Photo of Geumtu Association President Has Disappeared

New President Seo Yuseok Stops Lobby Exhibition
Skips Inauguration Ceremony... Strengthening Field Organizations, Revitalizing Private Pension Market

[Asia Economy Reporter Park So-yeon] The photo of the Financial Investment Association chairman disappeared from the lobby on the first floor of the Yeouido Financial Investment Center. Until now, the Financial Investment Association had displayed photos depicting the association's activities along the wave-shaped wall in the lobby. Naturally, photos of events such as meetings attended by the chairman were also exhibited. However, Seo Yoo-seok, who recently took office as the new chairman of the Financial Investment Association, strongly refused to have photos featuring his face displayed in the lobby. Previously, he also skipped the inauguration ceremony. Seo was elected with an overwhelming vote share (65.64%) in the member company vote at the end of last year. Despite receiving applause from employees, he chose not to hold an inauguration ceremony.

Chairman Seo comes from a background as a CEO of an asset management company. This is the first time since the establishment of the Financial Investment Association in 2009 that a CEO of an asset management company has been elected as chairman. The election result, where an asset management company CEO was elected chairman representing securities and asset management companies with a significant margin, was considered an upset. Previously, from the first chairman Hwang Geon-ho to former chairman Na Jae-cheol, all chairmen had come from securities firms.

The Financial Investment Association has 60 securities firms, 308 asset management companies, 14 trust companies, and 3 futures companies as members. Thirty percent of the total voting rights are equally distributed among all member companies, and 70% are allocated differentially according to the association membership fee contribution ratio. Since securities firms pay more membership fees compared to asset management companies, the influence of large securities firms is significant in this structure.

Seoyuseok, Chairman of the Korea Financial Investment Association. Photo by Korea Financial Investment Association

Seo’s early days as chairman, having broken through this structure, were reportedly distinctive. The New Year greetings, which used to be held in an auditorium, were replaced by the chairman personally visiting each floor to greet members. The culture of executives lining up in front of the chairman’s office to report was also abolished. Reports were replaced with documents, and Seo has been dismantling all formalities since taking office.

Instead, to strengthen communication with member companies, Seo has begun expanding operational organizations and strongly driving the activation of the private pension market. Among the six executives subject to personnel decisions, three were reappointed. The reappointed executives include Lee Chang-hwa, head of the securities and futures division, and Na Seok-jin, head of the asset management division, which the industry interprets as a move to strengthen operational organizations.

At a recent New Year press conference, Chairman Seo emphasized the need to expand communication with member companies, stating, "We will actively operate channels for practical communication on current issues to collect opinions from member companies and convey them to the authorities and the National Assembly to reflect them in policies." Accordingly, the existing securities, futures, and asset management divisions, which serve as bridges between member companies and authorities such as the Financial Services Commission and the Financial Supervisory Service, are expected to be reinforced by adding personnel.

Conversely, the back-office organizations supporting internal administration of the association will be downsized, and overlapping departments among the current 25 or more departments will be integrated to generally improve organizational efficiency. The activation of the private pension market is also expected to be a focal point of personnel and organizational restructuring. Chairman Seo has emphasized, "This year can be the first year of the 'Great Money Move' into the private pension market."

As individual investors’ interest in the private pension market grows amid the limitations of the National Pension Service, the plan is to expand the industry’s scope through the activation of the private pension market, including funds. Accordingly, Chairman Seo recruited Lee Sang-ho, former head of the PB Center at Mirae Asset Securities, who has expertise in wealth management (WM), as an executive director. The Financial Investment Association plans to finalize personnel appointments and organizational restructuring soon and announce them after the Lunar New Year holiday.