[2023 Asia Fund Awards] Financial Supervisory Service: "Actively Support Fund Growth... Need to Enhance Management Capabilities"

Congratulatory Speech by Kim Jeong-tae, Deputy Director of the Financial Supervisory Service

[Asia Economy Reporter Lee Seon-ae] Congratulations on the hosting of the ‘14th Asia Fund Awards’ ceremony, and sincere thanks to Woo Byung-hyun, CEO of Asia Economy, and all related personnel for organizing this meaningful event. We also extend our congratulations to the executives and employees of financial companies who have received awards today.

Last year, there were many difficulties across the economy and financial markets due to factors such as high interest rates, high inflation, and high exchange rates. We give a big round of applause to all of you who have worked hard with sweat and passion for the sound development of the fund industry amid the rapidly changing financial environment.

Our fund industry has achieved remarkable growth over the years. The fund assets under custody, which were only 30 trillion won 20 years ago, have now exceeded 800 trillion won, and the number of related executives and employees has reached about 12,000, firmly establishing itself as a pillar of the financial industry. Behind this quantitative growth lies the stable growth of the domestic economy and capital markets.

However, the overall conditions surrounding domestic finance remain challenging after the COVID-19 pandemic. Amid ongoing economic uncertainties such as concerns over the slowdown of the domestic and international real economy, increased stock market volatility, and deterioration of the real estate market, there is an expansion in direct investment demand from individual investors, and structural changes in the financial industry are progressing due to the digitalization of finance.

In this situation, the Financial Supervisory Service will actively support the asset management industry to grow through innovation in the changed financial environment. First, a dedicated organization for the review of foreign funds and general private equity funds has been established, and the process for rapid review will be completely reorganized. Additionally, reasonable improvement plans to strengthen the competitiveness of public funds are also being prepared.

Meanwhile, continuous efforts by the industry itself will also be necessary. First, professional management capabilities must be enhanced. Please invigorate the fund industry by developing fund products that meet investor demand and expanding investments into new growth engines. Also, as asset managers who manage and operate customers’ funds, I urge you to do your best to restore investors’ trust with much higher compliance and ethical awareness than before.

Professor Robert Merton, a Nobel laureate in economics, cited ‘trust’ as the most important factor for the success of the financial industry. He emphasized that a ‘triangle of trust’ must be formed among financial consumers, financial companies, and regulatory authorities. This year, let us work together so that financial companies, consumers, and financial authorities can build strong trust through mutual cooperation and enhanced communication to achieve the common goal of fostering a sound and sustainable fund industry. Once again, congratulations to all the awardees today, and I wish the ‘Asia Fund Awards’ continued prosperity.

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