Financial Services Commission Vice Chairman: "Enhancing Foreign Accessibility... Will Resolve 'K-Discount'"

The Financial Services Commission announced that it will actively work to enhance the global competitiveness of the capital market and foster innovative companies in order to resolve the Korea Discount (domestic stock undervaluation).

Kim So-young, Vice Chairman of the Financial Services Commission, is explaining her recent views on the financial market and the policy direction of the capital market at a foreign press briefing held on the afternoon of the 23rd at the multi-purpose hall of the KOSIS Center in the Korea Press Center, Jung-gu, Seoul.

On the 24th, Kim So-young, Vice Chairman of the Financial Services Commission, stated at a foreign press briefing held at the Korea Press Center, “Although foreign investors continue to flow in, focusing on the growth potential of domestic companies, the Korean stock market has recorded lower returns compared to global advanced countries over the past decade,” adding, “We will strive to improve the insufficient shareholder return levels and the investment environment that lacks global alignment.”

Earlier, since the inauguration of the Yoon Seok-yeol administration in May, the Financial Services Commission has actively pursued various tasks as national agenda items to enhance the global alignment of the capital market. Last year, to enhance the rights of general shareholders, measures such as △ introduction of stock purchase rights upon material dilution △ pre-disclosure system for insider trading △ mandatory tender offer system during M&A were implemented.

Vice Chairman Kim explained, “This year, we will elevate the capital market to meet global standards and lead innovation in the real sector,” adding, “First, we will drastically reconsider the accessibility for foreign investors.” To this end, the Financial Services Commission plans to abolish the foreign investor pre-registration system for the first time in over 30 years and will mandate English disclosures for listed companies with assets exceeding 10 trillion won starting next year. Additionally, improvements will be made to the dividend process so that shareholders entitled to dividends are determined after the dividend amount is decided.

The Financial Services Commission also plans to actively respond to future technological and regulatory changes, such as allowing the issuance and circulation of Security Tokens. He stated, “Furthermore, from 2025, the scope and disclosure contents of the mandatory ESG disclosure system for listed companies will be specified,” and “We will introduce Business Development Companies (BDC) to enable innovative companies to stably raise funds through the capital market.”

Regarding unfair trading practices, thorough management and supervision will be implemented. The Financial Services Commission plans to restrict capital market transactions by unfair trading actors and prohibit the appointment of executives in listed companies. Vice Chairman Kim explained, “If we actively resolve long-delayed issues and drastically improve outdated institutional practices that have become customary, our capital market, which has been stagnating for a long time, will make a quantum leap to the next level.”

He added, “(In this regard) starting next month, we will gather broad opinions and derive detailed tasks through a total of five relay seminars.”

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