Seo Yuseok, Chairman of the Korea Financial Investment Association, "Need to Introduce Virtual Asset ETFs"

Five Key Tasks for Capital Market Innovation Presented at New Year Press Conference
"Will Continue to Advocate for Allowing Virtual Asset-Tracking ETFs"

Seo Yu-seok, Chairman of the Korea Financial Investment Association, emphasized the necessity of introducing virtual asset exchange-traded funds (ETFs) in South Korea.

At a press conference held on the 5th at the Korea Financial Investment Association building in Yeouido, Seoul, Chairman Seo presented five major tasks for the sustainable growth of the capital market: ▲Promoting capital market value-up ▲Supporting capital market innovation and infrastructure improvement ▲Creating an environment conducive to national asset formation and venture capital supply ▲Discovering momentum for the sustainable growth of the financial investment industry ▲Investor protection and risk management.

Chairman Seo stated, "With the inauguration of Donald Trump, who is favorable to virtual assets, overseas virtual asset markets are expected to become more active," and "related industries are also anticipated to make significant leaps forward."

He continued, "In major countries such as the United States and Canada, virtual asset ETF products are actively traded," emphasizing, "In the U.S. ETF market, the top five positions in net inflows over the past year have all been occupied by Bitcoin and Ethereum spot ETFs."

Chairman Seo said, "Domestic investors are heavily investing in U.S. Bitcoin-themed stocks and U.S. futures ETFs that are tradable instead of Bitcoin spot ETFs." He explained, "It is time for in-depth discussions to ensure we are not left behind in the rapidly expanding virtual asset market," adding, "Virtual assets have a low correlation with traditional investment assets such as stocks, bonds, and commodities, making them suitable for diversified investment through portfolio diversification."

Regarding virtual asset futures ETFs, Chairman Seo pointed out that they are less accurate in tracking virtual asset prices compared to spot ETFs, and that roll-over costs occur at futures expiration, resulting in higher fee rates.

He also expressed opinions on token securities. Chairman Seo said, "Advanced countries are rapidly advancing financial infrastructure innovation, including the introduction of token securities using blockchain technology," and added, "We hope that South Korea will not fall behind in the changes in the digital asset market and that the token securities bill will pass the National Assembly soon."

If token securities are institutionalized, they are expected to become a means for innovative companies to quickly raise funds at low costs. He also cited the advantage that investments in new types of products, which were not possible in traditional finance, will become possible.

Chairman Seo promised to continue efforts to revitalize the 'Didim Fund,' which was a key project last year. He introduced, "Since the launch of the Didim Fund in September last year, the average return has been about 3.5%," and "top-tier funds have exceeded 7%, which is a satisfactory result." He added, "Awareness of the Didim Fund is still insufficient," and "we will promote measures such as introducing shortcut paths in securities firms' mobile trading systems (MTS), bank sales, and expanding default options for retirement pensions."

Chairman Seo also explained that he will propose to financial authorities the expansion of the subscription target for Individual Savings Accounts (ISA), which have become a popular financial management account for the public, to minors. He said, "We will support raising the ISA contribution and tax-exempt limits and introducing new types," and added, "We will propose the introduction of Junior ISA, which expands the subscription target to minors, to make ISA a financial product for all citizens."

He also mentioned plans for direct listing to revitalize public offering funds. The government designated public fund listing and trading as an innovative financial service on November 13 last year. Chairman Seo expressed hope, saying, "If public funds can be traded easily at low costs, the market can shift from a seller-centered market to an investor-centered direct investment market." He added, "We will spare no effort to enable the direct listing of public funds within the second quarter of this year."

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