KOFIA Holds Executive Meeting for Asset Management Firms to Enhance Capital Market Value

The Korea Financial Investment Association announced on the 14th that it held the 'Capital Market Value-Up Asset Management Executive Meeting' in the medium conference room on the 22nd floor of the Korea Financial Investment Association building.

The meeting was organized to listen to the opinions of the financial investment industry on the recently announced ‘Corporate Value-Up Program’ and to explore the active role of the financial investment sector.

Attendees at the meeting included Lee Chang-hwa, Executive Director of the Korea Financial Investment Association, executives from eight asset management companies, representatives from the Korea Exchange, and the Capital Market Research Institute.

Lee Chang-hwa, Executive Director of the Korea Financial Investment Association, stated, "Capital market value-up is an important task that can revitalize our economy, which is facing difficulties due to low growth and low birth rates," adding, "The association will continue to support the creation of a policy environment where institutional investors and companies can coexist harmoniously."

Jung Sang-jin, Head of Korea Investment Trust Management, said, "Since the guideline announcement, there have been views questioning its concreteness and effectiveness on the surface," but added, "Contrary to this, many listed companies are actively announcing measures to enhance shareholder value." He continued, "Currently, the government’s value-up program and private activism are combined, and I believe we can rapidly catch up within a few years with the processes that the U.S. experienced over 100 years and Japan over 20 years."

Moon Il-kwon, Head of Mirae Asset Global Investments, said, "Expanding shareholder return policies, enhancing transparency, and improving governance to increase corporate value can raise foreign investors’ interest in the domestic stock market," adding, "It can also contribute to diversifying the portfolio of household assets, which are concentrated in real estate."

Yang Seung-hoo, Executive Director of KB Asset Management, explained, "If policies such as dividend expansion and share buybacks are activated through the value-up program, it will be a win-win policy for all market participants, including improved pension fund investment returns, providing personal investors with financial tools, and attracting foreign investment funds."

Regarding the role of the financial investment industry in capital market value-up, Park Young-soo, Vice President of VIP Asset Management, emphasized, "We have attracted overseas investors’ funds by holding undervalued domestic companies for a long time and engaging through ‘persuasion and encouragement’," adding, "Due to regrettable shareholder policies, we will continue to provide customized consulting and conduct meetings with management for undervalued companies."

Jung Won-jung, Team Leader at Samsung Asset Management, explained, "As an institutional investor that has adopted the Stewardship Code, we are doing our best to contribute to enhancing corporate value through active voting rights exercise and engagement activities."

Regarding suggestions for capital market value-up, Lee Sung-won, Vice President of Truston Asset Management, emphasized, "It would be an effective method for pension funds to encourage listed companies to participate in value-up programs in the form of a ‘nudge’ through delegated asset managers," adding, "The asset management industry will also actively participate in engagement activities more than in the past in line with this trend."

Bae Moon-sung, Director of Life Asset Management, advised, "Pension funds and mutual aid associations need to consider engagement activity track records and personnel as key evaluation criteria when selecting delegated asset managers."

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