"Let's Not Lose Chances"

Capital Market Integration Law should get parliamentary approval as early as possible

What would happen if the rabbit and tortoise in the fable race again's Rabbit will win for sure if it doesn't sleep. If tortoise falls a sleep, the result would be more self-evident. The slow moves by tortoises are no longer considered a virtue in this fast-moving world of ours these days.
The survey by the Financial Times on 46 cities for their chances to become a global financial center, Seoul came in at 43rd. It fell behind all Asian cities, which are Seoul's close rivals and most of the cities in Eastern Europe, paling the idea so much pushed to make Seoul a financial hub in Asia. Looking at the matter from a financial point of view, the fact that all Asian cities in the survey, including Singapore, Hong Kong, Sydney and Tokyo were included within the top 10 cities indicates a lot to us.
Hong Kong, Singapore and Australia have completed revising their financial regulations to be more market-friendly, protective of investors and allowing multiple operations of financial businesses since several years ago. The conservative Japan has also set out to reform its financial market through the financial commodity transaction law from last year.
The most common aspect of their financial reform activities is the pursuance of the growth of capital markets in those countries. Since 1997 financial crisis, we paid much efforts on advancing the financial system in the country and substantial results were made in the banking sector.
It is a little late, but the draft of the capital market integration law is pending at parliament. Media reports show that many financial experts agreed with the need for the law.
Right now, we have been enjoying the highest living standards since Tangun founded the first Korean kingdom some 5,000 years ago. Our economy has had a glittering development in the past half century, but has been mired in difficulties with the situation compared to "sandwich"or a nut in a nutcracker in the media due to its dull prospects.
Japan has started running ahead again after a 10-year long retrenchment with its high-tech intact and China is threatening to catch up with us. Under the circumstances, we cannot shake off the fear that we would not be able to break out of just being a country with $20,000 per capita income and a limited room for further growth. If the current trend of globalization continues for several decades, there would not be developing countries, only advanced and underdeveloped countries, nothing in between.
Our current generation of Koreans has a mission to leave a strong and rich Korea to the next generation. In order to be able to do that, we have to have the manufacturing sector sustain its growth continuously and foster the financial sector as a high value-added industry, not just a tool for economic policies. Britain has done it. It developed its financial industry and took care of the English sickness that had been a drag on its economy and firmly established itself as an advanced country, which tells a lot to us.
To turn the financial industry around and develop it as a new growth engine, the parallel development of all segments of the industry is a key, which is the purpose of the draft of the capital market integration law now pending at the National Assembly. The law also contains provisions aimed at increasing wealth for senior citizens and make their lives affluent through an advanced financial market. It will also spur the development of various financial products to provide jobs for financial experts and absorb idle funds protecting the rights of financial consumers by allowing the transfer of small amounts of funds.
At the present time, economic and financial environments in the world have been changing from day to day, raising the cost for delayed decision making for national policies higher. If we lose the chance due to internal problems, we may never be able to become a strong advanced financial country forever.
All financial sectors, and their leaders should pool their wisdoms together to have the bill get the parliamentary approval as early as possible. We ought to be a wise rabbit running fast, not a tortoise in a slumber. nw

By Chairman
Hwang Kun-ho
The Korea Securities Dealers Association