South Korea's Ministry of Economy and Finance jointly hosted the 2026 Group of 20 (G20) Global Financial Stability Conference with the Korea Development Institute in Seoul. In opening remarks, Second Vice Minister Heo Jang proposed three policy priorities: managing financial risks from artificial intelligence (AI), preserving fiscal capacity to absorb future shocks, and combining global financial safety nets with stronger supply chain resilience. The AI risks identified included increasingly synchronized decisions by financial institutions, cyber threats and high leverage among AI companies. Concerns over those companies' profitability could trigger asset price corrections that spread across financial markets. The proposed response centered on stronger AI governance and risk management, drawing on Financial Stability Board best practices presented in October. Those practices include clear human oversight responsibilities and management of risks arising from reliance on third parties. Monitoring would also need to address the potential transmission of volatility in AI investment to the wider financial system. The broader policy approach called for assessing systemic risks arising from connections between financial institutions alongside the soundness of individual firms. Targeted fiscal support for vulnerable groups would help preserve policy capacity, while investment would focus on AI infrastructure and future industries. A proposed “dual safety net” would combine protection against external financial shocks with supply chain arrangements designed to prevent shortages of critical goods from spreading into wider economic disruption. Multilateral cooperation on an open, predictable trade and investment environment would complement these measures.

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