Financial Deregulations

Shin Je-yoon, head of the Financial Services Commission.
Shin Je-yoon, head of the Financial Services Commission.

 

Korea’s financial regulator is expected to ease conditions for individual investor participation in private equity funds (PEFs), while shortening the mandatory real estate ownership period of PEFs. 

Shin Je-yoon, head of the Financial Services Commission (FSC), said in an interview with an economic daily on October 14 that he would revamp regulations on PEFs to promote the asset management sector along with integrating four private equity funds into one or two.   

The FSC is going to such a plan as early as the end of this month. The plan aims to dramatically ease regulations on asset management and investors to meet global standards. 

The regulator will pull down the ratio of mandatory stock and bond investments for PEFs, and shorten the obligatory period of real estate ownership from the current five years to 1-3 years. 

The current limit of 1 billion won (US$933,000) on individual investors’ investment in PEFs will also either be abolished or increased to encourage their participation in the funds. Such measures would raise the current six percent share of individual investors among PEF buyers.

Copyright © BusinessKorea. Prohibited from unauthorized reproduction and redistribution