South Korea's Bold Financial Reform

In an ambitious move to reshape its financial landscape, South Korea's Financial Services Commission (FSC) is overhauling the comprehensive financial investment business system. This initiative, reminiscent of global giants like Goldman Sachs, seeks to elevate the role of investment businesses beyond traditional securities brokerage.

A Strategic Meeting in Yeouido

A landmark meeting took place on October 9 at the Korea Financial Investment Association in Yeouido, Seoul. Attended by CEOs from ten comprehensive financial investment companies, the FSC, the Financial Supervisory Service, and the Korea Financial Investment Association, the gathering marked a pivotal step towards reforming the system and enhancing corporate finance competitiveness.

Chairman Kim's Vision

FSC Chairman Kim Byung-hwan highlighted the securities industry's crucial role in capital market development. "The securities industry is at the heart of capital market creation and growth," Kim stated, outlining plans to bolster corporate finance through the securities industry.

Three-Pronged Reform Strategy

The FSC's strategy includes refining the Integrated Management Account (IMA) system, expanding corporate credit offerings, and mandating venture capital supply via promissory notes. These measures aim to provide a solid foundation for comprehensive investment businesses to actively support corporate finance and venture capital.

Future Prospects

With Mirae Asset Securities and Korea Investment & Securities meeting the 8 trillion won capital requirement, the FSC anticipates designating new comprehensive investment businesses capable of IMA operations this year. Additionally, the potential designation of large-scale investment banks for promissory note operations is under scrutiny, with several firms in the running.

Emphasizing Risk Management

Chairman Kim urged comprehensive investment businesses to innovate and strengthen risk management and internal controls, underscoring their importance in enhancing corporate value and market trust.

Global Aspirations

The FSC's reforms reflect a broader ambition to align Korea's financial market with global investment banking models, aiming to boost competitiveness, stability, and attract foreign investment.