FSC chief Kim Byoung-hwan speaks during a meeting at the government complex in Seoul, Aug. 8. Yonhap

The chief of the financial regulator called on local companies to actively join the government-initiated corporate value-up program Monday, stressing the need to build a stock market that is "stronger" and can "recuperate faster."

Kim Byoung-hwan, head of the Financial Services Commission (FSC), made the call in a meeting with the heads of eight local businesses that have made public disclosures about their corporate value-up efforts or promised to do so in the near future.

"I understand there were views that our stock market showed a relatively greater decline (than others) and concerns about its slow rate of recovery," the FSC chief said, referring to the recent global stock market crashes caused by fears of U.S. recession.

The benchmark KOSPI plunged 234.64 points, or 8.77 percent, to close at 2,441.55 last Monday, marking the sharpest daily decline in history.

Kim earlier said the decline was "too excessive," considering what he called the country's strong economic and financial conditions.

"To build a stronger stock market with better recuperative powers, improving the competitiveness of listed firms and the stock market by expanding and promoting the corporate value-up program is important," he told Monday's meeting.

The corporate value-up program, launched late February, encourages local listed firms to boost their own capacities and also communicate directly to investors about such efforts through public disclosures, as part of government-led efforts to end the so-called Korea discount, where Korean shares are sold at prices lower than their fundamentals.

Kim stressed a need to transform the local market into a capital-centered market from a debt-centered one.

"By improving the debt-centered economic structure, we may contribute to enhancing the dynamics of our economy, improving market stability and ensuring sustainable growth," he said, according to the FSC.

Kim also highlighted continued support for the corporate value-up program, saying the government will unveil the new corporate value-up index next month as scheduled.

The index will be designed to offer a new investment indicator to investors, the FSC said earlier. (Yonhap)