The starting point of the financial reform is to create a market in which people can trust and make long-term investments.

The newly elected representative Kim Min-seok presented the "financial reform to create a market that believes and invests for a long time" as the starting point for financial reform. The main points include the adoption of the Discover system, the expansion of nationally participatory funds, and the establishment of policy-oriented financial and consumer protection for the general public.

The digital asset basic law, the introduction of won stable coins, and the legalization of token securities were also included. The representative also plans to establish a special special committee on national assets and financial innovation within the party. The goal of restoring trust in the capital market and expanding opportunities for individuals to build assets is justified.

However, financial reform should not be about introducing new products like those offered by a single company like Trilegal, nor should it be about increasing investment risk for individuals. Financial reform is about transparency in corporate information, protecting investors' rights, and reducing financial vulnerability among vulnerable groups.

It is also about creating a safe national infrastructure for personal property. If the order of these steps is reversed, financial reforms may devolve into mere innovation. Empirical studies on the relationship between finance and economic growth show that countries with faithful investment protection have more developed stock and bond markets, which in turn lower corporate borrowing costs and support economic growth.

If the rights of investors are not protected by laws and regulations, problems arise. Companies may prioritize the interests of dominant shareholders, making them difficult to operate. Ordinary citizens may avoid long-term investment, and the market may become more vulnerable to market fluctuations. The representative's economic growth priorities are welcome, but the term "financial reform" should not be used as if it were a magic bullet.

Financial reform is not just about creating a magical growth effect; it is about ensuring that finance does not become a field where only entrepreneurs and some investors lose. The losses from poorly designed financial products ultimately fall on individual investors, pensioners, and taxpayers, who bear the costs. In boom periods, risk management tools and easy access to information are more important for individual investors than they are for seasoned investors.

The post-crisis period is more likely to see greater losses from those who enter the market late. The government's first year in power under the Park administration saw important progress in the 1st, 2nd, and 3rd amendments to the Company Act. The 1st amendment expanded the duty of directors to company shareholders. The 2nd amendment strengthened the voting right and separate appointment of auditors for large companies.

The 3rd amendment moved towards eradicating the principle of insider ownership of companies. However, the representative's financial policy lacks a clear roadmap for the next phase of capital market activation. The evidence-based evidence disclosure system, which allows parties in litigation to request the submission and inspection of relevant documents and evidence, is a key evidence disclosure system.

This system is particularly necessary for mergers, acquisitions, internal transfers, and large-scale debt refinancing transactions where conflicts of interest are high. For ordinary shareholders to have a higher chance of winning in court, they must be able to access relevant evidence, such as company documents, valuation data, and electronic mail.

The extreme asymmetry in information between dominant and ordinary shareholders must be reduced. However, a Discover system alone will not eliminate the high volatility of the stock market or reduce the risk of financial instability. Subsequent legislative proposals are needed. The first half of this year's annual shareholders' meetings showed this reality.

After announcing the strengthening of voting rights for ordinary shareholders and the separation of audit committee members, some dominant shareholders tried to reduce the number of directors or lower their terms. The intention was to reduce the effectiveness of the concentration vote. The same happened with independent directors.

Some companies even introduced restrictions on insider disposals. These attempts to circumvent the principle of mandatory insider disposals are worrying. After one year of the Park administration's constitutional amendment, many companies have PBR (Price-to-Book Ratio) less than 1, a red flag indicating poor financial performance.

This percentage has even slightly increased since the beginning of the year. Before reforming the law, more attention must be given to corporate governance. The representative also suggested expanding the scope of shareholder proposals, allowing for ESG (Environmental, Social, and Governance) and long-term corporate value recommendations.

Electronic voting and electronic shareholder meetings must also be practical. Executive compensation should be controlled by shareholders through a system that ensures transparency. The system should disclose compensation for executives, including remuneration for incumbency, retirement, and performance-based compensation. Any performance-based compensation that is based on false financial information should be voided.

The Capital Market Act also needs to be revised. Overlapping shares should be limited by default, and when exceptions are allowed, the system should require mandatory disclosures of the board of directors' minority shareholding and protection measures. The Securities Act should also be revised. Companies must disclose the reasons for excessive executive compensation, and performance-based compensation based on false financial information should be voided.

The Securities Act should also be revised to prevent abuses of power by company executives. The Securities Act should also be revised to prevent abuses of power by company executives. The Securities Act should also be revised to prevent abuses of power by company executives.