What Is the Role of Financial Infrastructure Agencies?

TL;DR

Financial infrastructure agencies in South Korea, including the Korea Exchange and Korea Securities Depository, are enhancing transparency and accountability by publicly explaining their operations. They aim to boost capital market competitiveness through innovation, productive finance, and improved monitoring systems. The focus is on integrating AI for surveillance, promoting high-tech company listings, and supporting venture capital growth.

Transcript

We will now have the opening remarks from the FSC Chairman. Yes, hello everyone. I am Lee Won, Chairman of the Financial Services Commission. Today marks the first in a series of 업무 reports from our affiliated organizations, where we will hear from seven related agencies. This is an opportunity for each agency to explain their work to the ... Read More

Key Insights

• Financial infrastructure agencies are responsible for enhancing transparency and accountability by publicly explaining their operations.
• The Korea Exchange surpassed 4,000 KOSPI points, marking significant growth in the capital market.
• AI-based surveillance systems are being developed to improve monitoring capabilities and eradicate unfair trading practices.
• The Korea Securities Depository aims to improve foreign investors' access by establishing an omnibus account settlement system.
• Efforts are being made to promote the listing of high-tech companies and support venture capital growth.
• The Korea Growth Investment Corp is expanding venture capital supply to accelerate the transition to productive finance.
• The focus is on building a 24-hour trading system to enhance market competitiveness and convenience.
• Financial infrastructure agencies are committed to fostering innovative companies and transforming industrial structures.

Questions & Answers

Q: How do financial infrastructure agencies enhance transparency and accountability?

Financial infrastructure agencies enhance transparency and accountability by publicly explaining their operations and key tasks. This includes detailing their roles, responsibilities, and the changes they aim to create. Public engagement allows for feedback and helps build trust with the public. By openly discussing their objectives and strategies, these agencies aim to improve public understanding and ensure their actions align with public interests.

Q: What are the key tasks of the Korea Exchange?

The Korea Exchange's key tasks include supporting the transition to productive finance, enhancing capital market integrity, and strengthening market competitiveness. They aim to promote high-tech company listings, improve AI-based surveillance systems to combat unfair trading, and build a 24-hour trading system. These efforts are intended to foster innovation, ensure market integrity, and enhance the overall competitiveness of the capital market.

Q: How is the Korea Securities Depository improving foreign investor access?

The Korea Securities Depository is improving foreign investor access by establishing an omnibus account settlement system, which resolves discrepancies between domestic and foreign settlement processes. They are also building an AI-based issuance verification system to enhance convenience for foreign investors. These measures aim to facilitate the inclusion of the domestic securities market in the MSCI Developed Markets Index and improve the overall trading and settlement environment.

Q: What role does AI play in the operations of financial infrastructure agencies?

AI plays a crucial role in enhancing the operations of financial infrastructure agencies by improving monitoring capabilities and eradicating unfair trading practices. AI-based surveillance systems are being developed to detect abnormal signs and conduct swift investigations. Additionally, AI is used to analyze large volumes of data, enhance market surveillance, and improve the accuracy of trading systems. These advancements aim to strengthen market integrity and competitiveness.

Q: How is the Korea Growth Investment Corp supporting venture capital growth?

The Korea Growth Investment Corp supports venture capital growth by expanding the supply of venture capital to accelerate the transition to productive finance. They focus on forming funds linked to strategic industries such as AI and robotics, and actively participate in public offerings for policy funds. By providing venture capital as seed money, they aim to foster innovation and support the growth of high-tech industries and regional revitalization.

Q: What measures are being taken to strengthen capital market integrity?

To strengthen capital market integrity, measures include enhancing AI-based surveillance systems, eradicating unfair trading practices, and improving corporate value through share buybacks and dividends. The Korea Exchange is also raising delisting criteria for insolvent companies and conducting substantive reviews to ensure market health. These efforts aim to build trust, ensure fair valuations, and maintain a dynamic and competitive market environment.

Q: How are financial infrastructure agencies supporting digital asset ecosystems?

Financial infrastructure agencies support digital asset ecosystems by institutionalizing token securities and virtual asset spot ETFs. They are building platforms for the issuance and distribution of token securities and preparing systems for transaction and custody services. These initiatives aim to create a stable and secure environment for digital assets, fostering innovation and growth within the financial sector.

Q: What are the goals of building a 24-hour trading system?

The goals of building a 24-hour trading system include enhancing market competitiveness, convenience, and accessibility for investors. By allowing continuous trading, the system aims to attract more foreign investment and improve the overall efficiency of the market. It also seeks to align with global trading practices and provide a more dynamic and responsive trading environment for both domestic and international investors.

Summary & Key Takeaways

• Financial infrastructure agencies in South Korea are working to enhance transparency and accountability by publicly explaining their operations. The Korea Exchange and Korea Securities Depository are focusing on boosting capital market competitiveness through innovation, productive finance, and improved monitoring systems. AI-based surveillance systems are being developed to eradicate unfair trading practices, and efforts are being made to promote the listing of high-tech companies and support venture capital growth.

• The Korea Exchange aims to strengthen capital market integrity by enhancing corporate value and implementing AI-based surveillance systems. The Korea Securities Depository is improving foreign investors' access by establishing an omnibus account settlement system and supporting the digital asset ecosystem. Additionally, the Korea Growth Investment Corp is expanding venture capital supply to accelerate the transition to productive finance.

• Efforts are being made to build a 24-hour trading system to enhance market competitiveness and convenience. Financial infrastructure agencies are committed to fostering innovative companies and transforming industrial structures. The focus is on integrating AI for surveillance, promoting high-tech company listings, and supporting venture capital growth, with the ultimate goal of ensuring the capital market becomes a premium market based on trust and innovation.