Financial Services Commission Holds 'Capital Market Strategy Forum'... "Continuing Policies for Capital Market Advancement"

The Financial Services Commission announced on the 8th that it held the first 'Capital Market Strategy Forum' together with stakeholders including research institutions, academia, and market participants. The purpose was to review the progress of policies for advancing the capital market and to discuss policy directions for the development of the capital market from a mid- to long-term perspective.

At the meeting, Kim So-young, Vice Chairman of the Financial Services Commission, emphasized the government's consistent commitment to 'market stabilization efforts' and 'promotion of capital market advancement policies.' She explained that, given the ongoing structural changes such as the decline in potential growth rate and rapid demographic shifts in the Korean economy, a longer-term perspective is necessary to consider the development of the capital market.

She stated, "In the current environment of high uncertainty and volatility in domestic and international economic and financial conditions, such as the recent announcement of mutual tariffs by the United States, the government is making every effort to firmly maintain market stability," adding, "It is necessary to steadily pursue efforts to advance the capital market so that it can fulfill its role based on the trust of domestic and foreign investors."

To this end, the government has set the 'Capital Market Advancement Policy Direction' centered on three key goals: establishing a fair and transparent market order, enhancing domestic and foreign investors' access to the capital market, and establishing shareholder value-based corporate management. Various tasks have been identified and are underway. This year, the focus is on 'innovation' in the capital market and 'strengthening support for the real economy,' including enhancing the competitiveness of the securities industry to strengthen corporate finance and venture capital supply, and institutional improvements to diversify securities issuance and distribution systems such as fractional investment platforms.

Vice Chairman Kim emphasized again, "In recent years, the Financial Services Commission has pursued 'capital market advancement' as a major policy task," explaining, "This means establishing a virtuous cycle in the capital market where companies raise funds for growth, and citizens enjoy the results, accumulate assets, and expand investments."

However, she anticipated that the role of the capital market will become more important as the Korean economy faces structural changes such as a decline in potential growth rate and rapid demographic shifts including low birth rates and aging. In response to these changes, the government has established the 'Capital Market Strategy Forum' and newly created the 'Capital Market Strategy Planning Division' within the Financial Services Commission.

She stressed, "The capital market advancement policies pursued so far should be consistently implemented according to the original schedule and plan," adding, "It is necessary to continuously discuss and discover new tasks for the development of the capital market from a mid- to long-term perspective."

Following this, Choi Soon-young, Senior Research Fellow at the Korea Capital Market Institute, delivered a presentation titled 'Progress and Future Directions of Capital Market Advancement Policies.' Senior Research Fellow Choi explained the main contents of the capital market advancement tasks recently promoted by the government, focusing on establishing shareholder value-based corporate management, enhancing market accessibility, improving capital market efficiency, strengthening competitiveness of the financial investment industry, and establishing a fair and transparent market order. He also explained the need to analyze and respond to the impact of future changes such as population aging and technological environment changes including artificial intelligence (AI) on the capital market.

Going forward, the Financial Services Commission plans to continue its efforts to advance the capital market, including programs for corporate value-up, advancement of the financial investment industry, and establishment of capital market order. Additionally, to continuously discover and supplement mid- to long-term tasks for creating a 'capital market of coexistence and opportunity' for national asset formation and corporate growth, the Commission plans to broadly collect opinions from research institutions, academia, and market stakeholders.

Attendees at the meeting included Vice Chairman Kim So-young, representatives from the Financial Supervisory Service, Korea Exchange, Korea Securities Depository, Korea Financial Investment Association, Kim Mi-seop, CEO of Mirae Asset Securities, Jang Deok-su, Chairman of DS Asset Management, Song In-jun, CEO of IMM Holdings, Kim Jae-yoon, Vice President of Samil Accounting Corporation, Lee Hang-yong, President of the Korea Institute of Finance, Kim Se-wan, President of the Korea Capital Market Institute, Shin In-seok, Professor of Business Administration at Chung-Ang University, Jung Soon-seop, Professor at Seoul National University School of Law, Chae Jun, Professor at Seoul National University Business School, Kim Woo-jin, Professor at Seoul National University Graduate School of Business, and Lee Jun-seo, Professor of Business Administration at Dongguk University.