Yesterday, on 13th of December, the FSC and Korea Exchange (KOREX) jointly held a workshop, ‘Capital Market and Related Issues’. Since FSC’s moving-out to its new office in Gwanghwamun district in this October, FSC has made continuous efforts to ‘communicate’ with the public. One of the visualized efforts is a series of workshops held so far. The workshops covered recently rising economic and financial issues, including household debt concerns, introduction of the Covered Bond Act, and regulation against overwhelming transactions between affiliates within a corporate. Yesterday’s workshop was the last one for this year, dealing with another heatedly debated issue these days. Capital market attracts lots of attention these days, as stock market has become bearish amid prolonged global economic downturns.
Korean capital market is known as the 16th biggest market worldwide, having been recognized as a newly emerging and active. It has carried out its role as an appropriate source of financing firms. During the past decades accelerating economic growth, Korean firms grew with an expanding capital market, which showed a virtuous cycle in mutual ways.
However, the capital market is being influenced by economic uncertainties largely looming in the market, as the overall international economic circumstance is depressing and recessionary. Responding this phenomenon, the FSC Chairman Kim Seok Dong mentioned as follows, “Our capital market should be more easily accessible by firms in need of funds. By adequately financing businesses, capital market can enhance its competitiveness, which will be a beginning of ‘new growth story’. All these efforts should be based on the core value of financial consumer protection.” To effectively provide SMEs with demanded funds, the FSC is planning to establish ‘KONEX’ shortly. KONEX is an abbreviation for ‘Korea New Exchange’ focusing on financing SMEs, which is very similar to BX Venture in the US.
The FSC, for the purpose of advancing our financial infrastructure and making changes in our capital market, will take a close look at analyzing our financial system as a whole and capital market in particular. Ultimately, efficiency in the market and enhanced consumer protection will be sought by the FSC’s policy measures.