FSC chief might relax Konex rules

Yim Jong-yong, chairman of the Financial Services Commission, hinted at loosening regulations on the Konex market and derivatives during his visit Thursday to the Korea Exchange in Yeouido, western Seoul.

“The government has been trying to protect investors by limiting their access to risky markets or products,” said Yim. “Now, the government needs to let investors invest by taking responsibility on their own, while helping root out malpractices in the selling of financial products.”

Yim, who took office Monday as chief of the financial regulator, chose the Korea Exchange to visit in order to hold a discussion with officials of the stock board operator on measures to boost the venture capital market.

He earlier said his main interest is capital markets, which he believes must be the central pillar of the financial industry to make money flow smoothly from investors to start-ups.

“The FSC’s top priority will be securing a sufficient supply of venture capital, and it will soon announce measures to boost the Konex,” Yim said.

The Konex, the third stock trading board of Korea, opened in July 2013 as a market for start-ups - mostly in IT and biotechnology - that are even too small to be listed on the secondary Kosdaq. The Kospi is the index for large-cap shares.

There are 71 listed stocks on the Konex. Total market capitalization grew from 923 billion won ($824 million) in 2013 to 1.9 trillion won last month.

“The government will still oversee the markets, but minimize unnecessary interventions,” Yim said.

BY SONG SU-HYUN [song.suhyun@joongang.co.kr]