The Financial Services Commission (FSC) hosted a New Year’s reception for the financial industry at Lotte Hotel on Jan. 3 with hundreds of leaders of financial institutions in attendance led by FSC Chairman Kim Seok-dong.

The chairman said in his New Year’s address at the gathering, “The year 1953 was the Year of Snake, the year the Korean War ended, and Korea has made enormous progress over the past 60 years. Korea’s economy has expanded 35 times, while the world economy expanded only seven times, bringing Korea into the ranks of the top 10 countries in the world in terms of economic scale. 

“It is a miraculous growth that is not easily found in the history of the world, even surpassing those of Spain and the Netherlands in the 16th and 17th centuries, the 18th century in England and the 19th and 20th centuries for the United States and Japan.”

“I think a number of key factors worked in our favor in creating this miraculous economic growth. As every one of you knows quite well, it was the diligent and excellent labor force, first, the steady accumulation of technologies, and the effective mobilization of capital.”

“In addition to these factors, the choice for external growth and concentrated strategies to back it up and the DNA of the Korean people with their strong desire to achieve their objectives have also played key roles in the astounding economic development.”

“All of you financial people who are here this evening have done your given assignments by leading the financial industry to help the Korean economy get to where it is today.”

“I would like to thank every one of you here for playing a part in making the financial market and the financial industry what they are today.”

“In the new year, we are expected to face many uncertainties both at home and abroad with the global economic slowdown and tough financial conditions expected to persist.”

“The problems our economy will face are excessive household debts, the easing of the extreme gap between the rich and the poor, the creation of jobs, and the construction of a social safety net, all of them structural.

“What should be noted is that we are in a period during which the paradigm of a capitalist economy is being transformed. The reservation on market principles and quantitative easing is being led to a new paradigm of capitalism.”

“Accordingly, we are to cope with uncertainties effectively and, at the same time, create a new paradigm as tasks we are to face this year. I would like to suggest a number of ideas, as much as the new government will adopt new financial policies in coping with both internal and external conditions that are projected to occur this year.”

“First, the government must preserve the health of the financial industry no matter what. The global financial crisis and the European debt crisis threatened the soundness of the Korean financial market, but the market overcame them with its sound bases it had solidified over the years.”

“But the government will continue to maintain its readiness to deal with any other kinds of threats to the financial market so that its achievements will not become useless.”

“Financial development can only come when both the financial market and the financial industry are sound. Second, the government will back up the financial industry to do its given role in the economy as faithfully as it can and take deep root as a new growth engine for Korea through various policies.”

“Third, the government will be intensive in its efforts to change the economic paradigm by taking even preemptive measures if has to. Our activities will focus on resolving the financial problems for SMEs and the people by protecting financial consumers in a bid to improve the quality of economic growth. Protecting financial consumers and extending support to the financially weak will be a great help in boosting the health of and trust in the financial industry, as they will in the long run make the industry strong.”