is fundamentally transforming all industries. Competition for AI technology sovereignty is the most intense.

Therefore, at the core of these challenges are technological sovereignty and investment. The United States is engaging in an investment war through Silicon Valley and Wall Street. China is responding with state capitalism. Over the next five years, the amount of investment needed for Korea's advanced industries exceeds 500 trillion won.

Government-led seed investments and private venture capital must work together. The Korean government’s financial policy for this is a “Great Transformation to Productive Finance.” First, we have established a National Growth Fund worth 150 trillion won. We plan to make concentrated investments in future strategic industries, including 31 trillion won for AI and 21 trillion won for semiconductors. Second, we are innovating the capital market. We will fundamentally reform the market based on four pillars: strengthening trust, protecting shareholders, innovating the exchange, and expanding accessibility. Third, we will strengthen the venture and innovation business ecosystem. We plan to support all stages from initial startup to growth and the exit market. Fourth, we will promote inclusive finance. We will ensure that marginalized groups and small and medium-sized enterprises are included in this process.

To shift to productive finance, the financial sector itself must evolve. The flow of funds is shifting from bank deposits and loans to the capital markets. The pace of change in financial technology, including AI, token securities, and digital assets, is faster than ever. We will actively discuss and provide proactive support so that government policies, regulations, and supervision—as well as the organization, human resources, and KPIs of financial companies—can reflect both the benefits and risks of the new financial order, as well as consumer protection, in a balanced way.

The competition for technological supremacy and the restructuring of supply chains are not issues for any one country alone. I hope that today’s forum will provide an opportunity for us to consider Asian financial cooperation together.

I would like to conclude by emphasizing one thing: in the end, the outcome depends on technological sovereignty. Just one technology—such as high-bandwidth memory (HBM) semiconductors—has changed the landscape of the entire semiconductor market. A single technology determines a nation's economy, industrial competitiveness, and security. I will do my utmost to ensure that Korean finance evolves beyond patient long-term capital and becomes strategic capital that invests in transformative technologies. Thank you.

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