CEO of a global financial company “There is no concern about the soundness of the Korean financial system on Wall Street”

Amid concerns about a global banking crisis following the bankruptcy of Silicon Valley Bank (SVB) in the United States, global financial institutions were found to be positively evaluating the current situation in the Korean economy and financial market. CEOs of global financial companies talked about plans to expand long-term investments in Korea.

However, CEOs warned that factors such as fragmentation, national debt, and a credit crunch could be risks to the global financial market in the future.

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CEO of a global financial company “I have never heard of concerns about the soundness of the Korean financial system on Wall Street”

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Deputy Prime Minister and Minister of Strategy and Finance Choo Kyung-ho held a series of meetings in New York on the 10th and 11th (local time) with John Gray Blackstone, president and chief operating officer, Robin Beans, CEO Mellon Bank of New York , and David Solomon, CEO of Goldman Sachs.

It has been about six years since former Deputy Prime Minister and Minister of Strategy and Finance Yoo Il-ho met Citigroup CEO Michael Kobat in 2017 that the Deputy Prime Minister had a one-on-one meeting with CEO of a major global financial company. .

At a meeting of global CEOs, all of them agreed that they had not heard of concerns about the soundness of the Korean financial system on Wall Street recently. At the same time, he said he plans to expand long-term investment in Korea.

These CEOs also showed great interest in the Korean government’s plan to promote the capital markets and foreign exchange. Abolishing the foreign investor registration system, opening the domestic foreign exchange market to the outside world, and extending trading hours are expected to have a positive impact on the revitalization of Korea’s capital and foreign exchange markets.

It is explained that Korea’s improved access to foreign investors based on its high growth potential and efforts to stabilize its supply chain in the medium to long term will attract foreign investors who want to expand their Asian portfolios.

At the same time, he promised to play an active role so that the Korean government’s policy efforts can be widely shared with global investors.

Deputy Prime Minister Chu said, “The long-term interest and investment in Korea by major global financial institutions has been an important factor in Korea-US economic and financial cooperation. “We will actively reflect it,” he emphasized.

With regard to the recent disruptions in the banking sector, such as the SVB incident, global CEOs agreed that the possibility of expansion into systemic risk is limited. It was evaluated that the current situation is a problem arising from the mismatch between the assets and liabilities of a specific bank, and that the policy authority’s prompt response stabilizes the banking industry quickly.

Regarding concerns about commercial real estate loan insolvency raised by some, he explained that it was a problem confined to the office real estate sector, where vacancies increased due to the expansion of telecommunications.

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“Factors such as fragmentation, national debt, and the credit crunch can act as global risks”

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However, CEOs were concerned that the three main factors, △ fragmentation △ national debt △ credit crunch, could lead to US and global economic and gold risks in the future.

In particular, in the process of responding to Corona 19 (COVID-19), national debt increased in major countries, including Korea.

Deputy Prime Minister Choo said, “I could hear the live conditions of the US and international financial market and risk explanations on Wall Street.” The government will be watching carefully because (the risk) will be spread out.”

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On the occasion of the 70th anniversary of the ROK-USA alliance, a meeting was held with William Rose, former vice-chairman of Citigroup, who greatly contributed to economic and financial cooperation between the two countries.

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Meanwhile, Vice Premier Chu met with former Citigroup Vice Chairman William Rose (currently CEO of Global Advisors) on his first schedule in New York before meeting with global CEOs.

During the Asian financial crisis in 1998, former Vice Chairman Rose led the negotiations on extending the maturity of short-term foreign debts from domestic banks as chairman of the International Bond Commission, and was recognized for his contribution to the negotiations. During the 2008 global financial crisis, he played a role as a hidden contributor to the Korea-US currency swap agreement.

On the occasion of the 70th anniversary of the ROK-US alliance, Deputy Prime Minister Choo thanked former Vice Chairman Rose for his contributions. Deputy Prime Minister Choo emphasized, “Trust and solid cooperation between the two countries has become the foundation for the development and maturity of our economy.”

In response, former Vice Chairman Rose said, “Since Korea has excellent experience in overcoming past crises based on its strong national character, it will respond well to recent global uncertainties such as expanding geopolitical risks and fragmentation.” the global economy.” Expanding global demand and relocation of production facilities by global companies could be an opportunity factor for Korea.”

[저작권자 @머니투데이, 무단전재 및 재배포 금지]