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Signing of Statement of Protocol with U.S. PCAOB

    Signing of Statement of Protocol with U.S. PCAOB

    March 21, 2007
  • The Financial Supervisory Commission and the Financial Supervisory Service announced the signing of Statement of Protocol (“Statement”) with the U.S. Public Company Accounting Oversight Board (PCAOB) on March 21. The Statement, signed by Mr. Yoon Jeung-Hyun, Chairman of the FSC and Governor of the FSS, and Mr. Mark Olsen, Chairman of the PCAOB, in Seoul, is intended to facilitate cooperation in matters related to the oversight of the auditors of both countries and thereby contribute to improved accuracy and reliability of audit reports.

  

Road Map for the Adoption of International Financial Reporting Standards

    Road Map for the Adoption of International Financial Reporting Standards

    March 16, 2007
  • The Financial Supervisory Commission held a ceremony together with Korea Accounting Institute on Thursday, March 15, to mark the announcement of the road map for the adoption of International Financial Reporting Standards (IFRS).

  

New Measures for Junk Bond Funds

    New Measures for Junk Bond Funds

    March 09, 2007
  • The Financial Supervisory Service issued new supervisory measures for high-yield funds commonly known as “junk bond funds” pursuant to recently amended tax law provisions that apply a reduced tax rate for funds that invest 10% or more of the assets on speculative-grade corporate bonds and commercial papers. The new measures set forth the scope of corporate debt securities to be open to junk bond funds as well as stipulations and disclosures to be made in the investment contract and prospectus for junk bond funds.

  

Asset-Liability Analysis of Domestic Banks: 2006

    Asset-Liability Analysis of Domestic Banks: 2006

    March 05, 2007
  • An asset-liability analysis of domestic banks by the FSS shows bank assets totaled KRW1,191 trillion (average account balance basis) for 2006, up 11.0% or KRW118 trillion from KRW1,073 trillion for 2005. Loans and securities made up the bulk of the assets with the proportion of loans increasing from 67.6% to 68.3% and that of securities falling slightly from 21.6% to 20.9%. A 17.9% jump in loans to small- and medium-sized companies along with a 14.4% increase in housing loans during the year mostly accounted for the changes. On the liabilities side including equity, the proportion of deposits dropped from 53.4% a year earlier to 49.6%. The rest were mostly made up by debt issues (15.4%), borrowings (13.8%), and certificates of deposits (5.6%).

  

New Disclosure Measures for Foreign Securities Issuers

    New Disclosure Measures for Foreign Securities Issuers

    February 02, 2007
  • The Financial Supervisory Service announced several new measures it plans to adopt in order to fine-tune disclosure regulations on foreign securities issuers toward global standards amid growing interest among foreign companies to make public offerings or list in Korea. The FSS also plans to issue a new publication entitled “Guide to Stock Offering and Listing by Foreign Issuers” that explains the stock offering and listing processes and related regulations (in Korean).

  

FSS to Launch Electronic Foreign Investor Registration and English DART Website

    FSS to Launch Electronic Foreign Investor Registration and English DART Website

    February 01, 2007
  • The Financial Supervisory Service will launch an electronic registration system for foreign investors and open an English DART website (http://enlgishdart.fss.or.kr) as part of an ongoing effort to simplify foreign investors’ investment procedures and improve their access to corporate information. DART, which stands for Data Analysis, Retrieval, and Transfer, is the FSS electronic disclosure system companies use to transmit regulatory filings and ongoing disclosures via the Internet.

  

Preliminary Bank Net Income for 2006

    Preliminary Bank Net Income for 2006

    January 24, 2007
  • Preliminary figures show domestic banks’ net income for 2006 will come to KRW13.49 trillion, compared with KRW13.63 trillion for 2005. Interest income rose KRW1.51 trillion on sharply increased lending, but the overall net earnings were held back by a KRW1.73 trillion jump in income tax expenses (partly from a drop in losses carried forward) for 2006. Operating and nonoperating income for the year totaled KRW13.26 trillion and KRW4.12 trillion, respectively.

  

FSC Proposes to Merge Korea Exchange's Dual Futures Trading Systems into Single Trading System

    FSC Proposes to Merge Korea Exchange's Dual Futures Trading Systems into Single Trading System

    January 18, 2007
  • The Financial Supervisory Commission announced a proposal to integrate the dual futures trading systems of Korea Exchange into a single integrated trading system in order to facilitate trading in futures and improve market efficiency. Currently, two different futures trading systems—KOSPI futures trading system and Korea Treasury Bond (KTB) futures trading system—that were used by Korea Stock Exchange (KSE) and Korea Futures Exchange (KOFEX) before they were brought under the Korea Exchange are in use. Because of its dual nature, the current trading system is said to inflate transaction cost to investors and create system inefficiencies.

  

FSS Launches Online Search & Retrieval Tool for Legal and Regulatory Statutes Governing Financial Supervision

    FSS Launches Online Search & Retrieval Tool for Legal and Regulatory Statutes Governing Financial Supervision

    January 12, 2007
  • The Financial Supervisory Service opened a new online search & retrieval system for legal and regulatory statutes governing financial supervision along with their interpretations and applications on January 9. The new tool, a Korean-based website database that can be launched from the FSS Internet homepage, holds more than 1,900 separate entries (over 30,000 pages) on legal and regulatory statutes pertaining to financial supervision as well as their administrative and judicial interpretations and applications and explanation of FSS administrative procedures and financial supervision. The database for the new search & retrieval system is set to be updated each month and is expected to increase by approximately one thousand new entries a year henceforth.

  

Regulation on Supervision of Electronic Financial Transactions Taking Effect January 1, 2007

    Regulation on Supervision of Electronic Financial Transactions Taking Effect January 1, 2007

    January 05, 2007
  • The FSC/FSS announced new rules and regulations on electronic financial transactions that pave the way for the oversight of financial service providers facilitating electronic financial transactions in support of the Electronic Financial Transactions Act that took effect January 1, 2007.* The new rules and regulations, which also took effect at the beginning of the year, are primarily aimed at ensuring the security of electronic financial activities and protecting consumers. The following is an outline of the newly announced rules and regulations.