(Seoul=Yonhap Infomax) Gyeong Eun Park = Lee Chan-jin, Governor of the Financial Supervisory Service (FSS), visited Kiwoom Securities Co., which recently became South Korea’s fifth licensed issuer of short-term notes. The visit aimed to directly inspect investor protection mechanisms in non-face-to-face (online) subscription processes and to urge effective supply of venture capital.


On the 24th, Governor Lee visited Kiwoom Securities’ headquarters to review preparations for its short-term financing business.


Lee emphasized that, regarding the supply of venture capital, it is more important to focus on field-driven investments rather than merely meeting the minimum regulatory ratios. He called on Kiwoom Securities to accelerate and enhance the effectiveness of venture capital supply so that capital market funds can drive the growth of venture and innovative companies.


Given that Kiwoom Securities originated as a venture-based brokerage, Lee urged the company to leverage this strength to lead in supplying risk capital.


Last week, South Korea’s financial authorities granted Kiwoom Securities the fifth license for short-term financing operations. As of the end of the third quarter this year, Kiwoom Securities’ equity capital stood at 5.7 trillion won ($4.3 billion), and the company can raise over 11 trillion won ($8.3 billion) through the issuance of short-term notes.


Lee also stressed the importance of investor protection for short-term note products. Unlike other securities firms that have obtained licenses for this business, Kiwoom Securities is an online-focused brokerage with no physical branches.


He reiterated that the principle of “full sales” of financial products begins at the product design stage, and requested that only products suitable for sale to family members be offered to clients.


Additionally, as Kiwoom Securities will be handling new deposit-like products, Lee called for the establishment of a robust risk management system and sufficient capital buffers to ensure stable and sound operations.


He also urged the company to strengthen IT stability, noting the increasing risks of internal system failures and external threats. Lee requested expanded IT investment and the creation of a secure investment environment.


Following a previous IT incident, Kiwoom Securities has continued to increase its IT infrastructure investments. The company allocated 30 billion won ($22.6 million) to IT investment this year, and has budgeted 45 billion won ($33.9 million) and 50 billion won ($37.7 million) for 2025 and 2026, respectively.


Kiwoom Securities also reaffirmed its commitment to further refine investor protection measures throughout the entire non-face-to-face product subscription process.


After the on-site inspection, Lee held a virtual meeting with venture company CEOs, urging the financial investment industry to pay closer attention to the voices from the venture field. He also pledged to work with relevant institutions to establish institutional foundations supporting the sustainable growth of venture companies.


gepark@yna.co.kr


(End)

All content has been translated by AI.
Copyright © Yonhap Infomax Unauthorized reproduction and redistribution prohibited.