Lee Bok-hyun, Governor of the Financial Supervisory Service (FSS), emphasized on the 6th that, given concerns about the potential withdrawal of foreign investors following the emergency martial law situation, communication with the financial sector and real estate industry will be strengthened to prevent unnecessary misunderstandings. He also plans to promptly improve the foreign investment environment by easing investor qualification requirements to enhance accessibility to the capital market.
At the financial situation review meeting held that day, Governor Lee stated, "To prevent unnecessary misunderstandings about our economy and financial market, we will strengthen on-site communication with the market and industry sectors such as finance, real estate, and construction, and reflect this in addressing current issues like financial stability, household debt, and real estate project financing (PF)."
The FSS plans to hold a meeting with chief risk officers (CROs) of insurance companies scheduled for that day, followed by a meeting with deputy heads of bank credit and funds on the 9th, and a meeting with CEOs of savings banks on the 10th. In mid-month, a meeting with real estate experts and the construction industry will also be held to review the funding situation in the real estate market.
On the 4th, Lee Bok-hyun, Governor of the Financial Supervisory Service, attended a closed-door meeting to review the economic and financial situation at the Bankers' Hall in Myeongdong, Seoul. Photo by Jo Yong-jun
He continued, "Although concerns about our economy and finance remain, the market impact was limited even in similar past political situations. The year-end financial sector funding review shows no sudden concentration in short- and long-term bond markets, deposits, or retirement pensions, and financial institutions’ liquidity is being managed stably, so we ask investors to have confidence."
Furthermore, Governor Lee urged, "We must consistently implement current tasks and swiftly promote improvements in the investment environment, including enhancing trust and resolving inconveniences for domestic and foreign investors." He affirmed that ongoing initiatives such as corporate governance improvement, value-up programs, foreign exchange market advancement plans, and inclusion in the World Government Bond Index (WGBI) will be carried out without wavering.
He also stated that improvements to the short-selling system will be completed by March next year without delay. In particular, he emphasized the need to continuously improve the foreign investment environment to align with global trading practices. By easing investor qualification requirements to a global standard for opening integrated stock accounts, accessibility for foreign investors to the capital market will be enhanced.
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