Laws & Decrees
Laws and decrees related to the Financial Services Commission
- The Act for the Establishment of Financial Services Commission
Under the Amendment of the Act for the Establishment of Financial Services Commission which was enacted on Feb. 29, 2008, the Financial Services Commission was established by integrating the Ministry of Finance and Economy's financial policy function and the Financial Supervisory Commission's supervisory policy function to proactively deal with rapidly changing financial environment characterized by conglomeration, financial convergence, and globalization while separating policy-making and execution functions so as to enhance the responsibility of financial administration, thereby laying the groundwork for the advancement of the Korean financial Supervisory industry.
The FSC is responsible for the stability of financial markets, the promulgation and amendment of financial supervisory rules, the authorization and permission of establishment and mergers of financial companies, and the supervision of the Financial Services Commission, etc.
- The Act Concerning the Structural Improvement of the Financial Industry
The Act concerning Merger and Conversion of Financial Institutions, enacted by the Law No. 4341, March 8, 1991 tructural Improvement of the Financial Industry. This Act was amended again by the Law No. 5496, Jan. 8, 1998, in compliance with the enactment of the Act concerning Establishment of Financial Supervisory Organizations.
The purpose of this Act shall be to contribute to the balanced development of the financial industry by supporting the structural improvement of the financial industry such as the merger, conversion or reorganization of financial institutions, promoting sound competition between financial institutions and raising the efficiency of financial business.
- This Act includes regulations about :
- - Authorization for merger, conversion of financial institutions
- - Supporting merger of financial institutions
- - Management reform order to the troubled institutions
- - Recommendation of a receiver or liquidator in the event of bankruptcy
- - The liquidation or bankruptcy of the financial institution
- - Function of an agency involved in the bankruptcy procedure, etc.
- Any financial institution intending to merge each other or convert to any other type of financial institutions shall obtain authorization from the Minister of Finance and Economy. The merger procedure has also been simplified by this Act, such as shortening the observance period in the merger-related paragraphs in the Commercial Code or Securities & Exchange Act. In order to prevent the failure of the financial institutions, timely corrective measures are provided such as warning, sending notice, or requiring a management improvement plan, etc.