Na Jae-cheol, Chairman of the Korea Financial Investment Association, "Crisis is an Opportunity, Expecting the Second Leap of the Capital Market"

[Asia Economy Reporter Oh Ju-yeon] "I will play an active role as a negotiator and mediator for market-friendly institutional improvements."

On the 2nd, Na Jae-cheol, the newly elected 5th president of the Korea Financial Investment Association, said in his inauguration speech, "While the association has focused on its role as a coordinator, from now on, we will go beyond simply listening to opinions and conveying messages between parties. We will proactively consider alternatives and actively persuade member companies and the government to present policies that both sides can accept in advance."

He emphasized that the domestic capital market has developed centered on banks and has been unfavorable to discovering new businesses, resulting in slower growth compared to other advanced financial countries. He stated that going forward, the association will strengthen its role in developing and discovering new investment products and in the stable operation and management of assets. He also mentioned that efforts will be made to restore the fallen trust in the industry.

Below is the full text of the inauguration speech.

◆Inauguration Speech

I am pleased to meet you as the 5th president of the Korea Financial Investment Association. First, through this opportunity, I would like to express my deep gratitude and condolences to the late Chairman Kwon Yong-won, who devoted himself to our industry with high ideals and passionate enthusiasm. I also thank the financial investment industry and association executives and staff who have worked together for the development of our capital market over the past two years.

Over the past year, our capital market experienced a rollercoaster year. Externally, the US-China trade conflict intensified, the inversion of the US Treasury yield curve for the first time in 12 years spread fears of a recession, and global anti-government protests, including in Hong Kong, increased market uncertainty. Internally, various economic indicators worsened, and the stock index remained in a box range, while concerns about the private equity fund market, such as DLF investment damages, also emerged. However, despite these challenging internal and external conditions, some achievements were made.

In the first half of the year, together with the Capital Market Activation Special Committee, we proposed various institutional improvements for the development of the capital market as an innovation growth partner and a companion for national retirement security and asset management. We led the reduction of securities transaction tax for the first time in 23 years, taking the first step toward capital market tax reform, including income offsetting and loss carryforward. In addition, we promoted the introduction of systems to prepare for the aging era, such as fund-type and default options and retirement pension yield improvement plans. We also sought to secure the international competitiveness of the asset management industry through the Asia Fund Passport and laid the groundwork for market-friendly regulatory improvements by introducing principle-based regulations in some areas, including the Chinese Wall.

The status of the financial investment industry has risen compared to before, and the external image of the capital market has greatly improved, but many still speak of a market crisis. However, as always, crisis and opportunity come together.

Our association has served as a bridge, representing member companies over the past few years to convey industry opinions to financial authorities for market-friendly institutional improvements and to maintain communication channels with the government and the National Assembly. While the association has focused on its role as a coordinator, I want to emphasize a more proactive, active, and preemptive role as a negotiator and mediator. If we go beyond simply listening to both sides and conveying messages and instead proactively consider alternatives and actively persuade member companies and the government to present policies that both sides can accept in advance, we will be able to draw a concrete blueprint that satisfies both the government and member companies. I am well aware of how much the association’s executives and staff have communicated with the industry and worked for institutional improvements. Based on past efforts and experience, I have no doubt that our organization can fully perform such a role.

Our capital market has shown slower growth compared to other advanced financial countries due to financial policies centered on banks, a regulatory environment unfavorable to discovering new businesses, and the formation of an immature investment culture. However, as the low-growth, low-interest, and aging phase continues, the role of the capital market in developing and discovering new investment products and in the stable operation and management of assets will inevitably become more important.

To strengthen this role of the capital market, we must steadily pursue tasks such as ▲establishing an investment environment that contributes to increasing national assets, including the introduction of fund-type retirement pensions and the advancement of capital market taxation ▲securing the future capabilities of the capital market by creating a financial ecosystem that actively discovers venture investments and innovative companies ▲expanding channels for member companies to propose changes in the regulatory policy line, which has been focused solely on regulations for the overall market, including private equity funds, real estate trusts, and project financing ▲simultaneously promoting measures to eradicate mis-selling through market-centered preemptive self-regulation and to improve financial authorities’ and the public’s financial literacy.

Separately, we must listen more, think more, and work harder to restore the fallen trust in the industry.

It is a great honor to be given the opportunity to serve the capital market, which I have been part of for 35 years and which has been my lifelong companion. However, I also fully understand that the weight of the position of president of the Korea Financial Investment Association is by no means light.

We have experienced many ups and downs both internally and externally over the past year. Now is the time to embrace the spirit of Je-gu-po-shin (除舊布新, "discard the old and bring in the new") and move forward in a new direction.

I will do my best to make the association an efficient organization centered on supporting member companies, an organization that pursues swift decision-making and cost efficiency, and an organization where a culture of passion, communication, and change is established. To this end, I will sometimes run at the forefront myself and sometimes listen sincerely to your stories. If we insist only on organizational stability, we cannot overcome the current crisis, and to transform into a dynamic organization, all members must have a sense of ownership and unite with one heart and mind. I will strive for leading value creation through performance-oriented and predictable personnel management and aim to create innovative plans for mutual win-win between companies and employees through innovation task forces involving member companies.

I will run with a spirit of Jagangbulsik (自强不息, "self-strengthening without rest") so that the capital market can grow to the next level and achieve a second leap, becoming an organization that contributes not only to industry profits but also to corporate growth and the national economy. It will not be an easy path, but I am willing to walk it together with you. I wish success to our industry and all association executives and staff. Thank you.

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