Seo Yoo-seok, chairman-nominee of the Korea Financial Investment Association (KOFIA), speaks at its headquarters in Seoul, Dec. 23. Courtesy of Korea Financial Investment Association

By Lee Min-hyung

Seo Yoo-seok, the new head of the Korea Financial Investment Association (KOFIA), is tasked with alleviating the ongoing stock market turmoil and lingering risks surrounding the liquidity crunch in the real project financing market.

The former leader of Mirae Asset Global Investments will take office as the sixth chairman of the association from the start of 2023 with a three-year tenure. Seo made headlines as he is the first to take the position from the asset management industry. Thus far, only ranking officials from securities circles have held the top post of the association.

He pledged to enhance communication with the market and the government to ease financial market turbulence next year.

"The possibility of a real estate-sparked liquidity crunch will remain in place throughout 2023 even," he said. "We are going to keep receiving opinions and enhancing communication (with our members) to evade any problems from the lack of liquidity."

Seo is expected to start his new role with a heavy heart at a critical time when fears of a recession are looming larger, along with a set of other financial uncertainties represented by continued interest rate hikes and inflationary woes here and abroad.

He is also on high alert to prevent brokerage houses from possibly going into crisis over a sequential liquidity crunch after Legoland developer Gangwon Jungdo Development Corp. defaulted on its debt payments in Gangwon Province.

"Securities firms should not face any temporary problems due to the lack of liquidity," he said. "The government and relevant authorities also share a common view. We are going to listen to specific opinions from our members and find solutions."

Seo's career includes having held the post of chief of Mirae Asset Global Investments for five years since 2016. He also handled multiple tasks in the marketing, retail business and retirement pension divisions at Mirae Asset Securities.