Kwon Dae-young Stresses Shift to 'Productive Finance' to Drive Sustainable Growth

(Seoul=Yonhap Infomax) Won Jung – Kwon Dae-young, Vice Chairman of the Financial Services Commission (FSC), reiterated the need for South Korea’s financial sector to move away from its traditional focus on real estate and collateral-based lending, and instead lead the way in fostering sustainable growth through a transition to productive finance.

Speaking at the Financial Industry Committee general meeting hosted by the Korea Chamber of Commerce and Industry at the Westin Chosun Hotel in Seoul on the 25th, Kwon stated, “Transitioning to productive finance means redirecting financial flows from real estate to advanced, innovative, and venture companies, from deposits to the capital markets, and from the Seoul metropolitan area to regional economies.”

Kwon further emphasized, “What matters is not a superficial focus on quantitative results—so-called ‘nominal productive finance’—but a fundamental restructuring of the financial system.”

Jin Ok-dong, Chairman of the Financial Industry Committee at the Korea Chamber of Commerce and Industry, echoed similar concerns in his opening remarks. Jin said, “Productive finance is a defining keyword signaling a shift from the old financial paradigm. The financial sector has long relied on interest-based business and real estate-backed lending, and must reflect on criticisms that it has failed to adequately support the growth of future industries.”

He added, “The financial sector should diversify portfolios that are currently concentrated in specific areas, expanding into national strategic industries, promising future sectors, and innovative ventures, thereby pursuing co-growth with the real economy.”

The meeting was attended by more than 40 business leaders, including Kim Shin, Vice Chairman of SKS Private Equity; Hong Won-hak, President of Samsung Life Insurance Co.; Oh Tae-kyun, President of Korea Investment Holdings; Choi Seung-hoon, Executive Vice President of Samsung Electronics Co.; Kim Ki-dong, Executive Vice President of SK Inc.; Kim Dong-wook, Executive Vice President of Hyundai Motor Co.; Yang Won-jun, Executive Vice President of POSCO Holdings; and Shin Yong-in, Executive Vice President of Hanwha Corp.

jwon@yna.co.kr

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