South Korea needs to enhance corporate access to capital market in a bid to help the Asia's No. 4 economy maintain steady growth and create jobs, the nation's top

financial regulator said Thursday. "Corporate access to capital markets needs to be enhanced for the South Korean economy's steady growth. Emerging growth companies should be allowed to write a new growth story through smooth funding in the capital market,"Financial Services Commission (FSC) Chairman Kim Seok-dong said at a seminar held in central Seoul.

South Korea's capital market showed a quantum leap forward in line with its rapid economic growth, with its total capitalization in the stock market reaching 1,215 trillion won (1.13 trillion U.S. dollars) and ranking 16th globally. The number of listed firm ranked 9th, and transactions volume was in the 8th place. The country's GDP amounted to 1.1 trillion dollars as of 2011, ranking 15th globally.

Kim, however, noted that the local capital market faced challenges due to the continued global economic slump and the growing economic uncertainties, saying that local companies have increasingly given up or delayed rights offering and initial public offering (IPO) amid the worsening economic conditions.

Kim stressed over enhancing small firms' access to equity capital market, urging a fresh stock market only for emerging growth companies to be established as soon as possible. The market, tentatively named the Korea New Exchange (KONEX), was aimed at providing better access to capital markets for startups and growth companies.