Set Sail for Seo Yuseok's Administration... Stabilizing the Troubled Capital Market Remains a Challenge

Elected as the 6th Financial Investment Association President with Term Until December 2025
Financial Expert with Experience in Securities Firms and Asset Management Companies

[Asia Economy Reporter So-yeon Park] Seo Yu-seok, former CEO of Mirae Asset Global Investments, has been elected as the 6th Chairman of the Korea Financial Investment Association. His term will run from January 2023 to December 2025.

The Korea Financial Investment Association held the chairman election via electronic voting on the 23rd at 3 p.m. at the temporary general meeting hall on the 3rd floor of the Financial Investment Center in Yeongdeungpo-gu, Seoul. Former CEO Seo was elected as the next chairman with 65.64% of the votes.

Chairman-elect Seo has extensive experience in both securities firms and asset management companies. He worked at Daehan Investment Trust (now Hana Securities) and Mirae Asset Securities, and from 2016, he led Mirae Asset Global Investments as CEO for five years. Among the association’s 385 member companies, 308 are asset management firms and 60 are securities firms. His election marks the first time a candidate from an asset management background has become chairman.

In a recent interview with Asia Economy, Seo stated, "I want to significantly grow the individual pension and retirement pension markets in line with the government’s public pension reform." He added, "Since public pensions cannot fully cover people’s retirement needs, we need to persuade authorities to provide more incentives for private pensions." He further advised, "To supplement the income replacement rate of public pensions, we could consider doubling the contribution limits for private pensions, allowing the remaining gains from downsizing housing to be invested in private pensions, and adjusting the system so that receiving pensions as annuities rather than lump sums is more advantageous." He emphasized, "Based on my experience across securities and asset management sectors, I will carefully consider the diverse interests of member companies."

Recently, the Korean economy, capital markets, and financial investment industry have faced a very difficult crisis situation for the first time in 14 years since the 2008 financial crisis. The rise in interest rates and economic slowdown have led to a downturn in the real estate project financing (PF) market, raising concerns about liquidity risks. Especially following the Legoland incident, instability in the bond market continues, and contingent liabilities of securities firms are expected to increase.

Chairman-elect Seo is expected to work with member companies at the association level to stabilize the market and provide practical policy recommendations to authorities. At a press conference after his election, he said, "Next year, the credit crunch triggered by real estate could spread to the financial investment industry," and stressed, "We must ensure that securities firms do not face temporary liquidity shortages causing problems." He added, "I believe government authorities and related institutions share this view, and through detailed communication, we can find solutions."

Revitalizing the capital market is also a key task for the new chairman. The establishment of an Alternative Trading System (ATS) to break the Korea Exchange’s 67-year monopoly must be accelerated. The ATS aims to start trading in 2024, with plans to apply for preliminary approval and establish the corporation within this year. Other major tasks for the financial investment industry include passing amendments to the Capital Markets Act to introduce Business Development Companies (BDC) and stabilizing the default option system for retirement pensions.

◇Profile

▶ Paejae High School (Graduated 1981) ▶ Korea University, Department of Economics (Graduated 1988) ▶ Korea University, Master’s in Financial Management (Graduated 1993) ▶ Joined Daehan Investment Trust (1983) ▶ Head of Marketing Division, Mirae Asset Securities (2005?2006) ▶ Head of Retail Business Division, Mirae Asset Securities (2006?2009) ▶ Head of Retirement Pension Division, Mirae Asset Securities (2009?2010) ▶ President, Mirae Asset MAPS Asset Management (2010?2012) ▶ President in charge of Marketing and ETFs, Mirae Asset Global Investments (2012?2016) ▶ CEO, Mirae Asset Global Investments (2016?2021)

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