[2020 National Audit] Yoon Seok-heon "Securities Firms' Reports Filled with Buy Recommendations... Need for System Improvement Measures"

[Image source=Yonhap News]

[Asia Economy Reporter Park Ji-hwan] Yoon Seok-heon, Governor of the Financial Supervisory Service, on the 13th, regarding the fact that domestic securities firms mainly issue buy reports, stated, "The role of reports is to provide appropriate information to consumers," and pointed out, "Opinions on both buy and sell should be given according to the purpose."

Governor Yoon made this remark in response to a related inquiry by Lee Jung-moon, a member of the Democratic Party of Korea, during the Financial Supervisory Service's audit held by the National Assembly's Political Affairs Committee that evening.

According to Representative Lee, among approximately 78,000 reports issued by domestic securities firms over the past three years, only 55 reports contained 'sell' opinions.

Regarding this, Governor Yoon Seok-heon said, "This is a disappointing figure in many ways," and criticized, "Although this issue has been raised in the financial sector for a long time, it is not easily corrected."

Representative Lee urged, "It is necessary to significantly strengthen supervision related to securities firms' investment opinion reports and to make the penalty regulations a bit more sophisticated," to which Governor Yoon emphasized, "I will work with the Financial Services Commission to create a more effective system."

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