Yoon Chang-ho, President of Korea Securities Finance, "26.3 Trillion Liquidity Supply... Leap to 4 Trillion in Equity Capital"

[Asia Economy Reporter Lee Seon-ae] "This year, we will supply approximately KRW 26.3 trillion in liquidity to the industry and do our best to fulfill the fundamental role of Korea Securities Finance. By 2025, we aim to develop into a leading financial company in the capital market with KRW 4 trillion in equity capital."

Korea Securities Finance has established its long-term goal, 'Vision 2030,' this year. The company is focusing on its role as a safety net, growth platform, and stepping stone for the capital market, and based on this, it intends to leap forward as a leading financial company. On the morning of the 20th at 10:30 AM, CEO Yoon Chang-ho held a non-face-to-face (YouTube live broadcast) press conference and stated that to accompany the sustainable growth of the capital market, "we will support the resolution of the industry's immediate challenges by expanding the reception of funds around the stock market, strengthening custody and lending services, and actively respond to the digital transformation and external expansion of the capital market to promote mutual growth with the market."

He continued, "To develop into a financial company with KRW 4 trillion in equity capital by 2025, we will carry out organizational restructuring, including the establishment of a dedicated department for digital transformation response and vision achievement," adding, "We will undertake organizational innovation tasks to instill a mindset of change and innovation within the organization, and furthermore, we will do our best to fulfill our social responsibilities as a capital market infrastructure institution by actively engaging in social sharing activities and expanding the proportion of ESG (environmental, social, and governance) related investments."

First, to fulfill the role of a safety net for the capital market, approximately KRW 26.3 trillion in liquidity will be supplied. Specifically, KRW 18.6 trillion in credit loans to securities companies through securities-backed loans and discounted promissory notes (credit loans), and KRW 7.7 trillion through repurchase agreement (RP) purchase transactions will be supplied to the capital market.

CEO Yoon said, "We expect to enhance the effectiveness of smooth fund supply and utilization by providing liquidity support tailored to the needs of securities companies," and explained, "To improve the timeliness and efficiency of liquidity support for the financial investment industry, we will establish an organization dedicated to analyzing the market and products, and based on liquidity support experience and market feedback, we plan to prepare 'Guidelines for Securities Company Liquidity Supply by Market Conditions.'"

The company will also do its best to play the role of a growth platform for the market by supporting the resolution of the industry's immediate challenges. To this end, it will promote the expansion of funds reception around the stock market, strengthen custody services, support lending services, and expand liquidity support when supplying venture capital.

To serve as a stepping stone for market development, the company has decided to focus on digital transformation. It plans to develop new products using non-face-to-face and digital technologies in collaboration with the industry so that the market, financial investment industry, and investors can all share the benefits of digital transformation. It is also reviewing ways to support the formation of the green financing market, such as supporting green bond underwriting, participating in green projects, and expanding related fund investments, and plans to prepare liquidity supply measures for investors and the industry investing in new markets in the mid to long term.

Finally, to successfully achieve 'Vision 2030,' the company plans to promote organizational innovation. It will establish a dedicated digital finance department and revise related personnel systems to cultivate expertise. CEO Yoon said, "We will also do our best in social responsibility through the Dream Sharing Foundation," and added, "We plan to participate in ESG management by reflecting ESG-related factors when executing loans and investments, and by the end of 2023, we aim to expand the proportion of ESG investments to 10% of the total asset management assets."