Why Did the People Power Party Choose the Capital Market for Their First On-Site Meeting? CEO Jung Young-chae Responds

Jung Young-chae CEO "Agreement from Market Perspective"
People Power Party Emphasizes 'Market Economy'
Chosen as First On-site Meeting for Capital Market

[Asia Economy Reporter Hwang Yoon-joo] "I understood that the People Power Party intends to focus its (economic) policies on the market. So I came to engage in dialogue with the capital market, not just to talk with securities firms."

This was said by Jung Young-chae, CEO of NH Investment & Securities, regarding the People Power Party's Policy Committee choosing the capital market for its first on-site meeting on the 27th. Contrary to the assumption that it was a routine event, the People Power Party repeatedly emphasized that this was the industry's ‘first’ on-site meeting. This symbolically shows the significance of the event.

The meeting exceeded the scheduled time by about 24 minutes. The CEO of Securities Firm A was heard outside the room mentioning the need for regulatory improvements concerning private equity funds and public funds. The CEO of Asset Management Firm B also spoke about regulations on overseas public fund equity investments. After the meeting, the CEO of Securities Firm A said, "I spoke freely about what I wanted to say. The atmosphere was good."

After the meeting, CEO Jung told reporters, "The current administration’s basic principle is small government and market-oriented," adding, "I believe the People Power Party invited securities firms, asset managers, and foreign companies because they wanted to see the capital market."

Yoon Han-hong, a member of the National Assembly and the People Power Party’s Policy Committee secretary for the Political Affairs Committee, said before the meeting, "The biggest economic policy of the Yoon Suk-yeol administration is a 'return to market economy,'" adding, "It is important to see to what extent the capital market can serve as a funding channel for companies." Securities firms effectively act as a funding source for companies, from rights offerings, commercial papers, and equity capital markets (ECM) to corporate bond issuance (DCM) and mergers & acquisitions (M&A).

CEO Jung said, "Banks are not considered markets. Banks add margins once the base interest rate is set," and explained, "The capital market is where fund managers and fundraisers operate according to supply and demand, functioning as a market."

When asked about industry requests, he said, "Securities firms have deposited over 350 billion KRW with the Korea Financial Telecommunications & Clearings Institute, but unlike banks, corporate account transfers are not possible, which was pointed out. Issues such as partial withdrawals from retirement pensions were also raised."

He continued, "The capital market is more conservative due to regulations compared to banks, but there was consensus on the need for regulatory improvements so that the role of venture capital is not diminished," and evaluated, "The big picture from a market perspective was aligned."

Meanwhile, the Korea Financial Investment Association plans to organize the requests in detail and deliver them to the People Power Party’s Policy Committee.

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