Market leaders call for innovation, risk management amid lingering uncertainty

Leaders of state-run investment institutes and private brokerage firms here said they would accelerate digital transformation of the market and beef up their risk management capabilities in the face of lingering pandemic uncertainties.

The Korea Exchange, the nation‘s sole securities exchange operator, said it would seek ways to expand the market entries of promising companies and secure market fairness by strengthening regulations on short selling.

“The KRX will support innovative companies to easily make market listings by systematic improvement,” said KRX Chairman Sohn Byung-doo.

Na Jae-chul, chairman of the Korean Financial Investment Association, emphasized that his organization, industry’s self-regulatory body, would try to improve the industry’s role in funding businesses and focus on environmental, social and governance issues to adapt to fast-changing environments.

“Despite increasing uncertainties in the financial market and entire economy, Kofia will continue to beef up its role of funding for innovative growth,” said Na, vowing to launch ESG initiatives to help investment firms roll out related services.

Rhee Myong-ho, chief of Korea Securities Depository, the central securities depository of the nation, said KSD would nurture digital capabilities and improve systems to make the local private equity fund market and venture investment sector more efficient and transparent than before.

Innovation based on data and technology, ESG initiatives and risk management were among key messages delivered by chiefs of private stock companies this year.

Choi Hyun-man, executive vice chairman of the nation’s leading stock trading house Mirae Asset Daewoo, said the company would carry out its “G.R.O.W.T.H” strategy -- the acronym standing for globalization, risk management, opportunity, wealth management, technology, and high quality.

“Mirae Asset Daewoo, as the No.1 stock trading firm in the nation, has always looked beyond traditional investment boundaries, and it will try to become a global top-tier investment bank down the road,” Choi said.
 

He added that the company would keep making efforts to expand its global presence, manage potential risks beforehand, seize opportunities in new segments while using emerging technology, such as artificial intelligence, big data and blockchain.

Mentioning the ongoing spread of COVID-19, Korea Investment & Securities CEO Jung Il-mun stressed the need to routinize the company’s risk management to prevent possible market crisis.

“Fear and anxiety always coexist in the financial market. If we are well prepared for all possible scenarios, we will be able to see opportunities more clearly and grab them,” Jung said.

Amid intensifying competition between conventional financial companies and fintech firms, he also urged his employees to focus on digital innovation.

Jeong Young-chae, CEO of NH Investment & Securities, also highlighted the importance of the firm’s digital services, adding that securing technology for the digital transformation is likely to be a new competitive edge in the local industry.

In addition, he said that the company needed to build new growth engines by, for example, creating hyper-personalized solutions while prioritizing customer satisfaction.

“We need to be a consultant as well as a troubleshooter for customers. To play those roles, we have to be delicate in serving customers. No matter how the world changes, our goal, which is to create great customer value, should not change,” Jeong said.

KB Securities co-CEOs Park Jeong-rim and Kim Seong-hyun vowed to take the brokerage firm’s digital platform capacity up a notch and focus on environmental, social and governance-centered business operation. The CEOs also prioritized creating values for customers and maintaining strong work ethics.

“Despite increasing volatility and hurdles in handling daily tasks due to the COVID-19, we were able to show outstanding business performance last year,” the CEOs wrote in a letter to employees. “Maintaining the momentum, we need to build more competitive business portfolios this year.”

By Kim Young-won & Jie Ye-eun
(wone0102@heraldcorp.com) (yeeun@heraldcorp.com)