Chairman Sohn Byung-doo of Korea Exchange (KRX) delivers his inaugural speech as he took office at an inauguration ceremony at the KRX headquarters in Busan on Dec. 21.

Former Vice Chairman Sohn Byung-doo of the Financial Services Commission (FSC) started his three-year term as chairman of Korea Exchange (KRX) on Dec. 21.

Chairman Sohn took office at an inauguration ceremony at the KRX headquarters in Busan on Dec. 21.

His term will last until Dec. 2023. Business sources expressed hope that the new KRX chairman, a famed expert of financial policies, will play a bridge between financial authorities and the financial market.

Chairman Sohn began his career with officialdom after passing the 33rd higher administrative examination and held positions such as director in charge of foreign currency funds at the Ministry of Economy and Finance (MOEF), director-general in charge of financial services at FSC, director-general in charge of FSC’s financial policies, chairman of the Securities and Futures Commission, and FSC vice chairman.

Sohn has many pending tasks on his plate to be urgently addressed. A leadership vacuum was caused by the expiry of former KRX Chairman Jeong Ji-won’s term on Nov. 1, lasting more than one month.

In particular, Chairman Sohn will be charged with ramping up soundness of the Kospi, whose index is entering the 3,000 mark, expand the derivative product market, introduce an alternative exchange and strengthen global competitiveness.

Sohn will also have to handle tasks such as institutional reform of short selling, overhauling regulations on market entry and scrutiny into market expulsions and restoring market disciplines to protect investors.

As individual investors turn to short-term investments with a focus, steps should be taken to stabilize growth of the main securities market in a long-term perspective.

Some securities industry sources said KRX will have to come up with steps to prevent the overheating of the IPO market and protect investors from possible damages they sustain.

In his inaugural speech at the Busan International Finance Center, new KRX Chairman Sohn stressed his termination to spearhead corporate innovation and challenges and realize a fair capital market, trusted by investors.

The takeaways of his speech are the nurturing of future growth engines through the capital market, the establishing of a fair capital market, trusted by investors, the pushing of advancing and globalizing market infrastructure to the levels of advanced countries, and the strengthening the competitiveness of KRX through management innovation.

Chairman Sohn urged his executives and staff members to become “responsible lookouts, partners communicating with the market and challengers who do not fear innovation.”

A view of the Korea Exchange (right) and KOSCOM building in Yeouido, Seoul. (Photos: KRX)