Capital Market Opinion (Ceased)
2014 Nov/18
Improvements to Korea’s Asset Management Regulation
November 18, 2014
PDF
Kim, Jongmin
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- Summary
- The US, EU, and UK all use a dual regulatory regime for privately and publicly placed funds, but Korea’s fund regulatory regime focuses on publicly placed funds, meaning more stringent regulation than other nations. Also problematic are the discrepancies in the regulations governing privately placed funds. Considering the innate nature of asset management and regulatory gaps with other nations, Korea needs to introduce a dual regime to regulate the asset management industry. The Korean government recently announced plans to reform the asset management industry regulation, and the contents are regarded as forward-looking and a shift in the right direction. Hence, it is expected that Korea’s regulatory regime for the asset management industry will transform into a dual system, and that the regulatory gaps with other nations will be somewhat resolved. The recent move should be used as an opportunity to continue improving the asset management industry regulation.