“We have successfully drafted major financial policies and action plans last year. We are close to resolving impending problems. And we have set the vision for the financial industry which will become a guideline for Korea’s finance for the next decade. I sincerely thank all of the FSC employees for their dedicated efforts.
This year, we will actually execute and initiate the policies we have prepared. Financial industry will be equipped with stronger competitiveness. Markets will face significant changes.
I expect our efforts will be rewarded with fruitful results if we approach cautiously. Of course, the road ahead is bumpy but I am confident that we are capable enough to jump over the obstacles.
The first question I would like to raise is that ‘is finance giving hope to the people?’
The word ‘finance’ is derived from the latin word ‘finis’ which means ‘goal’. In other words, finance is a means to achieve the goal. Finance is a means to realize people’s dream.
However, we are now faced with fundamental and structural problems such as low growth and aging population. It is impossible to respond to the new economic and social needs if the financial industry does not change. The role of the financial industry must be reshaped according to the economic and social transformation.
The proposed vision for the financial industry reflects such situations we are now faced with. We will realize ‘creative finance’ and support ‘creative economy’. Finance will give hope and become a tool which people and businesses can use to achieve their goals.
Second question, ‘do people have trust in finance?’
Financial industry is an industry based on trust. Financial industry can neither grow nor evolve without earning trust. Korea’s financial industry has done its part to support the growth of real economy and successfully recover from the Asian financial crisis of the late 1990s.
However, we have learnt from overcoming several financial crises that the soundness of the financial institutions and financial system is absolutely important. In other words, finance has to become a stable source of funding into the real economy.
Moreover, soundness and risk of the financial system must be properly managed in order to protect the wealth of individuals, businesses, and the society. We know better than anyone that the failure of managing financial systemic risk brings disastrous consequences.
The government will encourage financial institutions to manage their own risks and come up with various policy measures to make the financial industry support the real economy. Moreover, we will impose strict regulations and sanctions to those who act against and harm the confidence of the financial system. We will not tolerate any moral hazards. We will act preemptively and decisively to protect the credibility of the financial industry.
Finance cannot exist without trust. We can only discuss growth on the basis of firm trust. If the employees of the FSC do their duties and fulfill their responsibilities, people’s trust towards the finance will become firm as a rock.
I sincerely hope that Korea’s financial industry would take another big leap forward based on the iron trust of the Korean people.” – New year’s speech by FSC Chairman Shin Je-Yoon during the FSC’s kick-off ceremony for 2014 on January 2, 2014.