The head of South Korea’s Financial Supervisory Service (FSS) emphasized the vital role of foreign financial institutions in bolstering the nation’s financial markets during a meeting held Wednesday.
Lee Chan-jin, Governor of the FSS, addressed leaders from ten foreign financial firms operating in South Korea, highlighting the unprecedented surge in the local stock market driven by strategic policy initiatives and the market’s inherent potential for growth.
Earlier that day, the Korean stock index briefly exceeded the 6,000-point milestone, marking a new all-time high just a month after surpassing the 5,000-point mark.
“Financial authorities are dedicated to fostering an environment conducive to productive finance and implementing innovative measures, including initiatives aimed at securing inclusion in the Morgan Stanley Capital International (MSCI) index, to further invigorate the capital market,” stated Governor Lee.
Last month, the South Korean government unveiled a comprehensive strategy designed to facilitate the country’s ascension to developed market status on the MSCI index. Key components of this strategy include plans to operate the foreign exchange market on a 24-hour basis, enhancing accessibility and liquidity.
This ambitious plan underscores the government’s commitment to addressing the “Korea Discount,” a phenomenon where local stocks trade at valuations below their intrinsic worth. The initiative aims to enhance South Korea’s appeal as a prime investment destination by promoting fair market practices and fostering investor confidence.
