Eun Sung-soo "Actively Responding to the COVID-19 Crisis... Focusing on Restoring Investor Confidence"

2021 Securities and Derivatives Market Opening Ceremony

[Asia Economy Reporter Minji Lee] "Despite the challenges posed by the novel coronavirus disease (COVID-19) crisis last year, we were able to promptly contain the economic shock through proactive and bold market stabilization measures and macroeconomic policies. Therefore, this year as well, we will do our utmost to expand the investment base and restore investor confidence to create a positive market environment."

Eun Sung-soo, Chairman of the Financial Services Commission, made these remarks on the 4th while attending the opening ceremony of the securities and derivatives market. He stated, "As the COVID-19 situation is lasting longer than expected, we may need to prepare additional support measures or gradual normalization depending on the economic flow," adding, "We will remain vigilant and thoroughly respond to any potential market instability." This means that the financial stability measures exceeding 175 trillion won and the Korean New Deal policy worth over 170 trillion won announced last year will be appropriately implemented according to the market environment.

He also expressed his intention to continue institutional improvements such as reforming financial investment taxation, rationalizing credit loan interest rates, and expanding participation in initial public offerings (IPOs) in response to the increased participation of individual investors in the market. Chairman Eun emphasized, "To expand the investment base, institutional investors should play an active role befitting their status in supporting stock market growth and stability," and added, "We will enhance the attractiveness of the capital market to redirect overseas investment demand domestically and prepare multifaceted policy support such as promoting early listings of promising industries including New Deal, ESG, and new product development."

He also indicated plans to strengthen investor protection to prevent financial fraud similar to the Lime and Optimus private equity fund scandals. Chairman Eun said, "We will spread awareness that illegal activities will definitely be detected and punished, and increase the effectiveness of sanctions by introducing fines for unfair trading," and asserted, "We will ensure that the 'Financial Consumer Protection Act' and the 'High-Risk Financial Product Investor Protection Measures,' scheduled to be implemented this year, are well established in the market."

Finally, he expressed his determination to establish a virtuous cycle between finance and the real economy so that the abundant liquidity concentrated in the financial market flows smoothly into the real economy. He explained that a comprehensive support system for innovative companies will be established using policy finance and New Deal funds. Chairman Eun stated, "We will ensure that the policy-type New Deal fund, which will be fully operational in March this year, leads to substantial investment," and added, "We will review the actual operational performance of the systems introduced to revitalize corporate finance related to the financial investment industry and promote necessary institutional improvements."

He continued, "I hope this year will be a year to consider orderly normalization without the need for further economic quarantine," and added, "I expect our stock market to become a reliable investment destination that gives hope to the public based on solid corporate and economic performance."

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