[2021 Capital Investment Awards] Financial Services Commission: "Do Not Settle for External Growth, Focus on Investor Protection"

Congratulatory Address by Lee Se-hoon, Secretary General of the Financial Services Commission

[Asia Economy Reporter Ji-hwan Park] During the response to the economic crisis caused by COVID-19, a large amount of liquidity also flowed into the capital market. As the increased market liquidity entered the capital market, the scale of our capital market grew significantly. The stock market surpassed 3,000 points for the first time in history, and this year's initial public offering (IPO) fundraising is expected to reach a record high of 20 trillion won. Recently, many financial investment companies have recorded their highest-ever net profits, greatly improving profitability.

However, we must not be complacent with external growth. Recently, the capital market is facing structural changes that demand new responses amid rapidly changing domestic and international environments. I believe it is time to quickly grasp the flow and speed of change and prepare to seize opportunities. The recent spread of Omicron has raised concerns about economic slowdown, and inflationary pressures are accelerating the normalization of monetary policy, increasing uncertainty in the macroeconomy and financial markets. I think it is time for financial investment companies to strengthen their efforts in risk management, including profitability and soundness, as well as investor protection.

Efforts are also needed to gain the trust of individual investors, estimated to have exceeded 10 million after COVID-19. In particular, recent financial products have become more complex, and sales channels have diversified, requiring financial companies to take greater responsibility. Please make efforts to ensure that accurate and sufficient information is provided to investors when selling investment products.

Finally, I would like to point out the intensifying competition in the capital market. Investors are expanding their investments overseas beyond domestic markets, and domestically, the proportion of exchange-traded funds (ETFs) and direct investments is increasing. Virtual assets and non-fungible tokens (NFTs) are also rapidly growing as alternatives to traditional financial investment products. In an era of unlimited competition, only by abandoning complacency and vested interests and securing creativity and diversity can one survive. I hope that today's award will serve as an opportunity to take a step ahead in the flow of change and challenge and prepare for the future.

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