choongsoo kim : new role of central bank and regional financial cooperation after the global crisis opening address by mr choongsoo kim, governor of the bank of korea, the 47th seacen governors ’ conference, high - level seminar and the 31st meeting of the seacen board of governors, seoul, 13 february 2012. * * * distinguished governors, ladies and gentlemen, i would like to express my gratitude to all my fellow central bank governors for taking part in the 47th seacen governors ’ conference, high - level seminar and the 31st meeting of the seacen board of governors. my special thanks go to 5 distinguished speakers, mr. pier carlo padoan, deputy secretary - general of oecd, mr. stephen p. groff, vice - president of the adb, professor charles engel from university of wisconsin, mr. hannoun from bis and mr. chia from imf who have come from afar to deliver the keynote addresses. it is a great honor and pleasure for us to be hosting the seacen governors ’ conference in seoul again after 13 years. though i stand before you today as the representative of the bank of korea, i bid you welcome on behalf of all the korean people. in the wake of the global financial crisis, emerging market countries recovered faster than the advanced countries. however, the increasing uncertainties surrounding the world economy since then still pose a threat to the asian economies. at this juncture, we should learn the lessons of the global financial crisis. this means setting the financial infrastructure right and establishing an effective policy response system in order to ward off further crises by speeding up global economic recovery. i think now is the time to change the policy stance and also strategies. global financial resources may have in recent years been directed toward financing of unsustainable financial deficits and debt - ridden countries, and little toward growth and job creation. i believe that redirecting of financial resources more toward growth, and more specifically toward countries with high productivity could yield substantial benefits to all in the long run. this is why i see a greater role for asia going forward. asia overcame the global financial crisis well, and has remained resilient to negative spillover from ongoing crisis in europe. moreover, many expect asia to develop even more into an engine of global economic growth. if we look at the outbreak and spread of the global financial crisis and the policies adopted in response, we can draw many precepts and pointers as to the role

+ 3 and emeap have recently stepped up their cooperation in promoting regional financial market development and stability, by drawing up joint response plans, such as the launch of the cmim, to tackle such financial crises, and by seeking ways to foster regional financial market development and improve macroprudential frameworks. to my mind, the best way for asian economies, which are vulnerable to external shocks, to expand their mutual economic interests is to strengthen their collective response by making integration of their real economies, by way for example of ftas and the setting up of regional financial safety nets. meanwhile, the establishment of policies within the asian region and within individual regional countries should be in line with the reforms underway in the international financial architecture. amid the increased possibility of systemic risk, where shocks arising from certain financial institutions or markets spread rapidly due to the heightened financial interconnectedness, financial stability cannot be achieved based solely on policies of individual countries, unless accompanied by international cooperation. above all, in order to regulate the financial market, where globalization has progressed the most, we should participate energetically in networking among central banks around the world, thereby strengthening international cooperation in regard to macro - prudential policies. closing remarks while undergoing the bitter experience of previous financial crises, asian countries at least profited from them in drawing lessons that, i believe, greatly helped them see off the global financial crisis successfully. although we are not at the epicenter of the ongoing global financial crisis and euro area sovereign debt crisis, we should also take them as object lessons. above all, i hope that we can look to a brighter future as the dark shadows shrouding the world economy fade this year, blown away by the energy of the black dragon which is believed to rule the dark. i wish the best of luck throughout this year to all of our seacen member economies and our partners around the world. thank you very much for listening! bis central bankers ’ speeches