KOFIA Unveils Ambitious Agenda to Innovate Financial Infrastructure and Expand Scope of Domestic Financial Investment Companies in the Digital Asset Market

In his New Year's address on Jan. 2, President Seo Yoo-seok of the Korea Financial Investment Association (KOFIA) outlined an ambitious agenda aimed at innovating the financial infrastructure and expanding the scope of domestic financial investment companies in the digital asset market.

The Korea Financial Investment Association (KOFIA) President Seo Yoo-seok announced an agenda in his New Year's address on Jan. 2 to innovate the financial infrastructure and expand the role of domestic financial investment companies in the digital asset market.

"We will help domestic financial investment companies find new growth opportunities in the digital asset market," Seo said, setting the tone for the year.

Plans include expanding businesses related to virtual assets, such as legalizing token securities and virtual asset exchange-traded funds (ETFs).

"We will expand the virtual asset ETF business in the new year," Seo said, highlighting the growing importance of digital assets in the financial sector.

Token securities, which are issued using blockchain technology to represent ownership or other rights, and virtual asset ETFs, which track the performance of virtual assets, are expected to open new avenues for investment and growth.

In addition to focusing on digital assets, Seo promised to support the overseas expansion of comprehensive financial investment companies.

"We will support large securities companies to grow into top securities companies in Asia by strengthening their global capabilities and continuously promoting institutional improvements to revitalize corporate finance, such as allowing corporate payment settlements," he said.

This move is intended to enhance the global competitiveness of South Korean financial firms and tap into international markets.

Seo also underscored the importance of investor protection and self-regulation.

Following efforts last year, KOFIA implemented self-regulation measures to improve practices related to bond-type wraps and trusts and presented a standard for the duty structure.

"Along with supporting the settlement of the duty structure of financial investment companies, we will support compliance with regulations in preparation for the resumption of short selling," Seo said.

Short selling, a strategy where investors borrow shares to sell them and buy them back at a lower price, requires stringent regulation to maintain market stability and investor confidence.

Looking ahead, Seo identified several new tasks for the year, including rationalizing dividend taxation, enhancing corporate value in the capital market, supporting the listing of public funds on exchanges, and expanding the participation of domestic financial investment companies in the entrusted management of pension funds.

He also announced plans to introduce junior individual savings accounts (ISAs) and comprehensively improve the trust business system.

"We plan to expand the ISA system to help the younger generation by promoting the introduction of the junior ISA system and comprehensively improving the trust business system, including the expansion of trust assets," Seo said.

Regarding the alternative trading system (ATS) "Next Trade," which is set to launch this year, Seo aims to minimize market confusion due to the multiple exchange system and support its successful settlement.

"We will minimize market confusion due to the multiple exchange system and support its successful settlement," he said.