Na Jae-cheol, Chairman of the Korea Financial Investment Association, "Stock Market Has Ample Room to Rise"

Jaecheol Na, Chairman of the Korea Financial Investment Association

[Asia Economy Reporter Junho Hwang] "I believe there is still ample room for growth."

On the 3rd, Na Jae-cheol, Chairman of the Korea Financial Investment Association, commented on the recent stock market, saying, "I think the KOSPI reached 3200 due to liquidity and improved corporate earnings." He added, "Based on past experience, there will likely be a correction of around 10%, but after that, the market will move in a positive direction."

South Korea's stock market has a more diverse portfolio than any other country, ranging from traditional industries such as shipbuilding and automobiles to new industries like artificial intelligence, electric vehicles, and the internet, and it is showing good performance. With abundant liquidity as well, his explanation is that "if you look at the stock market with a long-term perspective, stock prices could be stable."

From this viewpoint, he saw the impact of short selling on stock prices as "limited." However, he stated, "Individuals should also be able to short sell like institutions and foreigners." To achieve this, "it is necessary to have a computerized system, which has already been under development since September last year," and he forecasted, "It will take about 3 to 4 more months before all securities firms can have a system that allows individuals to short sell."

Regarding recent government actions, he responded positively. Concerning measures to revitalize public offering funds, he expected, "The government has actively come up with ideas, and since most opinions from asset management companies have been reflected, it will be effective in expanding the public offering fund market in the future." However, to increase inflows into funds, he said, "There is a need for products that offer tax exemptions for long-term funds going forward."

On measures to revitalize corporate finance, he evaluated, "It will contribute to creating a virtuous cycle in the capital market where securities firms invest in startups, funds flow into innovative companies, and these companies return to the market." Additionally, he stated, "If systems like Business Development Companies (BDC) are also promoted, it will further help the growth of innovative companies."

Throughout the interview, Chairman Na consistently emphasized "member companies." He said he plans to devote full effort to listening to their opinions this year as well. Due to COVID-19, all meetings have been replaced by video conferences. Although meeting times have decreased, he expressed regret about the diminishing opportunities for face-to-face interactions.

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