Diplomats and business leaders gather in Seoul for FSC chairman’s economic outlook

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Diplomats and business leaders gather in Seoul for FSC chairman’s economic outlook

Published: 20 Mar. 2025, 17:04 Updated: 20 Mar. 2025, 18:21

CHO JUNG-WOO
[email protected]

Audio report: written by reporters, read by AI

Members of the diplomatic corps, business leaders and other dignitaries listen to a keynote address by Financial Services Commission Chairman Kim Byoung-hwan during the 2025 Korea Economic Forum at Lotte Hotel Seoul in Jung District, central Seoul, on March 20. [PARK SANG-MOON]

Members of the diplomatic corps and business leaders gathered in Seoul on Thursday to hear the Financial Services Commission (FSC) chairman’s analysis and outlook on Korea’s economy as the country navigates political uncertainty following President Yoon Suk Yeol’s botched martial law declaration last December.

FSC chief says impeachment verdict won't shake economy as court deliberations continue

Speaking at the 2025 Korea Economic Forum, Colombian Ambassador to Korea Alejandro Pelaez said the FSC chairman provided a “realistic” outlook on the country’s fiscal situation regardless of the outcome of Yoon’s trial, adding that it was important for the government to be “candid and transparent” given the current political climate.

Some 200 participants, including ambassadors, deputy heads of mission and representatives from dozens of countries, along with business executives from Korea’s major companies, attended the 19th annual forum hosted by the Korea JoongAng Daily at Lotte Hotel in central Seoul.

From left, Hana Bank CEO Lee Ho-sung, Financial Services Commission Chairman Kim Byoung-hwan and Korea JoongAng Daily CEO Park Chang-hee converse during the 2025 Korea Economic Forum at Lotte Hotel Seoul in Jung District, central Seoul, on March 20. [PARK SANG-MOON]

FSC chairman Kim, who previously served as vice minister of economy and finance, shared his perspectives on the future of Korea’s economy, as one of two keynote speakers on Thursday. Cho Sung-bae, a professor of computer science and engineering at Yonsei University and chair of the technology and innovation subcommittee under the presidential committee on AI, discussed Korea’s strategies for enhancing its competitiveness in the AI industry.

“I would have expected [Yoon’s] declaration of martial law and impeachment to have had more of an impact on the Korean economy,” Joana Barros, an economic and commercial counsellor at the Portuguese Embassy in Seoul, said.

“So I was surprised to see it performing better than expected.”

Ambassador of Serbia Nemanja Grbic speaks during the 2025 Korea Economic Forum at Lotte Hotel Seoul in Jung District, central Seoul, on March 20. [PARK SANG-MOON]

The FSC chief emphasized that while the Constitutional Court’s anticipated ruling on Yoon’s impeachment — whether upheld, rejected or dismissed — would have an effect on the country’s financial markets, the impact would be entirely “manageable.”

"The most interesting part was actually the FSC chairman's speech and the side point, that the strong US dollar and weak won is not necessarily bad for Korean exports because there are also inputs coming from abroad and so forth, which are then more expensive in the exchange rate," said Finnish Deputy Head of Mission and Minister Counsellor to Korea Antti Niemela.

During his speech, Kim said the recent depreciation of the won, with the exchange rate hovering above 1,400 won per dollar, is “not a situation concerned for risks,” though he stressed that the commission would make every effort to stabilize it.

Citibank Korea Head of Division Um Kyung-shik, center left, asks a question after a keynote address by Financial Services Commission Chairman Kim Byoung-hwan during the 2025 Korea Economic Forum at Lotte Hotel Seoul in Jung District, central Seoul, on March 20. [PARK SANG-MOON]

Executives from financial institutions also said the forum offered a valuable opportunity to gauge how closely other countries were following Korea’s economic situation.

“I have come to realize that many countries, such as those in Eastern Europe, are highly interested in our economy,” said Jung Jin-wan, CEO of Woori Bank, noting that an ambassador he spoke with was looking to draw comparisons between Korea’s economic circumstances and those of their own country.

Regarding Prof. Cho's presentation, ambassadors at the forum highlighted the value of its insights into Korea’s AI landscape, a topic they have been closely monitoring.

“What is specifically interesting for Switzerland is cooperation in AI and innovation because this is our main theme we are working [on] in Korea,” said Swiss Ambassador to Korea Dagmar Schmidt Tartagli.

She added that the two countries have been hosting Swiss-Korean Innovation Week annually, with this year’s event in May focusing on human augmentation.

Finnish Ambassador to Korea Jyri Jarviaho emphasized the potential for further AI collaboration between Korea and Finland, citing the talent pools in both countries and government programs Seoul offers to support AI development.

From left, Commercial Attaché of the Embassy of Cambodia Nuon Phanith, Counsellor of the Embassy of Portugal Joana Barros, Counsellor of the Embassy of Turkiye Ozlem Untez and Counsellor of the Embassy of Vietnam Do Thi Bich Ngoc pose for a photo during the 2025 Korea Economic Forum at Lotte Hotel Seoul in Jung District, central Seoul, on March 20. [PARK SANG-MOON]

Colombian Ambassador Pelaez stressed the need to consider AI’s environmental impact, a factor he noted was missing from Prof. Cho’s presentation.

“While AI has a significant economic outcome […] such as enhancing productivity, it could be contradictory to ESG goals, probably with a high cost on the environment,” he said.

Deputy Head of Mission of Norway Joon Grane Hetland, left, and Deputy Head of Mission of Slovenia Domen Petelin exchange greetings during the 2025 Korea Economic Forum at Lotte Hotel Seoul in Jung District, central Seoul, on March 20. [PARK SANG-MOON]

Serbian Ambassador to Korea Nemanja Grbic said the forum provided diplomats with a platform to better understand Korea’s economic and technological priorities.

“It was interesting to hear about foreign investments into Korea, but also Korean investments abroad, in the context of the economic difficulties and complex political situation that Korea is dealing with,” he said.

BY CHO JUNG-WOO [[email protected]]