The Financial Supervisory Service, local governments, and financial sector jointly hold New York IR on the 16th
Interest in resuming short-selling… Lee Bok-hyun: “Announcement in mid-June”
Jung Eun-bo: “Korean value-up, different from Japan…incentives are key”,
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, ‘[New York (USA)=Edaily Kim Bo-kyum Reporter] Financial Supervisory Service Director Lee Bok-hyun met with overseas investors in New York, USA, and expressed his intention to push for the resumption of short-selling at least in part by targeting June. In particular, he emphasized that he will clearly announce the timing, allowable range, and method of resuming short-selling.’,
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, ‘On the 16th (local time), Director Lee attended the investment explanation session (IR) ‘INVEST K-FINANCE: NEW YORK IR 2024,’ organized by the Financial Supervisory Service, Korea Exchange, the city of Seoul, the city of Busan, the financial sector, and held at the Conrad Hotel in New York. He stated, “My personal ambition is to resume short-selling at least in part in June,” and added, “If there are deficiencies in technology or institutional aspects, we should communicate the content that we will proceed with such a timeline, taking into account the opinions of institutional investors and other stakeholders.” ‘,
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, ‘Director Lee, who has so far stated that it is difficult to determine the timing of resuming short-selling, expressing a positive attitude towards the resumption of short-selling is unprecedented. This is interpreted as the result of the increasing attention from global investors on the resumption of short-selling, with questions about the timing of resuming short-selling raised during conversations with local investors. Director Lee explained, “Systems for institutions to manage balances require time and preparation, and opinions on amending the law are divided,” and added, “We will establish a plan to prevent illegal short-selling by operating a system by the end of May or June without amending the law.” ‘,
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, ‘The New York IR is designed to promote the government’s ‘corporate value-up policy’ aimed at resolving the Korea discount (undervaluation of the Korean stock market) while also improving various regulations for overseas investors and informing them of plans to improve them. The event also aims to emphasize that Korea’s financial industry can respond stably and soundly in an uncertain global economic situation.’,
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, ‘Overseas investors also showed interest in how Korea’s value-up program differs from Japan’s policies, apart from short-selling. When asked on-site about the differences from Japan’s policies, Jung Eun-bo, director of the Korea Exchange, answered, “To induce the value-up program at a faster pace than Japan, we will reflect incentives at the policy level” and added, “We plan to operate an integrated website to allow investors to access and compare companies’ information efficiently.” Director Jung also emphasized that they are considering support measures for companies that operate exemplary practices autonomously and are contemplating providing more information depending on industry or company characteristics, as future investments may be more important than participation in the value-up program.’,
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, ‘Some overseas investors also paid attention to concerns about the domestic financial sector’s insolvency due to losses from overseas real estate investments. Regarding this, Director Lee stated, “We have already reflected the decline in overseas real estate values and accounted for a certain portion of the investment capital as losses in the books, so the impact of overseas real estate losses on the domestic financial system is limited,” confidently asserting, “It is not a problem.”‘,
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, ‘The event was attended by KB Financial Group, Shinhan Financial Group, Mirae Asset Securities, Korea Investment & Securities, Samsung Life Insurance, and Hyundai Marine & Fire Insurance, who also announced their value-up plans. Kim Mi-seob, Vice Chairman of Mirae Asset Securities, said, “We will continuously repurchase our own shares, as well as announced a three-year plan for shareholder returns in February this year,” and added, “We will pursue a more proactive shareholder return policy by providing the minimum quantity of stock buybacks.”‘
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