At the securities industry CEOs meeting on the 29th, it was emphasized that the Value-up Program should be actively participated in and concerns were raised about the concentration of real estate finance. The securities companies are considering revising the comprehensive securities investment company system criticized for focusing only on short-term high-yield businesses such as real estate project financing instead of providing integrated corporate finance (IB) services as a financial company.
Kim Byung-hwan, the chairman of the Financial Supervisory Service, met with the CEOs of securities firms to discuss various issues and urged them to participate actively in the government’s “Value-up Program.” He emphasized the importance of the securities industry’s proactive role in advancing the government’s key policy of capital market sophistication and enhancing competitiveness through corporate value-up, as well as the need for a shift from debt-centered to equity-centered financing for both households and companies.
He also pointed out the need for activation of equity financing in the securities industry, highlighting the importance of securities firms’ role and operations as a crucial part of our capital market and dynamic economic growth. Financial authorities are planning to evaluate the comprehensive securities investment company system introduced ten years ago and embark on reorganization through discussions with the securities industry.
Furthermore, he stressed the importance of liquidity and soundness management by securities firms as they have done so far, as well as stricter measures against illegal and unfair practices. He also called for the readiness of securities firms to implement system improvements, such as building short selling system, to combat illegal and unfair practices.
In response to the Value-up Program, the securities industry expressed its willingness to participate and announced plans to provide financial support and investment advice to companies as part of the corporate value-up process. Some companies are also planning to participate in disclosing their plans for enhancing corporate value as listed companies. Additionally, efforts to ensure financial stability, such as setting aside reserves for risks in real estate project financing, will be made.