Financial Supervisory Service Chief: "Capital Market Risk Management Is More Important Than Anything"

Review of Measures to Activate Treasury Stock Buybacks
Establishment of Dedicated Short Selling Investigation Team
Strengthening Surveillance System for Private Equity Fund Market

Financial Supervisory Service Governor Lee Bok-hyun and representatives of the financial investment industry are taking a commemorative photo before a meeting at the Korea Financial Investment Association in Yeouido, Seoul, on the 28th. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Lee Jung-yoon] Lee Bok-hyun, Governor of the Financial Supervisory Service, urged thorough risk preparedness in the financial investment sector.

On the 28th, at a meeting with CEOs of the financial investment sector held at the Korea Financial Investment Association, Governor Lee stated, "As the proportion of capital markets within the financial market increases and the linkage with the financial system expands, risk management of the capital market is more important than ever."

He continued, "Given the ongoing severe economic and financial conditions, I hope that close communication with the market will help in the stable management of potential risks," adding, "It is necessary to closely monitor potential risk factors and prepare thoroughly so that the deterioration of domestic and international economic and financial conditions and increased market volatility do not undermine the stability of the capital market."

Governor Lee called for risk management in the securities industry, including soundness and liquidity. He said, "Attention should be paid to securing sufficient liquid funds considering stress scenarios," and added, "Since there is a constant possibility of liquidity crises in the event of short-term financial market tightening due to mismatches between funds raised through short-term market borrowings and investments in bonds, management efforts should be focused on this."

He also emphasized investor protection and securing trust in the capital market. Governor Lee said, "As the volatility of the capital market expands and uncertainty deepens, incentives for unhealthy practices in the capital market have increased, so internal controls need to be further strengthened," and added, "It is necessary to be vigilant against unfair acts of private interest pursuit that undermine investor trust and to correct them."

Furthermore, Governor Lee plans to discuss measures to enable market stabilization actions and review ways to promote the activation of treasury stock purchases. He also stated plans to strengthen the dedicated short-selling investigation team, enhance inspections and investigations, and advance the continuous monitoring system for funds to solidify the surveillance system of the private equity fund market.

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