FSC’s Yim hopes to reform the capital marketThe financial regulator will begin overhauling the listing process for the Korean stock market, making it easier for local entrepreneurs to raise additional funds.
In the first review meeting on the progress of financial reforms presided over by Yim Jong-yong, chairman of the Financial Services Commission (FSC) on Thursday, the regulator unveiled its plan to continue pushing forward reforms across the financial industry, focusing on the capital market this year.
Since his inauguration as FSC chairman in March 2015, Yim has implemented as many as 70 reform-related plans. In his second year, Yim will focus the FSC on transforming the capital market.
The regulator’s new plans include improving regulations on initial public offerings, exporting financial infrastructure to overseas markets and expanding the performance-based compensation system across the industry.
“Although there have been some signs of change in the financial industry in response to the government’s reform efforts, so far the reform is incomplete,” Yim said at the meeting. “We should do more in a constant manner in the second round of financial reforms.”
The main reason for reducing the regulations for listing on the stock market is to give companies easier access to funds, Yim said.
“The main idea of the plan is to evaluate companies’ potential in a more reasonable manner by using diversified listing methods,” the chairman said.
The commission will also support the export of financial infrastructure, including the Korean stock exchange system, as a new growth engine for the industry.
Currently, a bill to revise the Capital Market Act to turn the state-run Korea Exchange, which operates the stock market, into a holding company is pending at the National Assembly. The FSC chairman has strongly urging the passage of the bill, saying the holding company system will help enhance the competitiveness of the Korean stock exchange board through competition with foreign exchange operators.
“Korea’s stock exchange boards are behind in terms of profitability, international influence and variety of products,” Yim said earlier. “Competitors like the Japanese and Hong Kong boards are moving swiftly under the holding company system that guarantees great flexibility for competition.”
To reduce inconvenience to consumers, the new FSC Ombudsman will launch today, consisting of seven financial experts from the private sector. Chang Yong-sung, chairman of Korea Financial Investors Protection Foundation, will head the agency.
BY SONG SU-HYUN [firstname.lastname@example.org]