At a press briefing marking 100 days in office, Korea Financial Investment Association Chairman Hwang Sung-yeop unveiled plans to prepare a "10-year future blueprint for the K-capital market" and said he aims to elevate the capital market into a "premium market."
On the 9th, Hwang held a press briefing commemorating his 100th day in office at the Korea Financial Investment Association in Yeouido, Yeongdeungpo-gu, Seoul, saying, "As the government has made revitalizing the capital market a key task, the money move into the capital market is accelerating," and added, "Now is the golden time to level up the capital market."
To craft a mid- to long-term development strategy for the K-capital market, the association has established the K-capital market headquarters to review future tasks such as pensions, taxation, and wealth management (WM). In particular, through the K-capital market forum with participation from private-sector experts, it plans to prepare a "future blueprint for the K-capital market" that sets out a development strategy for the capital market over the next 10 years.
Hwang presented five priority tasks to be pursued first: ▲ building a productive finance platform ▲ boosting returns in the retirement pension market ▲ enhancing the appeal of the wealth management market ▲ globalization of the K-capital market ▲ risk management and investor protection.
First, the plan is to grow the K-capital market into a productive finance platform. Hwang said, "The essence of the capital market is to connect funds efficiently to create new value," and he pledged active support for the smooth introduction of business development companies (BDCs), commercial paper backed by brokerages, integrated managed accounts (IMAs), and the Public Growth Fund.
In particular, to expand the supply of venture capital by small and mid-sized securities firms, he added that they will push to improve the net capital ratio (NCR) regulation and to make more realistic the calculation method for risk-weighted assets (RWAs) that reflects actual risks.
He also plans to focus on boosting returns on the public's retirement assets through reform of the retirement pension market. Hwang said, "Retirement pensions are a field that must create value through active management and a core market where the expertise of the Korea Financial Investment Association can be brought to bear," but noted, "Regulations that prioritize principal protection are restricting subscribers' choices and opportunities to generate returns."
Accordingly, they plan to enhance the default option system, under which 85% of reserves are concentrated in stable products such as time deposits, and to discuss with authorities a shift to an automatic investment method without prior selection (opt-out). They also plan to review the introduction of a fund-type retirement pension system and measures to streamline regulations on subscribers' investment limits.
They will also push product innovation to strengthen the competitiveness of the wealth management market. The plan is to upgrade products by raising the contribution limit and expanding the tax-exempt cap for individual savings accounts (ISAs), and by introducing "junior ISAs." They also intend to pursue the permanent legalization of separate taxation on dividend income, which is currently subject to a sunset clause.
Digital finance innovation is also a key task. They will support the security token offerings (STOs) bill to take root in the market and are discussing the introduction of spot ETFs for virtual assets.
At the same time, they will pursue "globalization of the K-capital market." Hwang said, "We are actively supporting the activation of integrated foreign investor accounts, and the industry is also preparing system builds and account launches," and explained, "By improving and digitizing real-name verification procedures for foreign investors, we will make it easier to open foreign accounts and lend support to efforts to join the MSCI developed markets index."
They also plan to strengthen risk management and investor protection. Hwang said, "For an orderly soft landing of real estate project financing (PF), which is a potential risk factor for our economy, we will communicate closely with the industry," and added, "Amid high market volatility, we will also step up high-quality investor education so that investors do not make poor decisions due to information asymmetry."
Marking his 100th day in office, Hwang also stressed his determination to deliver results based on execution. He said, "The greater the internal and external uncertainty, what is needed is not grand slogans but solid execution that solves on-the-ground problems to the end," adding, "We will keep pounding the pavement to the end and prove the value through results."