Beyond 'Industry Representative' to 'Policy Partner'... Challenges Facing New KOFIA President Hwang Sungyeop

Three-Year Term Begins in January Next Year

With the conclusion of the election for the 7th president of the Korea Financial Investment Association, which represents the financial investment industry, both industry insiders and outsiders are now focusing on the challenges facing the newly appointed president, Hwang Sungyeop, CEO of Shin Young Securities. As the Lee Jaemyung administration has set the 'KOSPI 5000' as a mid- to long-term goal, there is a growing call for the Hwang Sungyeop-led association, which will launch in January next year, to expand its role beyond simply representing industry interests and to act as a policy partner to financial authorities, including driving structural improvements in the capital market.

Hwang Sungyeop, CEO of Shin Young Securities, is being interviewed by The Asia Business Daily at the Shin Young Securities headquarters in Yeouido, Seoul. Photo by Jo Yongjun

According to the financial investment industry on December 19, Hwang Sungyeop, who was elected the previous afternoon, will lead the Korea Financial Investment Association for three years from January 2025 to December 2028. The association is the representative body for the industry, encompassing securities firms, asset management companies, and the futures and trust sectors. It plays a key role as a channel for coordinating industry opinions on capital market issues and conveying them to financial authorities and the National Assembly.

In particular, President Hwang begins his term with the tasks of resolving the 'Korea Discount' and revitalizing the capital market. Since the government has set the achievement of KOSPI 5000 as a goal, the association must act as a policy partner, broadly gathering the voices of the market and investors to present mid- to long-term policy directions. Both inside and outside the industry, there is a consensus that the association should take the lead in offering comprehensive policy proposals for the development of the capital market, including institutional reforms and improvements to the investment environment. Hwang also expressed this determination in an earlier interview with The Asia Business Daily, stating, "The era has come for the financial investment industry to take on a leading role."

Restoring industry trust and strengthening ethics are also cited as major tasks for the new president. In recent years, repeated financial scandals and inadequate internal controls have undermined trust in the financial investment sector as a whole. As a result, there is a call for the association to refine best practices for internal controls and to strengthen education and self-regulatory functions for executives and employees of member companies, thereby rebuilding the image of a 'trusted capital market.' Since regulatory tightening led by authorities has its limitations, there is also growing support for the argument that association-led self-regulation must be effective.

Bridging the gap between large and small- to mid-sized securities firms is another challenge. Large securities firms are expanding their business in corporate finance, asset management, and investment operations, leveraging licenses for note issuance and integrated investment accounts (IMA). In contrast, small- and mid-sized firms continue to struggle with poor performance due to the fallout from real estate project financing (PF) insolvencies and face restrictions on entering new businesses. There are concerns within the industry that if this polarization becomes entrenched, it could undermine the overall competitiveness of the securities sector.

In addition, as digital transformation accelerates across the financial industry-including artificial intelligence (AI), security token offerings (STO), robo-advisors, and virtual assets-responding to new industries is also considered an essential task. In order to minimize regulatory gaps and ensure alignment with global standards, the association must gather industry opinions and present policy directions.

An industry official said, "For policies aimed at achieving KOSPI 5000 to have tangible effects in the market, the association must act as a bridge by gathering a wide range of opinions and conveying them to the financial authorities. The new president should play a leading role in presenting directions and improvement tasks that align with changes in the market environment to help achieve KOSPI 5000 sooner."