The Financial Supervisory Service stressed that the core role of securities firms is to identify future growth companies such as innovative and venture businesses and to actively supply risk capital, and it asked them to move forward with active investment in that regard.
The Financial Supervisory Service (FSS) held a meeting on the 11th titled "FSS–Ministry of SMEs and Startups (MSS)–securities industry roundtable to vitalize the supply of risk capital in the capital market" and discussed ways to expand the securities industry's supply of risk capital. The meeting was arranged under a business agreement the FSS and the Ministry of SMEs and Startups signed in Nov. last year.
Attendees included Seo Jae-wan, assistant governor for financial investment, Kim Bong-deok, venture policy director at the Ministry of SMEs and Startups (MSS), as well as officials from the Korea Financial Investment Association, the Venture Capital Association, and comprehensive investment account (IMA) and commercial paper-issuing comprehensive financial investment companies (broker-dealers).
Assistant Governor Seo Jae-wan emphasized, "As broker-dealers and SME-specialized securities firms receive various institutional support, please demonstrate high expertise in risk underwriting and intermediation and become leading investors in the supply of productive capital."
He also asked the associations and others to ensure that the roundtable could serve as a springboard for "real growth" through close communication and active support, and to make efforts on post-investment management for sustainable investment.
Venture Policy Director Kim Bong-deok said, "We plan to expand touchpoints between the venture and financial industries by sharing information on promising ventures and startups identified and nurtured by the mother fund," and requested linked support such as follow-on investment by the financial sector, connections to overseas investors, and consulting.
He also encouraged the active participation of the securities industry, saying that to channel more broker-dealers' risk capital into innovative ventures and startups, the government plans to support the creation of private venture fund-of-funds and joint investments with the mother fund.
In response, the securities industry agreed that to actively participate in policies to expand productive finance, it would increase investment in small and venture corporations and support the sufficient supply of funds needed for corporate growth.
The seven broker-dealers engaged in commercial paper issuance and IMA operations plan to supply about 20 trillion won or more in risk capital over the next three years. In addition, SME-specialized securities firms plan to support small and venture corporations through various investment vehicles such as venture capital and new technology business investment associations, and suggested creating a dedicated league for the Ministry of SMEs and Startups' mother fund commitment program.
The Financial Supervisory Service (FSS) and the Ministry of SMEs and Startups (MSS) plan to continue on-site communication to expand the supply of risk capital, including holding an additional roundtable this month for asset management companies.
An FSS official said, "We plan to push swiftly for active collaboration and bold support to produce concrete outcomes such as building a productive finance ecosystem."