The Korea Investors’ Forum was held by the Financial Services Commission (FSC) on the 17th of November at the Landmark Hotel in London, and then on the 18th at the New York Palace Hotel in New York. They have been done in collaboration with the private sector including the Korea Exchange (Jung-Hwan Lee, CEO) and Samsung Securities (Jun-Hyun Park, President). The purpose of these events was to promote the Korean economy and the financial market to the foreign investors in advanced economies.
Chairman of FSC, Kwang-Woo Jun attended the presentation held in New York on the 18th about investing in the Korean financial market to make a keynote speech on the liquidity of foreign currency, the soundness of banks, as well as on concerns over potential risks of SMEs and household (residential) debt. An analysis of objective statistics and indicators was used to minimize both the domestic and overseas concerns over the Korean economy.
The guarantee of external debts, the supply of additional liquidity by the government and the BOK, and the 33 trillion won fiscal expansionary package was explained as a few of the preemptive measures put in place by the government; emphasizing the healthy macroeconomics of the country and the resilient economic fundamentals of its financial market.
Furthermore, Korea’s entrance into the FTSE Developed Index as well as the entrance into the Global Dow Jones Developed Index was explained in proving the advancement made by the Korean financial market through recognition of its sovereign credibility. A request to promote such achievements by investing more into the Korean market was made.
1. Korea Investors’ Forum
The Korea Investors’ Forum held in London and New York on the 17th and 18th of November were done in an IR setting composed of an official luncheon followed by one-on-one meetings between individual corporations and institutional investors.
This joint IR was held in collaboration with the FSC and the Korea Exchange, supported by Samsung Securities and participated by 15 domestic enterprises adopted by the FTSE Developed Index and 100 other local investors expressing interest in the Korean market.
It was the first IR held by Korea’s highest financial authority after Korea was adopted into the FTSE Developed Index (Sept. 18) and during the investors collective opinion gathering period until the end of December for the adoption into the MSCI Developed Index.
It presented a timely opportunity for giving a detailed description of current economic conditions, government policy measures, and the invest-worthiness of individual corporations to the U.S. local investors. Together with government agencies and the Korea Exchange, it was participated by Samsung Securities, KB Holdings, and other financial institutions, as well as Hyundai Motors, state-owned Korea Electric Power Corp., Samsung Electronics and others in the corporate sector.
Mr. Lee, the CEO of the Korea Exchange discussed the development potential of the Korean stock market and the adoption into the FTSE Developed Index in his opening remarks. Whilst, the president of Samsung Securities, Mr. Park, emphasized the growth of Korean companies and stressed the investment value of Korean enterprises in his welcoming remarks.
2. Global Network Reinforcement with Important Personage
Meanwhile during his visit to New York on the 18th, the FSC Chairman met with Timothy Geithner, FRB New York presidents and discussed about the pending financial question of both nations and about the mutual assistance hereafter.
The chairman expressed his contentment with the positive psychological effects that the recent Swap agreement with the FRB has brought to the domestic and international markets and they have agreed to continually strengthening the financial cooperation between the two countries. Also, the chairman referred to the 5 common principles which became agreement (Nov.15) at the G-20 summit meeting, and told him that it will be closely discussed when necessary.
During a direct conversation with the S&P President, Deven Sharma, the Chairman emphasized the efforts made by the Korean government to stabilize the financial market in the early stages to prevent ripple effects into the real economy rising from the financial crisis. He asked for continued interest in the Korean market and requested for a careful and positive assessment of our economy in order to raise the sovereign credit rating.
Also during a direct conversation with William Rhodes, CEO of Citi Group, a man known for his Korea-friendly reputation in the Wall Street community, the chairman asked for the power of his influence to correctly advertise the relative strength and reliability of the Korean market and its economy.
The chairman spoke with Henry Fernandez, President of MSCI, asking for his cooperation in adopting Korea into the MSCI Developed Market Index.
*Please read the attached file for details.