KOREA CAPITAL MARKET INSTITUTE

Since the global financial crisis in 2008, there have been continuing policy efforts to improve the stability and transparency of the financial system. Strengthening public supervision of benchmarks used in financial transactions (interest rate benchmarks) is emerging as the most important and attention-grabbing international policy agenda in relation to financial regulatory reform. In the wake of the LIBOR-fixing scandal in 2012, major developed countries under the leadership of the Financial Stability Board, an international body for financial regulatory reform, have been striving to enhance the transparency and reliability of financial benchmarks. The EU and the UK have enacted laws regulating the calculation, administration and applications of benchmark rates such as LIBOR and EURIBOR. Japan, Australia and Singapore have also laid down legal and regulatory frameworks for financial benchmarks. 

Since last year, the Korean government and related organizations have also continued active discussions on the enactment of a financial benchmark law designed to tighten public oversight of benchmarks. This new law will bring Korea in line with the recent global financial regulatory move towards tougher benchmark regulation. Not only that, it is expected to increase the transparency and reliability of Korea’s key benchmarks including CD and COPIX rates, greatly contributing to protecting financial consumers.  

Against this backdrop, Korea Capital Market Institute (KCMI), together with the Financial Services Commission (FSC), will host a policy seminar on the enactment of the financial benchmark bill. This seminar will not only share the purpose and key elements of the proposed benchmark legislation, but also seek ways to formulate a regulatory framework that improves benchmark stability and transparency.