Hyunseung Lee, Financial Investment Association Chairman Candidate: "Expanding the Foundation for Long-Term Investment... Determined by Capital Market Quality"

Response to Public Inquiry by the Korea Corporate Governance Forum

"The advancement of investor protection mechanisms, the rationalization of unreasonable regulations, and the establishment of transparent market practices must be pursued together. This direction is fully aligned with the pledges I have consistently presented thus far."

Hyunseung Lee, Chairman of LHS Asset Management, poses before an interview at the office set up in Park Tower, Yongsan-gu, Seoul on the 11th. Photo by Jinhyung Kang

Hyunseung Lee, Chairman of LHS Asset Management (former CEO of SK Securities and KB Asset Management) and the official candidate for the 7th Chairman of the Korea Financial Investment Association, responded to the Korea Corporate Governance Forum's "10 Questions for the Chairman Candidates of the Korea Financial Investment Association" by stating, "Proper valuation of corporate value, the inflow of domestic and foreign investors, and the expansion of a foundation for long-term investment are all determined by the quality of the capital market."

Chairman Lee has continuously proposed the following: rational improvement of domestic regulations that diverge from global standards to facilitate a qualitative transformation of the capital market; enhancement of fund sales procedures and the overhaul of internal controls and consumer protection systems to structurally prevent mis-selling; and the introduction of an incident history management system to strengthen the market's self-regulation capabilities.

The introduction of an incident history management system is one of his core pledges, reflecting his philosophy that strengthening the market's ability to self-regulate risks is essential to building trust. By thoroughly managing incident histories, repeated incidents can be structurally prevented. At the same time, effective improvements to fund sales procedures will block mis-selling and, in turn, enhance market trust.

Additionally, he has promoted measures to support corporate value creation, such as the expansion of separate taxation for dividend income and the "Three Major Retirement Pension Innovation Packages" to strengthen the foundation for long-term investment. He added that these policies originate from the same awareness of the need to enhance the quality of the capital market as demanded by the forum.

He announced pledges to expand the scope of separate taxation from stocks to funds and to apply the long-term holding special deduction, currently limited to the real estate market, to small shareholders.

He also advocated for resolving the contradiction in which domestic stock investments are relatively disadvantaged in the pension market, thereby opening the way for pension assets to flow into the domestic stock market.

Furthermore, he stressed that for innovation in new industries such as digital assets and security token offerings (STO) to become new growth engines for the industry, a clear framework and responsible risk management system are necessary.

Finally, he emphasized, "Investor protection and the competitiveness of member companies are structural challenges that converge on the same goal. If elected as chairman, I will do my utmost to visibly enhance the quality of Korea's capital market and the growth of our member companies, based on accurate diagnosis and responsible execution."

This content was produced with the assistance of AI translation services.