For the last one year and so, the government has been concentrating its efforts in setting the financial industry’s vision and establishing related system to coop with the changing economic structure and conditions. Moreover, the FSC devised and announced comprehensive plan to overhaul financial regulatory system.
However, the financial industry still has long way to go to completely abolish its old and outdated practices. Necessary funds are still not effectively channeled to those in need such as startup entrepreneurs and CEOs of SMEs.
In order to narrow the gap between the real economy and the current conditions of the financial industry, the government and financial sector must work together to come up with tangible outcomes that can be actually be felt by those at the frontline of the economy.
The first meeting of the Committee for Financial Innovation was held on September 16, to discuss ways to improve unreasonable financial practices, thereby achieve sustainable growth of the financial industry.
During his opening speech, FSC Chairman Shin Je-Yoon mentioned that technology finance must take deep root in the financial system as soon as possible. To such backdrop, according to Chairman Shin, the government will start reviewing each bank’s efforts to promote technology finance in October. Various incentives will be granted to those contributing in the realization of creative finance, said Mr. Shin.
“Second, venture capital should be further facilitated in order to encourage active investment in creative ideas. We must create a healthy cycle of investing and reinvesting in innovative ideas” Chairman Shin added.
“Third, we must abolish outdated financial practices. Unreasonable inspections and sanctions are the main culprits of hampering financial innovation. Therefore, our priority is to improve the current supervisory system. We will ban financial regulators from imposing excessive sanctions on the employees of financial institutions. We will encourage financial firms to improve unfair internal practices.”
Chairman Shin said that he believes that the government should open its ears wider to the voices of financial consumers.
Based on firm belief that the answer to the government’s tasks lie in the actual business fields, Chairman Shin will visit local employment center in Seosan and venture companies located in Gyeonggi Province to share opinions with financial consumers about what financial regulations need to be improved.
“I am confident that the financial sector will push our economy to the next level. I would like to ask for the commissioners of the Committee for Financial Innovation gathered today to actively back the government to realize our goal,” Chairman Shin said in closing.