Nae Jae-cheol, Chairman of the Korea Financial Investment Association, "We will strive to concretely achieve the four major tasks"

Nae Jae-cheol, Chairman of the Korea Financial Investment Association, is giving opening remarks ahead of a press conference held at a restaurant in Yeouido, Yeongdeungpo-gu, Seoul on the 9th. Photo by Jinhyung Kang aymsdream@

[Asia Economy Reporter Kum Boryeong] "I believe there are four major tasks facing the financial investment industry. We will strive to realize these through more concrete policies."

On the 9th, Na Jaecheol, Chairman of the Korea Financial Investment Association, made this statement at a New Year's press briefing held in Yeouido, Yeongdeungpo-gu, Seoul.

The four major tasks identified were discovering and providing various financial investment product solutions that other industries cannot offer, raising venture capital to nurture companies related to innovative industries, developing new businesses, and transforming the financial investment industry into a global industry.

First, regarding venture capital, plans are in place to support the enhancement of investment banking (IB) capabilities, such as the NCR system, to expand venture capital through securities firms, which are key financial intermediaries. Securities firms supplied over 21 trillion won in funds to small and innovative companies through the capital market in 2018. Expansion of individual venture capital investment using Business Development Companies (BDC), which allow general investors to indirectly invest in innovative venture companies, will also be promoted.

To transform the domestic financial investment industry into a global industry, the overseas investment infrastructure of securities firms will be improved. Support will be provided for the passage of legislation in the National Assembly allowing credit extensions to overseas subsidiaries of comprehensive financial investment business operators, and the efficiency and systems of foreign currency securities brokerage operations will be reviewed and improved to support the globalization of brokerage services.

At the briefing, Chairman Na expressed his views on the government's real estate project financing (PF) regulations. He said, "The government's PF regulations are seen as a measure to address concerns about excessive real estate investment concentration and to expand funding channels into productive sectors. It is necessary to consider that securities firms still play an essential role in converting direct real estate investment demand into indirect investment, which is one of the government's policies." He added, "Rather than simply opposing the government's real estate regulations, we will work with the government to seek 'sound development plans for real estate finance' that consider the national economy and investor protection."

He also emphasized the advancement of capital market taxation. He expressed his determination to ensure the smooth progress of capital market tax modernization to support national asset management and the supply of venture capital. Priority will be given to converting stock transaction taxes into a capital gains tax system, allowing comprehensive offsetting of gains and losses across financial investment products, and introducing loss carryforward deductions.

Regarding improvements to the retirement pension system, such as the introduction of fund-type retirement pensions and default options, Chairman Na stated, "Currently, the retirement pension has a low fixed return rate, with a five-year average annual return of only 1.9% as of 2018. This is insufficient for preparing for citizens' retirement, and the capital market must strengthen its role in supporting retirement preparation." He explained, "Last year, the National Assembly's Environment and Labor Committee proposed bills related to fund-type retirement pensions and default options. The association will support legislative amendments and work to establish a virtuous cycle structure where workers' retirement assets grow through the capital market."

Chairman Na also mentioned the association's role amid recent market turmoil caused by the conflict between the United States and Iran. He said, "If the geopolitical tensions stemming from Iran intensify and continue to affect the stock market and others, I will promptly take measures as chairman to stabilize the market."

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