Introduction

Since the inauguration of the new administration, the government has put great emphasis on the importance of the financial industry as a main engine of growth for the nation's economy. To that end, the government is committed to providing all the support necessary with a particular focus on fostering the regulatory environment in which the financial market can thrive with maximum autonomy and momentum. In this way, the government wants to help laying out a solid basis for the local financial market to grow as an advanced market.

The Financial Investment Services and Capital Markets Act (FSCMA) was legislated in August 2007 and went into effect on February 4, 2009. The Act's main purpose is to sharpen Korean capital market's competitive edge in the global market. In line with this aim, the Act contains regulatory changes to enable the industry to provide combined products and services to consumers. This can be possible through the expansion of business scopes and implementation of more function-based regulations rather than sector-based ones.

As for the expansion of their business operational scopes, financial institutions are to enjoy much flexibility in product development, especially in diversifying financial products and services in line with the global trend toward diversification and securitization. Accordingly, the government's policy also aims to cultivate sophisticated financial environments, suitable for the current climate in the global financial market.

* Please refer to the attached PDF for details.