Financial Supervisory Service Holds Briefing on Financial Investment Sector... "Various Factors Causing Market Instability"

On the 16th, the Financial Supervisory Service (FSS) announced that it held the '2023 Financial Investment Sector Financial Supervision Briefing Session,' attended by approximately 270 people including representatives from securities firms, asset management companies, real estate trust companies, and the Korea Financial Investment Association.

At the briefing session, after listening to presentations on topics related to the financial investment industry from industry experts, explanations were given regarding the FSS's supervision and inspection directions for the financial investment sector this year. Communication was also strengthened through a roundtable with industry participants, discussing recent major issues in the securities and asset management sectors and gathering suggestions on supervision and inspection directions.

The FSS stated that regarding this year's supervision and inspection directions for the financial investment sector, it plans to establish a mid- to long-term risk management roadmap based on the comprehensive diagnosis results of the causes of risks in securities firms in the second half of last year. Additionally, it intends to actively support overall supervision and examination tasks to help financial investment companies firmly establish a foundation for sustainable growth.

Furthermore, from the perspective of creating a trustworthy investment environment, the FSS is considering introducing the Independent Research Provider (IRP) system to enhance the objectivity of research reports, and plans to improve the foreign investment system and undertake a full-scale overhaul of the Foreign Investment Management System (FIMS) to enhance global consistency.

Regarding inspection tasks, the FSS explained that it will promote preemptive regular inspections focused on core and vulnerable areas to reduce the burden of inspections and improve inspection efficiency, while strengthening continuous monitoring of potential risk factors through checking the risk management status of securities firms and operating an advanced asset management continuous monitoring system.

Ham Yong-il, Deputy Governor of the FSS, stated, "Recent domestic and international economic and financial conditions continue to be uncertain, with various market instability factors scattered around. The financial investment industry and supervisory authorities must respond swiftly and wisely to rapidly changing financial environments such as digitalization, new business demands, and social responsibilities."

He added, "Under the broad framework of this year's basic financial supervision direction, 'proactive response to crisis situations and changes in the financial environment and the creation of a warm and fair financial environment,' the financial investment sector plans to carry out supervision and inspection tasks focusing on systematic diagnosis and timely response to capital market risks and support to strengthen the competitiveness of the financial investment industry."