[Reporter’s Notebook] IMA Becomes a Testbed for Productive Finance... The Key Is "Genuine Venture Capital"

The reason why financial authorities immediately summoned the management after confirming Korea Investment & Securities and Mirae Asset Securities as the first Integrated Investment Account (IMA) operators in eight years since the system was introduced on the 19th, and Kiwoom Securities as an additional issuer of promissory notes, was clear. They demanded the supply of "genuine venture capital" that supports corporate growth by taking risks, rather than "venture capital in name only."

Why is there such an emphasis on venture capital investment? One of the core economic policy directions of the Lee Jaemyung administration is to shift unproductive liquidity, currently centered on real estate, into the capital market. The essence of so-called "productive finance" is the supply of venture capital, and this time, comprehensive financial investment companies (CFICs) have been tasked with taking the lead in this role. The financial authorities are not simply asking them to meet the mandatory ratio of 25% (venture capital investment as a portion of funds raised), but to actively inject capital into growth companies while accepting the associated risks.

The urgent need for funding among domestic mid-sized, small, and venture companies is not a new issue. However, in the current bank-centered funding structure, which prioritizes collateral, there is an inherent lack of risk tolerance. Ultimately, it is the capital market that must fulfill this role. The Lee Jaemyung administration accelerated the first IMA designation and the additional approval for promissory notes immediately after taking office for this very reason: to address these structural limitations. From the perspective of CFICs, managing IMAs and issuing promissory notes are essential to invest in corporate finance-related assets and to advance toward becoming global investment banks.

However, pressuring securities firms to expand venture capital without simultaneously strengthening their risk tolerance is ineffective. By nature, venture capital investment entails the risk of failure and uncertainty. It is not just a matter of increasing the supply, but an area that requires a complete redesign of risk-bearing capacity, management systems, and supervisory structures.

As of the end of last year, the proportion of venture capital within the total assets of CFICs stood at only 2%. There is still a prevailing preference within securities firms for indirect investment in small, mid-sized, and venture companies, rather than direct funding. Even a slight increase in risk assets can cause the net capital ratio (NCR) to plummet, immediately restricting core operations such as leverage and credit extension. As a result, "prudential regulations to prevent risk expansion" and "policy demands for risk investment" are inevitably in conflict. In this case as well, the authorities are simultaneously demanding an "actual expansion of venture capital supply," "prevention of liquidity risk," and "investor protection." This is an area where forward-looking regulatory easing by the financial authorities is necessary.

For venture capital investment to truly serve as a catalyst for innovation, a shift in perception among securities firms themselves is also needed. It should not be regarded as a "homework assignment forced by the government," but as an inherent role and responsibility necessary for the Korean financial investment industry to advance to the next level. In particular, the three firms newly designated and approved this time must recognize that how they utilize these funding tools could determine the structural transformation of the Korean financial investment market. If they aspire to become major investment banks, it is even more essential to strengthen their corporate finance capabilities, moving beyond short-term market trends and a fee-based business structure. Furthermore, rather than becoming fixated on the title of "first IMA product" and engaging in excessive speed competition, they should focus on increasing investors' assets by sequentially expanding their product portfolios from stable to high-yield products.

This content was produced with the assistance of AI translation services.