[New Year's Address] Seo Yuseok, Chairman of the Korea Financial Investment Association, "Proactive Response to Market Instability... Strengthening Internal Control Capabilities"

"Supporting Global Expansion... Expanding Foreign Currency-Based Business"
"Encouraging Treasury Stock Buyback and Cancellation... Enhancing Valuation"

Seo Yu-seok, Chairman of the Korea Financial Investment Association, stated, "We will proactively respond to financial market instability, including support for the normalization of real estate project financing (PF) and strengthening ELS monitoring," adding, "We will also push for revisions to the standard internal control guidelines in line with amendments to financial company governance laws, such as the introduction of a duty structure."

[Image source=Yonhap News]

In his New Year's address on the 2nd, Chairman Seo said, "The domestic and international environment surrounding the financial investment industry this year is challenging," and added, "There are numerous factors that could increase volatility in the financial markets, such as uncertainties during the interest rate cut period, persistent inflationary pressures, and geopolitical issues."

He explained, "This year, significant changes are expected in the sales landscape of our industry's flagship products, such as funds and ELS, which have been dependent on specific channels like banks," and continued, "We will prepare proactive measures to ensure that the role of the financial investment industry in managing the nation's assets is not compromised." He further stated, "To revitalize the stagnant fund market, we will capture diverse market demands through measures such as differentiating public fund profit rights and promoting funds for management participation," and added, "We will support the expansion of domestic financial investment companies' participation in pension fund entrusted management."

Additionally, there are plans to support the global expansion of the financial investment industry in various ways. He emphasized, "We will identify and resolve constraints related to overseas expansion, such as expanding foreign currency-based businesses like overseas remittances and foreign currency fundraising, and continue to promote the introduction of corporate payment and settlement systems for financial investment companies."

Chairman Seo said, "To supply venture capital to unlisted companies, we will support the swift introduction of the Business Development Company (BDC) system and the establishment of Alternative Trading Systems (ATS) that will lead innovation in securities trading," adding, "We will utilize these as catalysts to significantly expand the horizons of our capital market in the digital era through the legalization of token securities and support for the launch of digital asset-related financial investment products."

He stated, "We will persuade and promote to companies and the public measures that can enhance capital market valuation, such as increasing dividend payout ratios of listed companies and encouraging share buybacks and cancellations," and added, "To induce steady capital inflows into our capital market, we will discover and propose various policies, including expanding tax benefits for long-term indirect investments." He also noted, "We will support the prompt rationalization of capital market regulations that deviate from global standards, such as regulations on complex financial investment products and restrictions on individual investors' access to derivative markets."

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