Cho Seung-rae Criticizes the Approval Process for Fragmented Investment and Calls for System Improvement

Cho Seung-rae, a member of the Democratic Party, raised concerns about the exclusion of innovative financial businesses in the approval process for the fragmented investment over-the-counter exchange by the Financial Services Commission (FSC) and demanded improvements to the system. He pointed out that companies that have pioneered the market through the government's regulatory sandbox are facing the risk of business suspension during the formal institutionalization process, emphasizing the need to ensure the fairness of the approval process and provide innovative companies with opportunities for re-challenge. On the 9th, Cho held a press conference at the National Assembly to address issues regarding the FSC's approval criteria and review process. The FSC has limited the number of approved fragmented investment over-the-counter exchanges to a maximum of two, and once the businesses that received preliminary approval start operations, Lucent Block must cease operations through existing distribution channels. Cho questioned whether it is reasonable to erect regulatory barriers in markets pioneered by small innovative companies, rather than providing preferential treatment to specific firms. Lawyers from a youth lawyer group advocating for fair value implementation attended the press conference, demanding that the performance of existing businesses be evaluated and that companies that failed to receive approval be given a chance for re-evaluation. Lawyer Ahn Hee-cheol raised concerns about the transparency of the approval criteria, arguing for a clear definition of the operational experience and performance evaluation criteria for existing businesses.