Financial Supervisory Service (FSS) Gov. Lee Bok-hyun speaks in a press conference at a restaurant in Seoul's financial district of Yeouido to mark his two-year anniversary since taking office, Tuesday. Courtesy of FSS

Financial Supervisory Service (FSS) Gov. Lee Bok-hyun has pledged to prioritize advancing the Korean capital market system to global standards, emphasizing the key values of fairness and trust, during his remaining term.

He also stressed that the financial authorities are united in their common goal of strengthening the domestic stock market's valuation and regulatory framework to better protect the rights of minority shareholders.

His comments came in Tuesday's press conference, which was held to mark the two-year anniversary of his taking office.

"I will focus more on advancing our country's capital market and laying its solid foundation by working on the government-led Corporate Value-up initiative, handling the real estate project financing crisis and improving regulatory systems during the remainder of my term," Lee said.

One of the imminent issues facing the FSS is stable management of the real estate project financing crisis. Lee evaluated that the financial authorities have been steadily preparing for the issue by inducing financial firms such as savings banks to strengthen capital reserves, while strengthening risk assessments and capital soundness at individual project financing businesses in case of prompt restructuring.

Lee anticipates the overall real estate project financing crisis to be somewhat resolved by the end of the year, and then the financial authorities would also check on the alternative investment sector as well as the weakened venture capital market. He described the process as "eliminating the cholesterol that clogs the economy."

With regard to the financial investment income tax, slated to be implemented early next year, Lee once again stressed that the taxation scheme needs to be thoroughly reassessed and overhauled to minimize the negative impact it could bring on the Korean stock markets. The FSS chief has been vocal about the annulment of the financial investment income tax, warning that it could result in an excessive outflow of capital from the local market.

Additionally, the FSS chief vowed to fully support the successful implementation of the country's first law on virtual assets, which will take effect next month. Yet, he said discussions are still ongoing within the financial authorities on whether to approve exchange-traded fund (ETF) products based on cryptocurrencies.

Regarding the FSS' cooperation with its overseas counterparts, Lee said the agency will continue strengthening reciprocal partnerships with major countries, such as the U.S. Securities and Exchange Commission (SEC).

"Given the increasing number of cross-border issues, there is a growing need for reciprocal international cooperation. Since these cooperative efforts are based on mutual favors rather than obligations, the FSS aims to provide the utmost support when such requests are made by our overseas counterparts. In my experience, there has been a strong sense of need for cooperation from the FSS' international partners," Lee said.

Lee also mentioned that the reason he focused on enhancing communication with the media through dozens of background briefings over the past two years was to mitigate any market uncertainties that might arise from his unique background as a former star prosecutor.