Eun Sung-soo: "Financial Investment Firms Will Have Their IB Roles Properly Regulated"

[Asia Economy Reporter Park Jihwan] Eun Seong-su, Chairman of the Financial Services Commission, emphasized on the 2nd that related systems will be improved so that financial investment companies can faithfully perform their original role as investment banks (IBs).

On the same day, at the '2020 Securities and Derivatives Market Opening Ceremony' held at the Conrad Seoul Hotel in Yeouido, Chairman Eun stated, "We will boldly improve related systems so that the functions of investment banks (IBs) that discover promising companies that can grow through the capital market, directly invest, and support and manage the listing (IPO) of such companies can be substantially strengthened."

He said, "First, we plan to ease the capital regulation (NCR) burden on IBs and greatly expand the autonomy of lead underwriters," adding, "At the same time, we plan to refine necessary regulations to prevent IBs from being excessively absorbed in real estate-related operations."

Chairman Eun emphasized, "The fundamental role of the capital market is the smooth supply of funds to companies," and added, "We will thoroughly review the crowdfunding system and actively support companies to raise funds according to their growth stages through BDCs (Business Development Companies) and private fundraising systems."

Furthermore, he added that an environment will be created where various financial products such as foreign currency-denominated MMFs, overseas stock-linked ETNs, and foreign currency-denominated ETFs can be launched to accommodate the rapidly increasing demand for direct overseas stock investment domestically.

Chairman Eun also stressed the restoration of trust in the capital market.

He stated, "The root of the capital market is investor trust," and said, "We will faithfully implement follow-up measures for DLF, strengthen sanctions against unhealthy market practices, and foster trust in investor protection and market order."

He added, "Under the theme of 'Back to the Basics,' the Financial Services Commission will carry out capital market policies in 2020."

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