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| Financial Services Commission Chairman Choi Jong-ku, center, poses with the heads of local financial groups and policy banks ahead of their meeting on innovation at the Korea Federation of Banks in Seoul, Tuesday. Yonhap |
By Park Hyong-ki
The country's financial regulator will inject 4 trillion won ($3.4 billion) into the market through a state venture fund aimed at creating "new and advanced" industries this year.
In a taskforce meeting with the heads of local financial groups in Seoul, Tuesday, Financial Services Commission (FSC) Chairman Choi Jong-ku said this was part of the 10 trillion won fund it has set aside with local financial companies to develop new industries for the next three years.
"We can additionally allocate 2.5 trillion won depending on market demand," Choi said.
"Also, we will back policy banks to increase tech financing amid the downside risk to the economy."
Choi added it will have a revision ready by the end of June, cutting the stock transaction tax rate by 0.05 percentage points to 0.25 percent and enabling lenders to extend more loans backed by tech companies' intangible assets such as intellectual property.
This comes as companies have mostly relied on bank loans backed by tangible assets such as real estate.
Also, the capital market has been too centered on big listed companies, with few investors eyeing smaller companies with high technological potential.
The regulator seeks to divert investors and funds from the real estate market to the capital market so smaller innovative companies can get the money to finance their research and commercialization.
