Korea’s top financial regulator said on Sept. 19 that inter-Korean economic cooperation will create an opportunity for mutual growth between foreign and South Korean financial companies.
Referring to the Pyongyang North–South Joint Declaration adopted on Sept. 19, Financial Supervisory Service (FSS) Governor Yoon Suk-heon said, “As inter-Korean economic cooperation includes financial companies, the financial authorities will also need a role. Inter-Korean cooperation projects will provide foreign and South Korean financial firms with an opportunity for mutual growth.”
After a meeting with CEOs of foreign financial companies held at Conrad Hotel in Yeouido, Seoul, on the same day, Yoon said reporters, “We need to see how cross-border economic cooperation goes. As Korea Development Bank (KDB) chairman was one of the members of President Moon's entourage to Pyeongyang, (the KDB) will draw up an overall cooperation framework that will include financial companies. Then, the Financial Services Commission or the FSS will need to play a role.”
Yoon also urged foreign financial companies to give advice and support, saying that inter-Korean economic cooperation will be a chance for both the South Korean financial market and foreign financial companies to take a leap. He said, “Inte-Korean economic cooperation is expected to catalyze South Korean government’s efforts to promote the South Korean financial market as a financial hub in Northeast Asia. It will serve as a momentum of mutual growth of the South Korean financial market and foreign financial firms.”
Yoon added, “As South Korea’s population is rapidly aging, the demand for pension assets surpassed the 1,000 trillion won (US$891.27 billion) mark at the end of June for the first time ever. With such a rosy prospect for the asset management market, the South Korean government needs foreign financial companies’ advice and cooperation based on their experience and expertise.”
In addition, he asked foreign financial firms to manage risks and protect financial consumers, saying, “We will improve regulations which are excessive and irrational compared to the global standards. Please set a good example in providing various products and services based on experience in the global market, establishing an effective internal control system and thoroughly managing risks.”