The FSC/FSS announced a new initiative aimed at significantly improving supervisory work processes for foreign financial service companies as a complement to efforts currently under way to streamline the existing supervisory and regulatory processes and make them more efficient, dynamic and investor-friendly in support of the Financial Hub Initiative. One key objective of the new initiative is to help improve business environment for foreign financial service companies by promptly responding to supervisory and regulatory concerns or difficulties they may have and provide more active assistance and services on a timelier basis in light of language and other unique problems they encounter in Korea.
Initially, the new initiative calls for the creation of International Supervision Support Office staffed by English-proficient professionals within the FSS and dedicated to providing a “one-stop” service to foreign financial service companies and the creation of International Supervision Advisory Committee. Supervisory matters relating to foreign financial service companies are to be put on fast track for accelerated review and decision-making by the committee.
International Supervision Support Office
The International Supervision Support Office, to be made up of Foreign Financial Service Company Support Team and Northeast Asia Financial Hub Team, will put forth and implement regulatory reform and supervisory assistance measures for foreign financial service companies in support of the Financial Hub Initiative. The new office will also receive and oversee regulatory approval requests for new financial products from foreign financial service companies and resolve problems they may encounter with business activities under FSC/FSS supervision. Regulatory decisions involving the establishment of a new commercial presence and M&A matters will continue to be handled by the appropriate supervisory department within the FSC/FSS. The Foreign Financial Company Support Team to be newly created within the International Supervision Support Office is to provide wide-ranging services and assistance for foreign financial service companies on supervisory and regulatory matters.
International Supervision Advisory Committee
The International Supervision Advisory Committee is to consist of the three FSS Deputy Governors and two to three outside specialists. The primary function of the committee will be to review major issues concerning foreign financial service companies that are handled by the International Supervision Support Office and to coordinate decision-making involving regulatory approval requests, difficulties and feedback from foreign financial service companies. The committee will also give foreign financial service companies an opportunity to participate in the committee discussions and present their positions whenever desirable or necessary.
Improving Feedback from Foreign Financial Service Companies
The FSC/FSS also plans to adopt new measures to improve feedback from foreign financial service companies. The new measures will likely include the hiring of outside consultants with experiences in foreign financial supervisory organizations and other supervisory expertise, establishing an international advisory committee made up of renowned scholars and respected financial professionals at home and from abroad, and instituting periodic surveys to monitor market participants’ perception of the supervisory authority and identify areas of weaknesses.
Improving Services to Foreign Visitors
Several steps are also planned to make visiting the FSC/FSS more convenient for foreign visitors. One is to redesign the FSC/FSS English homepages so as to make the organizational structure and the contact persons clear and easy to understand.
Another is directing all calls from foreign visitors and foreign financial service companies to the English-speaking staff at the International Cooperation Office. As a way to help improve foreign visitors’ understanding of the activities of the supervisory departments and the offices of the FSC/FSS, all the departments and offices are to prepare English documents and make them available to foreign visitors.
* Please refer to the attached PDF for details.