Lee Bok-hyun, the head of the Financial Supervisory Service, met directly with investors to encourage domestic investment from foreign capital.
The Financial Supervisory Service announced on the 15th that Lee Bok-hyun held a briefing in Hong Kong for global investment banks and the securities industry association regarding the resumption of short selling and the advancement of capital markets.
Lee traveled to China on the 13th, about two months before the end of his term, to explain the recent domestic securities market situation and encourage investment.
At a briefing held on the 14th at the JW Marriott Hotel in Hong Kong, Lee said, "South Korea has regained stability despite two impeachment crises and demonstrated rapid resilience during past global economic and financial crises," adding, "Based on strong industrial competitiveness, such as being the number one in memory semiconductors and high-value-added ship manufacturing, we have the capacity to overcome trade crises due to recent U.S. tariff shocks."
In response to foreign investors' concerns about uncertainties arising from institutional changes related to the resumption of short selling in the domestic market on the 31st of last month, Lee said, "We will continue to communicate with investors to enhance the predictability of the market."
Regarding the enforcement of short selling regulations and the strengthening of penalties for illegal short selling, Lee said, "Korean financial authorities will sternly respond to actions that undermine the trust of capital market investors." He added, "We believe that this regulatory improvement will largely resolve the issues that led to the previous ban on short selling, such as unfair business practices and poor internal controls," and he expected that the possibility of criminal penalties would also be eliminated.
Lee emphasized that he is continuously improving the issues identified as hindering the advancement of the domestic capital market during this trip. He also mentioned that he would enhance accessibility and convenience for foreign investors by allowing fund sales through domestic affiliates of foreign asset management firms or unified accounts for foreign stocks.
The FSS stated that it will actively communicate the policies promoted by the government and financial authorities to global investors in the future.
The investor briefing was attended by 24 people, including Lee and officials from the FSS, as well as executives from 12 global investment banks based in Hong Kong and representatives from two securities industry associations.