Ji-won Jeong, Chairman of Korea Exchange, "Establishing Innovative Finance through Challenge, Communication, and Trust"

2020 Securities and Derivatives Market Opening Ceremony Held

Eun Sung-soo, Chairman of the Financial Services Commission (third from the left), and Jung Ji-won, Chairman of the Korea Exchange (third from the right), along with other officials, are conducting a commemorative event at the opening ceremony of the 2020 Securities and Derivatives Market held on the 2nd at the Conrad Hotel in Yeongdeungpo-gu, Seoul.

[Asia Economy Reporter Minwoo Lee] Jung Ji-won, Chairman of the Korea Exchange, announced plans to clearly reform the complex entry requirements system for the KOSDAQ market and to establish 'innovative finance' through Business Development Companies (BDC) and other means.

Chairman Jung emphasized this at the 2020 Securities and Derivatives Market Opening Ceremony held on the 2nd at the Conrad Hotel in Yeouido, Yeongdeungpo-gu, Seoul. He declared the Korea Exchange's core values for this year as challenge, communication, and trust.

While establishing innovative finance through challenge, he plans to prevent instability factors such as the recent Lime Asset Management Ponzi scheme allegations and create a stable investment ecosystem through communication and trust.

First, he stressed creating an environment where innovative companies can receive reasonable valuations and timely funding. He said, "We will clearly reform the complex KOSDAQ market entry requirements system focusing on the future growth value of companies, and help ensure that the abundant liquidity in the listed market is sufficiently provided to unlisted companies through the BDC promoted by the government."

He also mentioned plans to devise ways to achieve high returns in a continued low-interest-rate environment. Chairman Jung stated, "We will steadily expand income-type Exchange Traded Products (ETPs) based on REITs (Real Estate Investment Trusts), bonds, and high-dividend stocks, and supply various global products to facilitate easy access to overseas assets."

He plans to explore transparent and safe trading methods, including mentioning recently controversial structured securities. Chairman Jung said, "We will prepare comprehensive countermeasures against new types of unfair trading, eradicate market disruption activities using algorithms and high-frequency trading (HFT), and intensively monitor political theme stocks and illegal short selling ahead of the general election. Additionally, we plan to operate the Trade Repository (TR), which stores over-the-counter derivatives transaction information in a database (DB) and reports it to supervisory authorities, without delay within this year."

Furthermore, he decided to expand information related to Environmental, Social, and Governance (ESG). Chairman Jung explained, "We will improve the quality of the current corporate governance reports and newly propose disclosure plans for Environmental and Social information." Other initiatives include ▲a dedicated section for Socially Responsible Investment (SRI) bonds and related disclosure information ▲translation services for foreign investors.

Chairman Jung said, "Even in difficult domestic and international environments, we cannot afford to shrink or be afraid," adding, "When the wind does not blow, the way to turn the windmill is to run by ourselves, so we will create various driving forces to serve as the primer for our economy."

This content was produced with the assistance of AI translation services.