Seungbeom Ko Targets SillaJen and Osstem Implant "Will Establish Order in the Capital Market"

[Image source=Yonhap News]

[Asia Economy Reporter Jin-ho Kim] Ko Seung-beom, Chairman of the Financial Services Commission, emphasized that he will "focus on establishing a fair order in the capital market" in relation to controversies surrounding 'KOSDAQ listed companies' such as the delisting of SillaJen and the embezzlement at Osstem Implant.

Chairman Ko attended the full meeting of the Financial Development Council held at the Bankers' Hall in Jung-gu, Seoul on the 25th, stating, "Concerns among the public are rising due to several incidents involving KOSDAQ listed companies since the beginning of the year."

The Korea Exchange's Corporate Evaluation Committee recently decided to delist SillaJen. Kolon TissueGene is also expected to reach a delisting decision next month. Osstem Implant is facing the possibility of delisting amid a large-scale embezzlement case. Celltrion Pharm is currently embroiled in controversy related to accounting fraud.

Chairman Ko said, "If trust in the capital market is shaken, not only the smooth supply of venture capital but also the development of the capital market and the economy will become distant goals," adding, "We will do our utmost to protect investors and actively pursue institutional improvements to enhance the fairness and stability of the capital market."

Regarding the Korean economy and financial markets this year, he diagnosed, "They are facing uncertainty and volatility," and noted, "In particular, the 'liquidity party' that caused the asset market bubble is coming to an end." Chairman Ko emphasized, "As the global tightening clock accelerates, the possibility of correction in overheated asset markets is increasing," and added, "We must gauge the scope and depth of the shocks we will face and prepare in advance."

He also stated, "We will continuously guide the soft landing of household debt," and "We will review the stability of the short-term funding market and asset markets to prepare for shocks caused by the shift in global policy trends." Furthermore, he added, "We will supply policy finance worth 200 trillion won this year, focusing on supporting small and medium-sized enterprises in future innovation sectors."