Korean and Japanese Financial Authorities Promote Digital Transformation Cooperation to Strengthen Response to Financial Uncertainties

Source: TokenPost Original Title: South Korean and Japanese Financial Authorities Jointly Respond to Digital Transformation… Strengthening Cooperation Amid Financial Uncertainty Original Link: The financial authorities of South Korea and Japan held a meeting in Busan on December 8, jointly emphasizing the common challenges faced by the financial systems of both countries amid changes in the global economy and digital transformation, and reached a consensus on the necessity for a joint response.

The 9th Korea-Japan Financial Supervisory Regular Meeting was attended by Lee Eok-won, Chairman of the Financial Services Commission of Korea, Lee Chan-jin, President of the Financial Supervisory Service, and Ito Hiroya, Director-General of Japan’s Financial Services Agency. This annual high-level meeting, co-hosted by the Korean Financial Services Commission and the Financial Supervisory Service, aims to further strengthen the ongoing cooperation framework for financial governance between the two countries.

The main topics of this meeting focused on two areas. First was the impact of global economic and financial market uncertainty on the financial sectors of both countries and corresponding policy responses. Second was the development of supervisory systems and financial consumer protection as part of the adaptation to digital financial transformation—a new challenge. In particular, both parties recognized the importance of rapid and efficient coordination in the face of increasing financial market volatility.

At the meeting, Lee Chan-jin, President of the Financial Supervisory Service, shared examples of ongoing capital market institutional reforms in both countries, including corporate governance reforms and the strengthening of fiduciary duties for institutional investors. Addressing the issue of financial consumer protection amid the spread of digital finance, he highlighted the necessity for joint response and stressed that collaboration between financial supervisory authorities is becoming increasingly important.

Ito Hiroya, Director-General of Japan’s Financial Services Agency, referred to the trend of digital transformation, stating that it should be leveraged as a shared growth opportunity. He specifically pointed out that continued close cooperation between Korea and Japan in the face of technology-driven changes in the financial environment could generate positive synergies for both countries.

On the same day in Busan, the 10th International Financial Cooperation Forum was held under the theme “Digital Transactions and Smart Terrain Reshaping.” At the forum, the Financial Services Commission introduced the application of artificial intelligence technology in Korea’s financial industry, the Japanese Financial Services Agency presented its regulatory trends for virtual assets, and the Financial Supervisory Service shared its risk management framework for artificial intelligence in the financial sector, with a focus on building supervisory systems aligned with global standards.

This trend indicates that, as digital financial services become increasingly established, how quickly existing regulatory systems can respond to real-world challenges has become a core issue for financial authorities in each country. It is expected that Korea-Japan financial cooperation will continue to serve as an important pillar for the stability and mutual growth of the Asian financial market.