Former KB Asset Management CEO Lee Hyunseung: "Revitalizing the Capital Market Is Essential for Seoul to Become a Global Financial City"

Lee Hyunseung, former CEO of KB Asset Management, stated that "revitalizing the capital market is essential for Seoul to become a global financial city," emphasizing the need to enact a 'special law for capital market revitalization.'

On September 18, at a policy forum held at the National Assembly Members’ Office Building to discuss upgrading the financial industry, Lee was the first presenter. He said, "Aging and low growth are fundamental factors threatening the sustainability of the Korean economy," and added, "The solution to overcoming these challenges lies in the capital market."

He stressed that revitalizing the capital market can simultaneously achieve three effects: ensuring stable retirement in an aging society, easing the government’s fiscal burden, and supporting capital raising for innovative companies.

Considering the expansion of digital assets such as artificial intelligence (AI), security token offerings (STO), and stablecoins, as well as the rapidly changing industrial environment, he argued that a special law going beyond the current Capital Markets Act is necessary. He explained that only a "two-track strategy"-simultaneously pursuing an international financial hub package to attract foreign investors and a support package for domestic financial institutions and investors-would enable Korea’s capital market to leap forward.

As directions for tax and institutional reforms, he suggested expanding the special long-term real estate holding deduction to stocks and funds, and enhancing the effectiveness of the default option system. He also emphasized the urgent need to overhaul unnecessary regulations to meet global standards.

He explained, "In Korea, there are many restrictions on new businesses. Not only is there a lack of labor market flexibility suitable for the financial industry, but the lack of consistency between government ministries is also an issue that needs to be addressed."

Lee stressed, "If a special law for the capital market is enacted, Korea will attract global capital and financial institutions. This will also enhance the competitiveness of domestic investors and financial institutions, allowing Korea to establish itself as one of the top three financial hubs in Northeast Asia."

Finally, he said, "When many international financial institutions chose Singapore over Seoul as Hong Kong became more closely aligned with China, we missed an opportunity to become a global financial city. Now, as the new administration calls for capital market revitalization, this may be our last chance."

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