Chairman Hwang Young-key of the Korea Financial Investment Association has called for South Korea set up a financial hub in Seoul by inviting the international financial community to locate their operations there. He made the statement at a media briefing on July 10 at the Kofia building in Yeouido, Seoul. The project began under the President Roh government some 10 years ago, he said, and it’s about time that a strategy to build a financial hub in Northeast Asia be revived.
The veteran financial leader said Korea’s large pension funds can give support to the birth of an international financial market, with wealth management funds at its core.
Among the advantages for the birth of a financial hub in Korea, he noted a close location to major cities in N.E. Asia, such as Shanghai, Tokyo and Beijing, which as all within two hours of Seoul via air, and the superb modern financial hardware and communication facilities that are available in the country.
He also pointed out first-class restaurants, where global financial people prefer to wine and dine. Hwang said this could be the initial year for the stock market to make a quantum jump with profit and corporate management system expected to improve with KOSPI Index about to rise to 4,000 levels, quoting the reports made by the new government led by President Moon Jae-in.
Hwang, however, said, for the stock market to develop a notch, the regulations should be based on principles with the market capitalization reaching 100 percent relative to GDP. Hwang went on to note that the capital marekt has grown enough to supply corporate funds to business firms with both institutional and individual investors getting good returns from their investments in the stock market, stimulating consumer spending to show that the capital market has grown enough to fulfill its given role. In addition, retirement funds including the pension funds have also grown rapidly to support the growth of the stock market.
Under the Roh government, they wanted to set up an integrated financial hub, but now things have changed.
“We should set up a strategy to form a specialized financial hub like Singapore where wealth management firms do businesses mostly, and Luxemburg where financial services firms mostly are centered,” he said. “We should be able to find a model that can be set up in Seoul.”
Chairman Hwang also noted that the government should lead the project by demonstrating friendly regulatory policies for foreign financial firms, decrying that many foreign financial firms are set to leave the country due to tough regulations. The situation is such that no new foreign financial firms are attempting to set foot in Korea, he said.
Hwang said it is critically important to show foreign financial firms that they are on a level playing field with their Korean counterparts and need their help to give birth to a financial hub.
Financial authorities should give foreign firms the same privileges that local firms enjoy, such as the right for their employees to join the National Pension Service, making them eligible to access the retirement funds. He also noted that Singapore grants all kinds of privileges to foreign firms that set up shop in the country.
Hwang also called for measures to elevate the stock market by deregulating the market, changing it to a negative system. He also said Kofia is ready to announce ways to spur competition among securities firms based on foreign laws and regulations on the stock markets that Kofia studied.
Kofia is a non-profit, self-regulatory organization, founded under the Financial Investment Services and Capital Markets Act. It was established on Feb. 4, 2009 through the merger of the Korea Securities Dealers Association, the Korea Futures Association, and the Asset Management Association of Korea.
Kofia’s goals are to ensure fair business practices among members, the fair trading of securities and investor protection, and the development of the nation’s capital market and financial investment services industry.
Kofia performs five major functions: self-regulation, market management, upgrading the financial investment industry, the education and training of professionals, and fostering a sound investment culture. As the primary SRO, Kofia oversees a wide spectrum of areas in the Korean financial investment industry. All securities, asset management and futures firms in Korea are Kofia members and are subject to Kofia’s self-regulatory operations.
Previously having launched KOSDAQ, Kofia is now operating FreeBoard, an OTC Bulletin Board, and the OTC Bond Market. Kofia offers services such as making policy recommendations, providing member services and guiding the globalization of the Korean financial industry.
KOFIA consists of 244 members. Kofia also oversees the licensing of investment professionals such as Certified Securities Investment Advisors and Certified Derivatives Investment Advisors.
_황영기.jpg)
