Chairperson Lee Eog-weon of the Financial Services Commission (FSC) emphasized a "responsible investment culture" to the private equity fund (PEF) industry and urged it to "reflect and undertake a full self-renewal."
On the 30th at the Korea Financial Investment Association, Chairperson Lee met with the head of the Korea Financial Investment Association and the chief executive officers (CEOs) of 17 securities and asset management firms and said, "We will pursue institutional improvements in line with global consistency so that private equity fund (PEF) investment can take root as transparent and responsible investment that meets the public's expectations," and stated accordingly.
Following the Homeplus Co. sale situation by MBK Partners, as controversy over PEF investment grew, the emphasis was placed on self-discipline along with improvements to PEF-related systems.
In this regard, the PEF industry said it will launch a related committee within the PEF Council to expand socially responsible investment (SRI) and present directions that can contribute to ESG, the creation of social value, and the sound growth of industries.
Lee also said that to prevent delays in the supply of venture capital, the authorities will swiftly push for additional designations of comprehensive investment brokerage firms as soon as reviews are completed.
The financial authorities are conducting licensing reviews to add, within the year, securities firms that can engage in issuance notes and IMA (integrated investment accounts) businesses.
In addition, Lee said, "By strengthening the real estate NCR regulation, we are improving inertia-driven, real estate-centered investment and enhancing soundness, while pushing productive finance as a top priority so that funds can flow into the productive sectors of our economy." From this perspective, Lee asked securities firm CEOs to build expertise in identifying target companies for investment and to establish systematic investment processes.
The Financial Services Commission (FSC) also plans to strengthen the venture capital function of the asset management industry. Lee said, "We will ensure the successful settlement of business development companies (BDC), which allow ordinary people to easily invest small amounts in early-stage corporations, and we will also expand within the year the incentive for priority allocation of initial public offerings to KOSDAQ venture investment funds (KOVEN funds) from the current 25%," and asked the asset management industry to play an active role.