Seo Yoo-seok, chairman of the Korea Financial Investment Association, noted in his New Year's address on the 2nd that he will push for the legalization of token securities (STO) and the expansion of business for virtual asset-related financial investment companies, including virtual asset exchange-traded funds (ETFs).
Seo noted, "Reflecting back, last year was one of the toughest years ever," and added, "The crisis in the real estate project financing (PF) market that began in 2022 and the prolonged high interest rates have caused many financial investment companies to struggle, and capital market vitality declined due to the U.S. elections and geopolitical issues." He further stated, "The outflow of investor funds to the virtual asset market and overseas has also destabilized the domestic capital market supply and demand."
Seo mentioned that while a gradual recovery of the global economy is expected this year, factors increasing volatility in our financial market persist, including the policy shifts following the inauguration of the Trump administration in the U.S., adjustments in the pace of interest rate cuts, heightened currency fluctuations, and geopolitical conflicts. He stated, "The association will take the lead in addressing these crisis situations effectively."
Seo emphasized his commitment to supporting the expansion of financial investment companies' businesses. He stated, "I will support the enhancement of global capabilities for comprehensive financial investment firms to grow into Asia's top securities companies and continue to push for regulatory improvements such as allowing corporate payment settlements."
Additionally, he plans to work on creating growth pathways by supporting the passage of the business development corporation (BDC) system in the National Assembly for supplying venture capital to unlisted companies, expanding funding for small and mid-sized securities firms and supporting specialized strategies, securing sales channels for small and mid-sized asset management firms, and allowing institutional investors to participate in land trusts.
In addition, Seo stated, "I will minimize market disruption caused by the launch of a multi-exchange system and support its successful establishment," adding, "I will push for the legalization of token securities and virtual asset ETFs to ensure that the digital asset market can become a driving force for the future growth of our capital market."
Seo also emphasized the role of asset management partner for citizens' stable retirement planning. He stated, "I will expand the sales channels of the Dedim Fund to banks to activate mid-risk and mid-return pension investments, and support the enhancement of the retirement pension system through rationalization of the default option regulations and activation of Investment Product and Service (IPS)."
Furthermore, Seo added, "I will promote the expansion of the individual comprehensive asset management account (ISA) system and push for the introduction of a junior ISA system that can help the younger generation, and I will support comprehensive improvements in the trust business system, which has not been properly reformed for a long time, including the expansion of trust assets."