Session
In the Era of Conflicts, the Future of International Finance and Cooperation Among Northeast Asian Countries
Time- 13:30 ~ 14:50
Organization- Cheju Halla University
Room- Samda
Speaker
Global finance is facing a turning point in 2022. As the Federal Reserve is pre-emptively increasing interest rates and has begun tapering, the era of long-term low-rate interest periods is coming to an end. This year will see the beginning of a slow withdrawal of the massive liquidity that has accumulated over time. Given the forecasted strong dollar, countries that are not prepared for an outflow of funds are expected to face a sharp devaluation of their currencies. As Korea raises interest rates while China and Japan maintain low interest policy, the consequent currency adjustments may evoke carry trade among countries in this region.
Secondly, a new cold-war era has arrived following the Russian invasion of Ukraine. While Korea and Japan accused Russia on this matter, opposite to the Chinese position and as U.S.A. makes the technology coalition with Korea and Japan to isolate China, new tension arouses in this region. Conflict among three countries may accelerate the currently deepening economic recession through the supply-chain disruption.
Thirdly, there is a trend towards consumers of financial products in the post-pandemic era, particularly millenials and Generation Z, to work from home and conduct finance through the social media companies that they have become so familiar with. It is no exaggeration to say that the traditional financial industry is rushing into a competition to decide whose platforms will be used by these consumers. The situation calls for a revolution in the rapid creation of new streams of revenue by traditional financial companies in the face of changes to economic structures, while reducing costs and maintaining market share.
Fourthly, if finance doesn't take a leading role in solving environmental, social and governance problems, an unsustainable future has already arrived. Nuclear power plants will inevitably take on a more important role in the effort to eliminate all carbon emissions by 2050. East Asia in particular must take concrete steps to ensure the safety of nuclear power plants.
Finally, attention is also being drawn to cryptocurrencies built on block-chain technology, CBDC, cyber terrorism, and the monopoly on consumer data by big tech companies and their ability to use it in an unrestricted financial industry. These issues call for inter-governmental discussion.
Secondly, a new cold-war era has arrived following the Russian invasion of Ukraine. While Korea and Japan accused Russia on this matter, opposite to the Chinese position and as U.S.A. makes the technology coalition with Korea and Japan to isolate China, new tension arouses in this region. Conflict among three countries may accelerate the currently deepening economic recession through the supply-chain disruption.
Thirdly, there is a trend towards consumers of financial products in the post-pandemic era, particularly millenials and Generation Z, to work from home and conduct finance through the social media companies that they have become so familiar with. It is no exaggeration to say that the traditional financial industry is rushing into a competition to decide whose platforms will be used by these consumers. The situation calls for a revolution in the rapid creation of new streams of revenue by traditional financial companies in the face of changes to economic structures, while reducing costs and maintaining market share.
Fourthly, if finance doesn't take a leading role in solving environmental, social and governance problems, an unsustainable future has already arrived. Nuclear power plants will inevitably take on a more important role in the effort to eliminate all carbon emissions by 2050. East Asia in particular must take concrete steps to ensure the safety of nuclear power plants.
Finally, attention is also being drawn to cryptocurrencies built on block-chain technology, CBDC, cyber terrorism, and the monopoly on consumer data by big tech companies and their ability to use it in an unrestricted financial industry. These issues call for inter-governmental discussion.
