FSC Vice Chairman: "Capital Market Advancement Policies Are Irreversible"

Reaffirmed "Strict Response" to Homeplus Situation
Confidence That "MSCI Inclusion Will Happen Soon"
Expresses Concerns Over Side Effects of Commercial Act Amendment

Kim Soyoung, Vice Chairman of the Financial Services Commission, stated on the 21st, "Over the past three years, the capital market advancement policies pursued by the Yoon Suk-yeol administration have made significant progress, and this is now irreversible," adding, "These policies will continue in the future." Regarding the Homeplus situation, she reiterated a principled stance, saying, "We will respond strictly in accordance with laws and procedures."

Kim Soyoung, Vice Chairman of the Financial Services Commission, held a press briefing with foreign reporters at the Government Seoul Office in Jongno-gu, Seoul on the 21st, speaking about the current status and future plans for advancing capital market policies. 2025.4.21

Vice Chairman Kim made these remarks while holding a press briefing with foreign correspondents at the Government Seoul Office in the afternoon, explaining the current status and future plans for advancing capital market policies.

She said, "During overseas investor relations (IR) sessions, I am frequently asked whether the capital market advancement policies will continue. While there may be differing opinions on the specific systems to be implemented, there is a significant national consensus on the overall direction toward capital market advancement, so I am confident these policies will be sustained going forward."

Even amid the early presidential election phase caused by the presidential impeachment, she expressed a continued commitment to advancing capital market policies such as Value-Up to address the Korea Discount. Vice Chairman Kim repeatedly emphasized that these policies are "tasks that must be pursued continuously and from a more medium- to long-term perspective." She added, "Many people hope our KOSPI will reach 5,000, but this cannot be achieved with a single effort," stressing, "A considerable amount of institutional improvement and effort is required."

She also expressed confidence regarding the possibility of being included in the Morgan Stanley Capital International (MSCI) Developed Markets Index, a long-standing goal of the capital market. Vice Chairman Kim assessed that about 90% of the issues previously pointed out by MSCI, such as the short-selling ban, have been improved, and said, "Even if it is not in the very next round, I believe there is a very high possibility that Korea will soon be included in the MSCI watchlist."

To be included in the MSCI Developed Markets Index, a country must remain on the watchlist, which is the pool of candidate countries, for more than one year. In June last year, MSCI maintained Korea's status as an emerging market, citing market accessibility restrictions due to the short-selling ban as one of the reasons. She also added that during this week's trip to the United States by Financial Services Commission Chairman Kim Byunghwan, related promotion and communication with investors will take place.

Kim Soyoung, Vice Chairman of the Financial Services Commission, held a press briefing with foreign correspondents at the Government Seoul Office in Jongno-gu, Seoul on April 21, speaking about the current status and future plans for advancing capital market policies. 2025.4.21

On this day, Vice Chairman Kim presented 'strengthening the capacity for capital market innovation' as the fourth direction, in addition to the three pillars of capital market advancement: ▲fair and transparent markets, ▲improved accessibility, and ▲protection of general shareholders. Specifically, she mentioned the Security Token Offering (STO) system, innovation in the trust industry, and enhancing the competitiveness of public offering funds. She also explained that improvements to the system are being considered to revitalize joint investigations with the Financial Supervisory Service in response to unfair trading.

Regarding the amendment to the Commercial Act, which passed the National Assembly under the leadership of the Democratic Party of Korea but was derailed by the government's exercise of veto power, she said, "Whether it is an amendment to the Commercial Act or the Capital Markets Act, the current government also believes that protecting general shareholders is essential for advancing the capital market," but reaffirmed the existing position that "side effects are a concern." This made clear her opposition to the renewed push for the amendment by Lee Jaemyung, a leading presidential candidate, who expressed his intention to pursue it again on this day. She added, "The reason we prioritized the Capital Markets Act is that there could be various uncertainties and side effects, so our main idea was to protect general shareholders while minimizing side effects."

In addition, when asked whether the Financial Services Commission had referred Homeplus and its major shareholder MBK Partners' management to the prosecution on charges of fraudulent unfair trading, Vice Chairman Kim replied, "As investigations by the Financial Supervisory Service and the prosecution are ongoing, I cannot provide detailed information," adding, "We will respond strictly based on the Financial Supervisory Service's investigation and in accordance with laws and procedures." Previously, the Financial Supervisory Service launched an investigation and inspection into Homeplus and MBK Partners on the 19th of last month. She also mentioned that regarding other controversial issues in the market, such as Hanwha Aerospace's rights offering and SK Enmove's dual listing, "We are closely examining the need for institutional improvements."