Financial industry leaders call on Yoon to deregulate capital market

People Power Party presidential candidate Yoon Suk-yeol greets his supporters at the National Assembly in Seoul, Thursday morning. Yonhap

By Anna J. Park

With the new administration set to launch in a couple of months, financial industry leaders are calling on President-elect Yoon Suk-yeol to improve the country's capital market environment by proactively deregulating and enabling further potential innovation of the industry.

Korea Federation of Banks (KFB) Chairman Kim Gwang-soo, who used to lead NH Financial Group as CEO, asked the President-elect to handle outdated systemic hurdles that have been holding back the banking industry.

“The KFB hopes the new government understands that the banking industry is striving for constant changes and puts efforts into adjusting age-old regulations of the market,” he said.

Kim added that the banking industry as a whole is now going digital by strengthening their platform competitiveness, and he urged the government to deregulate financial big data to allow banks to provide personalized financial services. He also urged the new government to expand the scope of banks' non-financial activities to enable innovative projects that combine financial and non-financial sectors.

Office buildings are located in the nation's financial district of Yeouido, Seoul, in this file photo. Korea Times file

The Korea Life Insurance Association, which represents life insurance companies in Korea, called on the President-elect to create a level playing field by rectifying regulations that have been imposed on financial companies unfairly. The association said the country's regulations have been more lenient towards big tech companies, while both big tech firms and life insurers compete in the same market to attract new customers.

“It is the shared position among the whole financial industry that the government should modify the current financial regulations that favor big tech firms and create a fairer competitive environment,” the association's statement read.

The life insurance association also urged the new government to grant more tax support for private pensions and annuity insurance, while also demanding the easing of regulations on life insurers' expanded operations in healthcare industries.

The Credit Finance Association asked the President-elect to improve the current credit card fee system.

“In order to achieve mutual growth among credit card member stores and the card industry, we urge the reforming of the current credit card fee system. The association also asks for the new government to support the card industry's digital payment settlement system,” the association said.

The Korea Financial Investment Association (KOFIA), which represents the country's securities firms and asset managers, urged the new government to create a sustainable capital market.

“As one of the core functions of the capital market is providing capital to corporations, an active capital market is a prerequisite if the Korean economy aims to go a step further from now. The association calls on the President-elect to reform the system to supply venture capital to businesses through the capital market, while fostering a sustainable investment environment by improving tax matters on securities,” KOFIA Chairman Na Jai-chel said.