On November 13, President Lee Jae-myung hosted a 'Capital Market Policy Meeting' at the Korea Exchange in Yeouido, Seoul, which featured a different lineup of attendees compared to typical financial sector events. Traditionally, such meetings include the chairman of the Korea Exchange and the head of the Financial Investment Association, who sit prominently at the event.
However, the list of over 80 attendees released for this meeting did not include the name of Hwang Seong-yeop, chairman of the Financial Investment Association. Jeong Eun-bo, chairman of the Korea Exchange, was present and exchanged greetings with Yoo Dong-soo, chairman of the National Assembly's Political Affairs Committee, before the meeting began, but the contributions from institutional leaders during the discussions were minimal.
Instead, the meeting was filled with professionals and external experts who typically have less representation at government events. Among the attendees were Park Se-ik, CEO of Chesley Investment Advisory and a former stock YouTuber, Kim Sung-il, CEO of Uprise Investment Advisory, Lee Seong-won, CEO of Truston Asset Management, and Hyun Sang-kyun, CIO of DS Asset Management, along with executives from venture and biotech firms such as Kim Byung-soo of Robotis, Yoon Seong-ho of Machinarax, and Kim Hang-yeon, vice president of Alteogen.
This shift in participant composition has been interpreted in the financial investment sector as an effort to gather ideas from professionals and experts actively working on the front lines of the market, rather than relying on the conventional reports dominated by association heads and institutional leaders.
The meeting lasted approximately two and a half hours and focused more on addressing issues from the field rather than delivering ceremonial remarks. In his opening statement, President Lee noted, 'The recent significant corrections in the stock market have put the government's reform commitment to the test,' expressing his determination to normalize the capital market while wearing a red tie. During the subsequent open discussion, when Park Se-ik suggested the need for a market stabilization fund due to increased volatility from foreign futures and options trading, President Lee engaged directly with officials to assess the practicality of the proposal, marking a departure from the usual format of government-led discussions.
President Lee also urged officials to avoid generic responses during the discussions, instructing them to focus on conclusions and to expedite matters that could be addressed through changes to exchange regulations, even without legislative amendments. This approach reflects a desire to directly verify the actual demands of the market rather than relying on reports prepared by relevant agencies.
During the meeting, President Lee also called for the establishment of a 'dedicated organization for capital market reform.' He acknowledged that not creating such a body last year, when reforms appeared to be progressing smoothly, was a mistake. He directed the formation of a high-level task force that includes participation from financial authorities, political parties, and private experts, reporting directly to the president. He emphasized the need for rigorous discussions in a horizontal structure rather than a hierarchical one, urging that conflicting issues be reported on a case-by-case basis. Concerns were also raised about the inadequate understanding of the current state of corporate investor relations (IR) and lax listing maintenance requirements.
However, there were clear differences in perspectives between attendees and financial authorities regarding key issues such as the activation of the market stabilization fund and derivatives regulations. Many tasks require legislative changes, raising questions about how effectively the new dedicated organization can drive substantive reforms.
Meanwhile, some in the securities industry have expressed caution regarding the establishment of the dedicated organization. There are concerns that launching a separate high-level task force could lead to overlapping functions and confusion in responsibilities, given that existing financial authorities and related agencies already oversee capital market policies and supervision.
* This article has been translated by AI.
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