This year, the Financial Supervisory Service (FSS) has decided to focus on creating a virtuous cycle structure between the capital market and the national economy. To this end, the FSS plans to support the development of various products that enhance national wealth and strengthen the competitiveness of the financial investment industry. At the same time, it will strengthen its monitoring system to punish unfair transactions and accounting manipulations that disrupt the market.
On the 10th, the FSS announced its '2025 business plan' containing this information. Although asset management companies are preparing to launch innovative public funds, if there is hesitation due to legal uncertainties, the FSS plans to issue a non-action letter. This is to actively support the launch of creative new products.
The FSS will also establish examination criteria to allow for the launch of various new exchange-traded funds (ETFs). It will review ways to enhance retirement pension revenue through methods linked to the capital market, such as improving the default option system and activating the investment discretionary system.
Additionally, the structure of the financial investment industry will be reformed. To efficiently provide venture capital to innovative corporations, the FSS will prepare comprehensive institutional improvement plans, including corporate credit extensions, issuance of notes, and comprehensive investment accounts (IMA). It will also review detailed plans for managing the residual trust assets of unqualified private equity fund operators to ensure the market operates primarily with self-sustaining managers.
At the infrastructure level, the FSS will check the best order execution system in preparation for the launch of an alternative trading venue next month. The best order execution system analyzes the market conditions of the Korea Exchange and the alternative trading venue to allocate investor orders for optimal results. It will also promote the smooth establishment of enhanced listing maintenance requirements and the streamlining of delisting procedures announced last month.
To induce asset management companies to fulfill their fiduciary responsibilities diligently, a system for comparing and disclosing voting rights will be developed. Initiatives will be pushed to ensure shareholder rights are guaranteed through ▲faithful recording of the general shareholders' meeting agenda ▲expanding convenience for general shareholders in exercising voting rights ▲strengthening disclosure of voting rights exercise.
In preparation for market volatility, the FSS will closely examine the crisis response capabilities of financial companies and establish a regulatory framework to systematically manage risks. This signifies that it aims to thoroughly manage the soundness of some vulnerable companies so that their risks do not spread across the entire sector. In this regard, it will pilot a duty structure chart for large financial investment companies in the first half of the year.
Regarding order organization, a monitoring system for unfair transactions linked across multiple markets will be established in line with the launch of the alternative trading venue, and a database (DB) for recurrent offenders will be systematized. The functionality for connectivity analysis will be strengthened to improve the investigation system.
The FSS plans to strengthen investigations into the likelihood of unfair transaction allegations captured during the disclosure review process and closely respond to illicit transactions by marginal corporations trying to evade delisting. Investigations will also be intensified regarding expert groups using undisclosed information for illegal personal gain during corporate events such as public buybacks.
The FSS will analyze the results of audits conducted last year on marginal corporations and will expand the audit targets within this year. It will also strengthen audits on corporations scheduled for initial public offerings (IPOs) and will enhance monitoring for companies whose performance sharply declines right after listing.
The FSS noted, "We will hold open forums on the launch of an alternative trading venue and improvements to capital market infrastructure biweekly from February to March," adding, "We will also strive comprehensively to enhance our financial supervisory capabilities."