Financial Services Commission Vice Chairman "Preparing Measures to Restore Trust... Considering Improvements to Foreign Investor Registration System"

So-Young Kim, Vice Chairman of the Financial Services Commission [Photo by Financial Services Commission]

[Asia Economy Reporter Lee Jung-yoon] Kim So-young, Vice Chairman of the Financial Services Commission, announced on the 15th that she will prepare measures to restore investor confidence, including improving accounting transparency, delisting review, and eliminating fictitious subscriptions in Initial Public Offerings (IPO), and will also examine whether to improve the foreign investor registration system.

Vice Chairman Kim attended the 'Policy Seminar to Resolve Korea Discount' held at the Korea Exchange in Yeouido, Seoul, and said, "We will swiftly promote the government's national agenda to restore trust in the capital market from investors, such as the recently announced measures to enhance the rights of common shareholders related to physical division and insider trading."

She continued, "Within this year, we will sequentially announce and implement measures to improve accounting transparency, delisting review, IPO fictitious subscription, and regulations related to security tokens," adding, "We will also actively strengthen responses and punishments against securities crimes that cause investor damage and undermine trust in the capital market."

She also stated that broad regulatory reforms will be carried out simultaneously. She said, "We will identify and gradually remove shackles such as regulations that exist only in Korea but not in advanced countries, outdated regulations introduced long ago whose reasons are now hard to find, and rigid regulations that cannot accommodate recent technological changes," adding, "For example, we will examine whether there is room for reasonable improvement in the foreign investor registration system, which was introduced in the early 1990s and is still in operation."

Furthermore, she said, "Unlike global standards, shareholders entitled to dividends are confirmed before the dividend is decided, limiting market judgment opportunities, which may be causing low dividend payout ratios. I believe there are many issues to examine," and added, "We will hold several more relay seminars to further discuss various issues raised here and improve the capital market's structure."

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