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Jan 29, 2013
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Dec 12, 2012
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Dec 06, 2012
- First Annual Status Report on the Hedge Fund Industry
- RECENT TRENDThe total asset size of Korea’s hedge fund market has grown to KRW 1 trillion with 12 active management companies with 19 registered funds in a year since it started from KRW 149 billion with 9 fund management companies with 12 funds. (unit: KRW 1 billion) Dec 2011 Mar 2012 Jun 2012 Sept 2012 Nov 2012 total assets 2,370 5,509 6,546 7,858 10,175 (percentage*) (0.2%) (0.5%) (0.6%) (0.7%) (0.8%) no. of funds 12 17 19 20 19 (no. of mgmt (9) (11) (11) (12) (12) companies) * Percentage of asset size of hedge funds out of the total private equity industryHedge funds’ management strategy and investors have been diversified for the last year. Most of hedge funds still rely on long- short strategies; however, the industry plans to sell funds using a variety of strategies such as arbitrage trading and event-driven strategies.Investors’ pool is widening from prime brokers and affiliated companies with brokerage firms in the early stage to institutional investors and affluent retail investors.EVALUATIONThe hedge fund industry made a soft landing in Korea’s capital markets, dismissing initial concerns that the introduction of hedge funds might increase market risks. Hedge fund managers are building their reputation in the market with differentiated performance. As track records of funds with good performance build up, the size of assets under management for such funds is expected to increase.With improved market perceptions about hedge funds, investors’ pool is expected to be expanded to corporations and pension funds.POLICY DIRECTION AHEADIn order to attract capable managers, requirements for approving hedge fund management were relaxed as announced in July 2012. With the eased requirements, the approval process will be completed for asset managers that submit application in December by the end of this year.It is expected a total of 23 firms including 12 asset management companies, 5 brokerage firms and 6 advisory firms will submit application for hedge fun
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Nov 22, 2012
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Oct 12, 2012
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Jun 21, 2012
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Jun 14, 2012
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May 31, 2012
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May 07, 2012
- Four Mutual Savings Banks Ordered to Suspend Operations
- In a provisional meeting held on May 6, 2012, the Financial Services Commission (FSC) ordered four mutual savings banks – Solomon, Korea, Mirae and Hanju – to halt operations for six months to improve their finances after determining them as “financial institutions in distress”.The order came as a result of the inspection by the Financial Supervisory Service (FSS) and a joint committee’s review on six mutual savings banks, which were ordered on September 18, 2011 to normalize their business operations within a grace period. The suspended four mutual savings banks were among the six.Background and ProgressThe government cleaned up nine troubled mutual savings banks – Samhwa, Busan, Daejeon, Busan II, Jungang Busan, Jeonju, Bohae, Domin, Kyongeun – in the first half of 2011 to resolve the mutual savings bank issue.For the seven weeks from July 5 to August 19, 2011, a management assessment taskforce consisting of the FSS and the Korea Deposit Insurance Corporation (KDIC) inspected 85 mutual savings banks’ management situations* in a preemptive move to remove uncertainty about mutual savings banks.* Out of 98 savings banks in operation as of end-June 2011, 13 savings banks were exempted from the inspection as they already went through inspections in the first half of 2011.On September 18, 2011, the FSC suspended business operations of seven mutual savings banks – Daeyeong, Ace, Prime, Parangsae, Jeil, Jeil II and Tomato – for six months, out of 13 mutual savings banks which had been determined as in distress subsequent to the inspection by the FSS and the review of their management improvement plans.The remaining six savings banks were given a grace period before being ordered to shut down their operations, consequent to the management assessment committee’s approval and a possibility of independent normalization.The FSS conducted inspections of the six savings banks to assess their progress on management improvement plans and additional distress f
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Apr 30, 2012
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Apr 13, 2012
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Mar 29, 2012
- FSC Signs MOU with Vietnamese Finance Ministry for Cooperation in Insurance Supervision
- The FSC Chairman Kim Seok-dong and the Vietnamese Finance Minister Vuong Dinh Hue signed an MOU on March 29, 2012 to expand bilateral cooperation and information sharing in supervision of the insurance sector.The MOU covers a variety of cooperative tasks such as cooperation between the two supervisory authorities, information sharing, establishment of cooperation channels between high-ranking officials of the two countries, and training programs.With the signing of the MOU today, Korea and Vietnam have completed signing MOUs covering supervisory authorities in the banking (August 2006), securities (January 2002), and insurance (March 2012) sectors, which will lead to further cooperation in finance between the two countries.The FSC has so far signed a total of 28 MOUs with 31 financial authorities in 18 countries and one international organization. It will continue to expand cooperative partnership in finance with the G20 major economies and emerging countries.*[US] Federal Reserve Board (FRB), Securities Exchange Commission (SEC), National Association of Insurance Commissioners (NAIC)[UK] Financial Services Authority (FSA)[China] China Banking Regulatory Commission (CBRC), China Securities Regulatory Commission (CSRC), China Insurance Regulatory Commission (CIRC)[Turkey] Banking Regulation and Supervision Agency (BRSA), Capital Markets Board (CMB) etc.*Please read the attached file for details.
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Mar 12, 2012
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Jan 30, 2012
- Approval for HFG's Acquisition of KEB
- The FSC approved Hana Financial Group (HFG)’s acquisition of Korea Exchange Bank (KEB) at its regular meeting on January 27, 2012.Under the Financial Holding Companies Act, a potential acquirer is required to meet the following three conditions: (1) The business plan of a company included as a subsidiary shall be appropriate and sound; (2) The financial standing and business management of such financial holding company and its subsidiary shall be sound; and (3) The funding plan for acquisition shall be appropriate.In granting approval, the FSC shall consult in advance with the Fair Trade Commission (FTC) as to whether the merger or acquisition substantially limits competition in the relevant market.In regard with this matter, the FTC notified the FSC on December 29, 2011 that such acquisition would not substantially limit competition in the relevant market.The FSS also notified the FSC on January 27, 2012 that HFG satisfies the requirements under the Financial Holding Companies Act to acquire KEB as its subsidiary.(1) KEB’s business plan is appropriate to keep its operations and maintain the managerial soundness of HFG and KEB.(2) As of end-September 2011, the BIS capital adequacy ratios of HFG (13.05%) and KEB(13.98%) meet the standard set by the FSC.(3) HFG’s acquisition of KEB was partly funded by its own debt; however, there is no concern that it would significantly hurt its managerial soundness.With approval for HFG’s acquisition of KEB, KEB’s 13 subsidiaries will be included as lower-tier subsidiaries of HFG. As a result, the number of HFG’s subsidiaries will increase from 8 to 9; and lower-subsidiaries from 9 to 22.As a result of the acquisition, seven of all domestic banks will belong under financial holding companies.Hana Financial Group1. General Information- Establishment: 2005.12.01- CEOs: Kim Seung-Yu, Kim Jong-Yeol- Head Office: 101-1 Euljiro 1-ga, Jung-gu, Seoul, Korea- Number of Employees: 12,8702. Financial Analysis (units in KRW, %)- To
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Dec 06, 2011
- Joint FATF/APG Typologies Workshop 2011 Held in Busan
- The Korean government will be co-hosting an international conference on Anti-Money Laundering and Combating Financing of Terrorism (AML/CFT) in Busan for six days from December 5th to 10th. The Financial Intelligence Unit (KoFIU) of FSC will be representing the Korean government.The Joint FATF/APG Typologies Workshop 2011, jointly hosted by the Financial Action Task Force and the Asia Pacific Group on Money Laundering, groups of Financial Intelligence Units around the world setting the guidelines and implementing supervisory rules on AML/CFT issues. They are made up of 36 OECD nations and 40 Asia-Pacific nations respectively including Korea, Japan, Canada and the U.S.Roughly 250 representatives from 45 countries and 15 international institutions including the UN, IMF, and World Bank will be participating at the conference.Discussions will be around the following four major topic areas: A. Trade Based Money Laundering; B. Illicit Tobacco Trade; C. Guidance on Financial Investigation; and D. Laundering the Proceeds of Corruption.This would be the first time the City of Busan, which has been designated as one of Korea’s official financial hubs, is holding an international conference on AML/CFT of this magnitude and scale, which will raise the city’s international reputation.The FSC Chairman Kim Seok-Dong will be giving the keynote address emphasizing the need to find innovative countermeasures in response to the rising of newest tactics on money laundering as well as the necessity to narrow the compliance gap between FATF and APG member nations.The Congressman and Chairman Huh Tae-Yeol of Korea’s National Policy Committee will give the welcoming address emphasizing the need to strengthen AML/CFT efforts to combat against the risks and treats to international financial system that oppresses universal values such as democracy and human rights, calling for great international cooperation.*Please read the attached file for details.
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Nov 29, 2011
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Sep 18, 2011
- FSC Suspended Seven Mutual Savings Banks
- The Financial Services Commission (FSC) held a provisional meeting today and decided to suspend business operations of seven mutual savings banks – Jeil, Jeil II, Prime, Daeyeong, Ace, Parangsae, and Tomato – for six months.According to the result of the inspection by the FSS, six of the suspended savings banks – Jeil, Prime, Dae Young, Ace, Parangsae, and Tomato – were found to have their BIS capital adequacy ratio below 1%, and their debts exceed assets.As the plans for normalization submitted by the six savings banks were disapproved by the review committee, they were determined as insolvent and ordered to raise their capital adequacy ratios and normalize their businesses within 45 days in order to resume their operations.Jeil II was suspended because ①its BIS capital adequacy ratio is below 1%; ②there is a strong likelihood that the suspension of its parent company, Jeil, will lead to depositors’ bank runs, causing liquidity crunch; and ③it requested suspension.*Please read the attached file for details.
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Sep 15, 2011
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Sep 09, 2011
- FSC/FSS to Host 18th Annual Conference of the IAIS
- The Financial Services Commission and the Financial Supervisory Service of Korea (FSC/FSS) will host the 18th Annual Conference of the International Association of Insurance Supervisors (IAIS) from September 29 to October 1, 2011, at the COEX Convention Center in Seoul. Approximately 500 insurance supervisors and industry representatives as well as senior officials from international organizations including the IMF and World Bank are expected to attend this year's conference. The theme for this year's meeting is "Toward a New Horizon for Insurance Supervision: Cross-Sector Cross-Border Harmonization and Cooperation," and discussions on wide-ranging supervision and industry issues and topics including insurance standards, risk management, and consumer protection are scheduled.The 2011 Annual Conference will be the third international conference on insurance supervision that the FSC/FSS hosts after the Asian Forum of Insurance Regulators in June 2007 and the IAIS Triannual Meetings in June 2008. The FSC/FSS is pleased to host this year's meetings and welcomes all IAIS members, observers, and guests to Seoul for the important gathering. As this year's Annual Conference demonstrates, the FSC/FSS will continue to support and contribute to the mission of the IAIS to set effective global insurance standards and facilitate supervisory cooperation across countries.Established in 1994, the IAIS is the international insurance standard-setting body representing insurance regulators and supervisors from 190 jurisdictions in some 140 countries and works closely with other financial sector standard-setting bodies and international organizations such as the Basel Committee on Banking Supervision and the International Association of Securities Commissions to contribute to global financial stability. It is headed by Executive Committee with members representing various geographical regions and supported by three key committees in its work of issuing global insurance principles, stand
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Sep 05, 2011
- Hotline Established among Financial Authorities in Korea, China and Japan
- FSC Vice Chairman Shin Je-Yoon will be hosting a vice-minister-level conference call on September 6 at 10am with China Banking Regulatory Commission (CBRC) and the Financial Services Agency (FSA) of Japan.*Attendees: Shin Je-Yoon, Vice Chairman, Financial Services Commission, KoreaWang Zhaoxing, Vice Chairman, China Banking Regulatory Commission, China Masamichi Kono, Vice Commissioner, Financial Services Agency, JapanThe conference call was arranged out of shared recognition that close cooperation among the financial authorities in Korea, China and Japan has become all the more important in order to effectively respond to financial crises as anxiety heightens in global financial markets due to concerns about fiscal soundness of the US and Europe.*Korea first proposed to establish Korea-China-Japan hotline among the financial authorities, which was welcomed by China and Japan.Discussions will be made on the current conditions of the global economy and financial markets; and future outlook of the global economy. We will also exchange our opinions about each country’s current domestic financial market issues; and discuss details about how to operate the hotline such as whether to hold conference calls on a regular basis.*Please read the attached file for details.