Interview with Korea Financial Investment Association Chairman Candidate
② Hwang Sungyeop, CEO of ShinYoung Securities
"The Association as a Partner in Innovation and Policy Proposer"
Strengths in Coordinating Industry Issues
With the closing of applications for the 7th chairman candidacy by the Korea Financial Investment Association’s Candidate Recommendation Committee, the election process has entered full swing. Hwang Sungyeop, CEO of ShinYoung Securities, who has built a diverse career at ShinYoung Securities over the past 38 years, announced his candidacy, stating, “Now is the golden time for Korea’s capital market,” and pledging, “I will become a chairman who expands the entire pie of the capital market.”
In a recent interview with The Asia Business Daily, CEO Hwang revealed his detailed vision for the role and direction of the Korea Financial Investment Association. He emphasized the need for reform, stressing, “The association must evolve from being a mere complaints window to an active policy partner.”
“Establishing a Permanent Policy Council... Proactively Proposing Policy Initiatives”
CEO Hwang defined the association’s fundamental role as representing the interests of its member companies. “The financial industry is subject to very strong regulations,” he said, adding, “The basic mission is to collect on-site challenges and areas where regulatory easing is needed, submit recommendations to the Financial Services Commission, the Ministry of Economy and Finance, and the National Assembly, and persuade them to reflect these in policy.”
However, he drew a clear line, stating that the association’s role should not be limited to simply handling complaints. With the government recently emphasizing productive finance and establishing an institutional foundation to strengthen the function of the capital market beyond traditional lending and bank-centered fund flows, he argued that the association must also play a strategic role.
He added significance by saying, “The Korean economy has reached an inflection point to secure new growth engines, a golden time. While finance has so far played a supporting role for industry under regulation, now the financial investment sector has a historical mission to take the lead.”
CEO Hwang’s vision is clear: the association must commit to serving as a partner in innovation and a policy proposer, communicating closely with the National Assembly and financial authorities, and ensuring that the capital market firmly establishes itself as a ‘national growth platform’ that drives the growth of innovative companies.
He also acknowledged criticism that the association has not actively represented the industry’s voice. “I have visited many member companies and listened to various opinions,” he said, “and many expressed disappointment with the association’s passive attitude.”
To address this, he proposed the establishment of a ‘permanent policy council.’ “Currently, the association’s consultations with financial authorities and the National Assembly are irregular and only respond to specific issues,” he said. “Through a permanent council, I will create a structure where we can discuss not only urgent issues like promoting productive finance and improving pension regulations, but also future growth topics such as artificial intelligence (AI) and virtual assets.”
He further stated, “The association must be reborn as an active partner that translates on-site voices into policy, not just as a passive complaints-handling body for member companies, and as an ‘Easy Access’ association that is always approachable.” He promised, “Even if there are no special issues, we will maintain constant communication to identify necessary matters, collect opinions, and deliver them to the relevant authorities.” He added, “We will proactively propose policy initiatives that have built consensus through sufficient exchange of opinions on the future agenda of the financial investment industry.”
Hwang Sungyeop, CEO of ShinYoung Securities, is being interviewed by The Asia Business Daily at the ShinYoung Securities headquarters in Yeouido, Seoul. Photo by Jo Yongjun
Capital Market ‘Fishbowl Theory’... Large Firms Must Lead Market Change
CEO Hwang also presented concrete plans for improving the pension system, a matter of national interest. He pointed out that currently, 88% of default option reserves in Korea are concentrated in principal-guaranteed products, which limits the potential for long-term returns. Citing successful overseas examples such as the US 401(k) and Australia’s superannuation, he argued, “We must encourage long-term investment through appropriate risk-taking.”
As specific improvement measures, he suggested: ▲ reducing the proportion of stable portfolios composed solely of time deposits; ▲ expanding investment portfolios to include target date funds (TDFs) and balanced funds; ▲ broadening the range of default option products; and ▲ simplifying the procedures for changing products. He emphasized, “I will work with the financial authorities and the Ministry of Employment and Labor to create an environment where people’s retirement assets can grow in real terms.”
He also shared his views on expanding the supply of venture capital. Recently, the government has expanded the scope of venture capital to include financial support for small and medium-sized enterprises, venture and high-yield funds, investments in debt securities rated below A, as well as the National Growth Fund’s Advanced Strategic Industry Fund and Business Development Companies (BDCs). He stated, “The association needs to flexibly propose expanding the scope of venture capital, and as the supply increases, efforts to discover new investment opportunities must go hand in hand.” He added, “We plan to build a system that helps securities companies identify promising investment targets by cooperating with various related organizations, including the Venture Capital Association, Venture Business Association, and Korea Credit Data, with whom the association has already signed business agreements (MOUs).” He clarified that the goal is to move beyond simple MOUs and ensure that these efforts lead to substantial investment support.
Regarding concerns about large firms dominating the market as the supervisory authorities grant approval for Integrated Managed Accounts (IMAs), he explained, “The capital market is like a fishbowl; the big stones must settle first for the smaller stones and sand to find their places.” He predicted that if large firms lead market change and small and medium-sized firms are given opportunities, the financial investment industry’s overall resilience will be strengthened.
On the issue of competition among domestic asset management companies, CEO Hwang pledged to continue proposing regulatory easing and measures to promote indirect investment, such as long-term investment tax incentives, lower tax rates for separate taxation of dividend income, and improvements in the convenience of public fund investment.
He cited his broad experience across the financial investment industry over 38 years, as well as his role as a coordinator, as his strengths. He has worked in all areas of the securities industry, including retail, investment banking (IB), wealth management (WM), asset management, planning, finance, and risk management, and has also handled asset management and real estate trust work through affiliates.
He also highlighted his experience as chairman of the Yeouido CEOs’ Council for a year and six months, where he coordinated industry issues. “The association consists of about 400 member companies, including securities firms, asset management companies, futures companies, real estate trust companies, large firms, and small and medium-sized firms, which means there are many conflicting interests,” he said. “With my diverse experience and balanced perspective, I will lead the association, create a unified voice, and promote mutual growth.”
Concluding the interview, CEO Hwang pledged, “The financial investment industry has a historical mission to drive the future of the Korean economy, and I will do my utmost to ensure the association stands at the center of that mission.”
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