The newly announced capital‑management regulations by the government contain measures aimed at addressing global financial turbulence and stabilising domestic markets. The Ministry of Finance and the Financial Supervisory Commission intend, through this measure, to impose a strict performance‑improvement obligation on foreign and institutional investors, thereby strengthening efforts to attract investment and cash outflow capability.
First, the government has redefined the existing “portfolio rebalancing” mechanism. This seeks to curb the concentration of large capital in the market and reduce investors’ long‑term risk while raising transparency in domestic financial markets.
Second, to prevent a “big‑hand” from dominating the market, the government strengthens investment attraction efforts and cash outflow capability. This applies not only to foreign investors but also to all types of investors both domestically and abroad, thereby ensuring transparency and minimizing long‑term risk.
Third, the government seeks practical performance improvement rather than merely structural changes. To this end, the Ministry of Finance will issue clear guidelines for institutional investors and foreign investors on investment strategies and establish a reporting system that links cash outflow capability to performance improvement.
Fourth, this measure is a comprehensive solution aimed at addressing the problem of “global financial turbulence and long‑term risk.” The government expects that strengthening investment attraction efforts and cash outflow capability will raise domestic market stability and enhance responsiveness to global economic turbulence.
In conclusion, Korean Economic Daily informs readers and investors about these regulations, noting that legal responsibilities and service restrictions may apply. Thus the Ministry of Finance aims to secure public trust and provide a stable market environment for both domestic and foreign investors.