New Financial Services Commission Chairman Focusing on Capital Market Growth

New Financial Services Commission (FSC) Chairman Lim Jong-ryong announced that he would come up with policy for Korea New Exchange (KONEX) reform sooner or later. 

The head of the FSC visited the Financial Supervisory Service (FSS) on March 18 and the Korea Exchange on March 19 as his first official items since taking office.

“I have more affection than anyone for the financial and capital markets of Korea, and I will bring positive changes to the markets,” he said at the Korea Exchange. The changes are considered to include venture capital promotion, which is likely to revolve around the overall reform of KONEX.

Specifically, the minimum individual deposit requirement is expected to be adjusted from 3 trillion won (US$2.7 billion) to 1 trillion won (US$890 million). Also, measures are likely to be put in place to attract institutional investors by, for example, allotting more IPO shares for high-yield funds investing more in the KONEX. 

In addition, venture credit default swap (V-CDS) development is predicted to pick up speed so that fledgling venture firms can attract investment and the risk of the investment can be reduced while regulations on the establishment, management, and sale of private equity funds are relaxed to the level of those of global financial industry leaders.