South Korea Financial Services Commission and Japan Financial Services Agency reaffirm cooperation on digital finance and capital markets at 9th shuttle meeting

South Korea’s Financial Services Commission (FSC) and Financial Supervisory Service (FSS), together with Japan’s Financial Services Agency (FSA), released a joint readout of the Ninth Regular Korea-Japan Financial Shuttle Meeting held in Busan on December 8, alongside a joint session at the 10th International Financial Cooperation Forum (IFCF). The authorities reviewed recent global macroeconomic and financial developments, aligned on the direction of priority policy agendas, and reaffirmed their intent to deepen bilateral regulatory and supervisory cooperation. Discussions covered enhancing high-level dialogue to support timely coordination on regional financial stability and shared policy priorities, including capital market development, financial sector digitalization, and responses to aging populations. The authorities also exchanged updates on capital market reforms, including corporate governance improvements, stronger fiduciary duties for institutional investors, and measures to advance the asset management industry, and discussed common supervisory challenges such as consumer protection and risks associated with digital finance innovation. At the IFCF joint session themed “Regulatory Frontiers in a Digital Era,” representatives outlined initiatives related to artificial intelligence and digital assets, including approaches to managing AI-related risks in finance. The three authorities agreed to reconvene for the 10th Regular Korea-Japan Financial Shuttle Meeting, planned to be held in Japan next year. The IFCF programme also envisaged individual meetings between foreign attendees and members of the Council on International Financial Cooperation from December 9 to explore further areas of cooperation.