Press Releases - Financial Services Commission

Press Releases

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May 17, 2007

New Electronic Foreign Investor Registration Service to Begin June 1

The Financial Supervisory Service announced that a new electronic registration service that processes foreign investors’ registration applications and issues registration certificates electronically will begin June 1, 2007.Launched as part of an ongoing effort by the FSS to continually improve Korea’s investment climate for global investors, the new electronic registration service utilizes the financial information network shared by the FSS and financial institutions for information exchange. A foreign investor using the new electronic registration service may send the registration documents via the designated financial institution (agent) and receive the registration certificate electronically. A foreign investor may designate an agent financial institution from banks, securities companies and Korea Securities Depository (KSD). Registration certificate issued by the FSS is used as a verification of the investor’s lawful identity.The new electronic registration service is a significant improvement from the current paper-based registration, under which a foreign investor submits (through an agent financial institution) the registration application along with the supporting documents to the FSS and waits up to four days for the registration certificate. Under the new electronic service, the processing time for a new registration certificate is expected to be shortened to approximately four hours.The FSS also plans to provide information on Korea’s investment procedures in English on the FSS Internet homepage (http://english.fss.or.kr/fsseng/index.jsp) beginning July 1, 2007. It will include explanations on Korea’s investor registration system, the registration procedure, and rules and regulations pertaining to investor registration. By providing easily accessible online information on investor registration in English, the FSS hopes to enhance global investors’ understanding of Korea’s investment climate and stimulate new interest in Korea’s stock marke
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Mar 21, 2007

Signing of Statement of Protocol with U.S. PCAOB

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.The Statement consists of four key provisions on cooperation relating to inspection, investigation, sanction, and confidentiality. In respect of cooperation in an inspection, the Statement provides that each regulatory authority may, on behalf of or in support of the other, review audit papers, conduct interviews of an audit firm’s personnel, and assess an audit firm’s quality control system. In determining sanctions for accounting firms that fall within the regulatory jurisdiction of both the FSC/FSS and the PCAOB, the Statement provides that each regulatory authority shall endeavor to take into account the laws and regulations of the other. In respect of confidentiality, the Statement calls on both the FSC/FSS and the PCAOB to hold confidential documents and information created or received in the course of cooperation.For the FSC/FSS, the signing of the Statement is the first ever with a foreign audit oversight authority, and the expectation is that the Statement will contribute to enhanced cooperation on the oversight of accounting firms between the two countries. With regulators elsewhere stepping up oversight of auditors of multinational companies whose securities are traded in their markets, the FSC/FSS will endeavor to enter into similar cooperative arrangements with other foreign regulatory authorities in order to avoid duplicate audit supervision and reduce compliance cost.* Please refer to the attached PDF for detail
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Mar 16, 2007

Road Map for the Adoption of International Financial Reporting Standards

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). Mr. Yoon Jeung-Hyun, Chairman of the FSC, gave the keynote address at the ceremony and noted that the road map marked a milestone in Korea’s embrace of global accounting standards. A number of dignitaries, including Sir David Tweedie, Chairman of the International Accounting Standards Board (IASB), and Mr. Tatsumi Yamada, a member of the IASB Board, also attended the ceremony to offer congratulatory remarks.Background of the IFRS road mapMuch progress has been made with the efforts to improve the accounting standards and strengthen the oversight of corporate financial reporting in the years following the 1997 financial crisis. But it has been generally assumed that the level of confidence of foreign investors and others in Korea’s corporate accounting has not matched the efforts undertaken thus far, in part because of accounting standards that differ from IFRS and other globally prevailing standards. With the globalization of capital markets and a growing need for accounting consistency worldwide, the road map the FSC announced on March 15 represents a major step forward that will significantly improve the comparability, the reliability, and the transparency of Korea’s corporate financial reporting in many meaningful ways.Outline of the IFRS road mapFinancial reporting under IFRS will be made mandatory for all listed companies.Simplified accounting procedures will be permitted for unlisted companies to avoid any undue compliance cost. Unlisted companies may also elect to issue financial statements under IFRS, but once IFRS is elected it may not be rescinded and replaced.Financial statements under IFRS may be reported beginning in 2009 (excluding financial service companies) and will be made mandatory for all listed companies beginning
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Mar 09, 2007

New Measures for Junk Bond Funds

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.1 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.Under the amended tax law provisions, an investor who invests in a junk bond fund for more than a year and up to three years is eligible for a 5% tax rate for any gains from investment up to KRW100 million. There is no additional tax benefit for investment held in a junk bond fund beyond the three-year or the KRW100 million cap. For foreign investors, there is no limit on investment amount eligible for the reduced tax rate. These rules apply to junk bond funds that are newly created after January 1, 2007, and invest only in domestic assets with 60% or more in bonds and 10% or more in the eligible debt securities.2Debt securities designated eligible for reduced tax rateCorporate bonds rated between BB and C and commercial papers rated either B or C by at least two credit-rating companies are eligible for the reduced tax rate. Investment-grade ratings vary from AAA to BBB for bonds and from A1 to A3 for commercial papers. Speculative-grade ratings range from BB to D for bonds and from B to D for commercial papers.Investor protection measuresInvestment contracts for junk bond funds are to stipulate the portfolio requirements to be met to be eligible for the reduced tax rate.For investment in subordinated debt, which is expected to be open to junk bond funds, the investment contract should stipulate both the credit rating and the proportion of the subordinated debt to be included in the fund portfolio.The prospectus should come with full disclosures on the
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Feb 02, 2007

New Disclosure Measures for Foreign Securities Issuers

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).Regulations on public offering and listing by foreign issuers have been continually amended and fine-tuned to global standards since 2005. They include primary listing of foreign companies and foreign holding companies along with globally accepted listing standards (Dec. 23, 2005), exemption from mandatory IPO allotment (20%) to employee stock ownership plan (Feb. 15, 2006), mandatory designation of domestic agent for investor protection (Sept. 13, 2006), and simplified reporting format for foreign issuers (Jan. 24, 2007).New Disclosure Measures for Foreign IssuersThe FSS is planning to adopt several globally accepted investor protection measures in response to public stock offering plans by foreign entities that are incorporated as holding companies offshore in places such as Bermuda and Cayman islands.Disclosure on subsidiary unitsFinancial and non-financial disclosures are to be provided on a consolidated basis for the subsidiary units of offshore holding companies in order to ensure appropriate disclosures on the business activities of subsidiary units that effectively represent the activities of the holding company.Financial disclosures include financial statements and audit opinion from an independent external auditor. Non-financial disclosures include disclosures on key business activities, board of directors, affiliated companies, management makeup, and transactions with related parties.Disclosure on corporate governance structureDisclosures on the corporate governance structure of offshor
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Feb 01, 2007

FSS to Launch Electronic Foreign Investor Registration and English DART Website

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.Electronic Registration of Foreign InvestorsUnder the current procedure, a foreign investor (or an agent) who wishes to acquire shares of listed companies and other exchange-traded securities submits an investment registration application along with the supporting documents to the FSS in person and returns three to four days later for the registration certificate.The new registration system, which is set to begin in May this year, will enable foreign investors to file investment registration applications and receive registration certificates electronically through financial institutions acting as their agents.Because the system utilizes information and telecommunication networks and electronic document exchange systems already used by financial institutions, no additional cost is expected from foreign investors or financial institutions. With electronic registration, the issuance of registration certificate, which numbers about 2,000 a year, is expected to be shortened from up to four days to no more than four hours.Opening of English DART WebsiteThe FSS will also open an English DART website (http://englishdart.fss.or.kr) on February 1 to improve foreign investors’ access to disclosures filed by Korea’s publicly traded companies. Foreign investors can use the English DART website to search all English disclosure documents voluntarily transmitted to DART and to Korea Exchange as well as corporate information available in English at Korea Listed Companies Association.The English DAR
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Nov 10, 2006

Asset Management Companies' Preliminary Net Income:First Half of FY2006

Regulatory filings by 49 asset management companies–36 domestic and 13 foreign–show preliminary net income for the first six months of FY2006 ended September 30 totaled KRW150.9 billion, up KRW93.6 billion from KRW57.3 billion a year earlier. Pretax income came to KRW200.0 billion, compared with KRW78.5 billion a year earlier.A large increase in management fees boosted by a surge in investment into stock funds pushed asset management companies’ net income for the period. Management fees, which averaged 63 basis points at end-September, compared with 58 basis points a year earlier, jumped KRW124.8 billion or 67.1% to KRW310.7 billion. Investment in stock funds, which typically generate higher management fees than other funds, more than doubled from KRW21.9 trillion at end-September, FY2005, to KRW46.4 trillion.Domestic asset management companies’ pretax income for the period totaled KRW155.8 billion, an increase of KRW91.2 billion or 141.2% from a year earlier. For foreign asset management companies, the total come to KRW44.2 billion, compared with KRW13.9 billion a year earlier.As of end-September, assets under management totaled KRW230.7 trillion (net asset basis), an increase of KRW25.2 trillion or 12.2% from KRW205.5 trillion a year earlier. Both stock funds and hybrid funds grew by KRW24.5 trillion and KRW9.5 trillion, respectively, from a year earlier, but money market funds fell by KRW15.5 trillion during the period. Assets under the management of domestic asset management companies came to KRW191.4 trillion. For foreign asset management companies, the total was KRW39.3 trillion.* Please refer to the attached PDF for details.
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Sep 12, 2006

Equity Disclosure Filings First Half 2006

An analysis of disclosure filings for investment in listed companies for the first six months of 2006 showed a total of 2,397 investors held five percent or more equity interests in 1,624 listed companies (700 Stock Market-listed and 924 KOSDAQ-listed). During the period, 2 tender offers and 122 proxy solicitations were made, compared with 5 and 108, respectively, during the same period a year earlier.Disclosures Filed under the “Five-Percent Rule”Disclosures filed under the five-percent reporting rule for the first six months of the year totaled 4,157, compared with 4,499 for H2, 2005, and 5,717 for H1, 2005. The total for H1, 2005, includes 1,791 re-filings made under the amended reporting rule that took effect March 29, 2005. Excluding the re-filings, the total for H1, 2005, was 3,926. Filings by foreign investors have steadily increased since 2003.By investment purpose, filings for exercising influence on the management totaled 1,609 (1,580 companies: 666 Stock Market-listed, 914 KOSDAQ-listed) as of the end of June. Those for investment only totaled 872 (1,139 companies: 516 Stock Market-listed, 623 KOSDAQ-listed).Filings by Foreign InvestorsA total of 307 foreign investors–288 legal entities and 19 individuals–held five percent or more equity interests in 505 listed companies, of which 242 were Stock Market-listed and 263 KOSDAQ-listed.Tender Offer FilingsTwo tender offer filings involving Choong Nam Spinning Co., Ltd. were made during the first six months of the year. There were no tender offers intended for enhancing management control or going private during the period.Proxy SolicitationsA total of 122 disclosures were filed for proxy solicitation during the first six months of the year. Of the total, 110 or 90.2% were for the purpose of meeting the quorum requirements in the general shareholders’ meetings. There were 12 filings for proxy contests during the period.* Please refer to the attached PDF for details.
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Aug 17, 2006

Asset Management Companies Operating Results Q1 FY2006

Preliminary operating results from a total of 48 asset management companies show pretax income for the first quarter of FY2006 ended June 30 will come to KRW92.54 billion, up sharply from KRW21.59 billion a year earlier. A KRW67.44 billion increase in investment management fees driven by a surge in assets under management mostly contributed to the jump in pretax income for the period. Net income for the period is expected to total KRW72.54 billion.Pretax income for domestic asset management companies (36) came to KRW72.03 billion, compared with KRW14.42 billion a year earlier. For foreign asset management companies (12), the total came to KRW20.51 billion, compared with KRW7.17 billion a year earlier.As of the end of June, assets under management totaled KRW221.6 trillion, up slightly from the previous quarter’s total of KRW221.3 trillion. Both stock funds and hybrid funds grew by KRW5.1 trillion and KRW3.7 trillion, respectively, but money market funds fell by KRW13.1 trillion during the period. Assets under management by domestic asset management companies came to KRW183.5 trillion. For foreign asset management companies, the total was KRW38.1 trillion.* Please refer to the attached PDF for details.
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May 04, 2006

Opening Ceremony held for FSS International Supervision Support Office

The Financial Supervisory Service held an opening ceremony on May 3 for the International Supervision Support Office. The ceremony was attended by Governor Yoon Jeung-Hyun and other senior FSS officers as well as government officials and CEOs of foreign financial institutions in Korea.
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Feb 16, 2006

Equity Disclosure Filings for Publicly Held Companies: 2005

Equity disclosure filings for publicly held companies for 2005 show a total of 2,409 investors held, together with related parties, five percent or more of the outstanding shares of 1,600 publicly held companies–689 Stock Market-listed and 911 KOSDAQ-listed companies–as of the end of the year. Eight tender offers and 133 proxy solicitations were made during the year, compared with 16 and 156, respectively, for 2004.Disclosures Related to the Five-Percent RuleDisclosures filed under the five-percent reporting rule totaled 10,216, up 2,988 or 41.3% from 7,229 a year earlier. The total figure for 2005 included 1,791 re-filings mandated under the amended reporting rule that took effect March 29, 2005.A breakdown of the filings by investment purpose shows investors who disclosed “Exercising Influence on the Management” numbered 1,591–in 1,553 companies, 657 Stock Market-listed, 896 KOSDAQ-listed–in 2005. Investors who disclosed “Investment Only” numbered 884–in 942 companies, 422 Stock Market-listed, 520 KOSDAQ-listed).Filings by Foreign InvestorsA total of 267 foreign investors–253 legal entities and 14 individuals–held five percent or more of equity interests in 450 publicly held companies, of which 218 were Stock Market-listed and 232 KOSDAQ-listed.Tender Offer FilingsEight tender offer filings were made in 2005: three for increasing the management’s control and five for going private. One of the eight tender offer filings was made by a foreign investor. In 2004, there were 16 tender offer filings, of which four were filed by foreign investors.Proxy SolicitationsA total of 133 disclosures were filed for proxy solicitation in 2005. Of the total, 114 or 85.7% were for meeting the quorum requirements in the general shareholders’ meeting, compared to 119 or 76.3% in 2004. The rest were for proxy contests* Please refer to the attached PDF for details.
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Dec 29, 2005

Amended Listing and Disclosure Rules by Korea Exchange for Non-Domestic Companies Approved

The Financial Supervisory Commission approved regulatory amendments proposed by the Korea Exchange to ease listing regulations for non-domestic (foreign) companies and apply more uniform disclosure standards for domestic and non-domestic companies. The following is a summary of the newly amended regulations.Primary Listing of Non-Domestic Companies(Effective December 26, 2005)Non-domestic companies not listed in an overseas stock exchange may apply for primary listing at the Korea Exchange. Prior to the amendment, only secondary listing was available to non-domestic companies. Under the principle of equal standards for domestic and non-domestic companies, essentially all the listing and delisting rules applicable to domestic companies are also applicable to non-domestic companies.Accounting Standards for Listed Non-Domestic CompaniesIn addition to Korean Accounting Standards, the U.S. GAAP and International Accounting Standards are allowed for non-domestic companies for financial reporting. In order to ensure the integrity and the reliability of financial information provided to investors, non-domestic companies are barred from arbitrarily changing the accounting standards they adopt for financial reporting after becoming listed at the Korea Exchange.Disclosure for Listed Non-Domestic Companies(Effective April 1, 2006)Non-domestic companies must in principle comply with the same periodic and prompt (ongoing) disclosures as those applicable to domestic companies. Disclosures must be filed in Korean. For full-length periodic disclosures filed for the home country, non-domestic companies may file the same report with a summary Korean translation.In recognition of difficulties non-domestic companies may face in continuously monitoring events at home and the need to alleviate compliance burden, the amended disclosure rules exempt listed non-domestic companies from full compliance with fair disclosure rules barring selective disclosure of significant information.The timin
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Oct 13, 2005

Amended Regulation on Indirect Investment Asset Management Business to Take Effect on October 7, 2005

The FSC/FSS amended Regulation on Indirect Investment Asset Management Business and the accompanying enforcement rules on September 30. The amended regulations, which take effect October 7, are intended to strengthen prudential oversight of asset management companies (AMCs) and ease restrictions on asset management activities. The following is a summary of the amended regulations.Prudential Oversight of AMCsAmended Investment Risk Weights on Net-Asset Basis(To take effect after six months from October 7, 2005)The risk weight for mark-to-market funds for the purpose of regulatory capital is to be differentiated according to the funds’ asset holdings in order to lower capital burden on AMCs with large funds. Prior to the amendment, 0.1% was uniformly applied as risk weight to all mark-to-market funds. Below is a table of amended new risk weights to be applied to mark-to-market funds on net-asset basis.The risk weight for book -value funds is to remain unchanged at the current uniform level of 0.2%. The same risk weight is to be applied to private equity funds managed by AMCs. For AMCs with outside directors and an audit committee in place, 10% of the risk amount determined is to be additionally deducted. In determining risk amount, borrowed funds for investment purposes are to be included in the net asset amount.Amended Management Status Evaluation(To take effect after six months from October 7, 2005)For assessment of capital adequacy of AMCs, the ratio of capital impaired is to be newly added to the quantitative capital assessment criteria so that undercapitalized AMCs do not receive a quantitative rating higher than the third (fair) grade. The effective capital adequacy ratio, which had varies little among AMCs, was eliminated from the quantitative capital assessment criteria.Prompt Corrective Action for AMCsWhere an AMC subject to prompt corrective action (PCA) satisfies the mandatory soundness standards with capital restoration or other necessary measures, the b
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Sep 06, 2005

Equity Disclosure Filings: First Half of 2005

An analysis of equity ownership disclosure filings during the first half of this year showed that a total of 2,413 investors held together with related parties 5% or more of the outstanding shares of 1,548 publicly-held companies—671 Stock Market (formerly KSE)-listed and 877 KOSDAQ-listed companies—as of the end of June. Five tender offers and 108 proxy solicitations were made during the period, compared with nine and 124, respectively, during the same period a year earlier.Disclosures Related to the 5% RuleThe number of disclosures filed under the 5% rule rose 2,038 or 55% to 5,718 from 3,680 a year earlier. Most of the increase resulted from investors re-filing disclosures as mandated under the amended 5% rule that took effect March 29 this year.A breakdown of the filings by investment purpose showed that, of the 2,413 investors who filed disclosures under the 5% rule, a total of 1,494 investors—1,417 domestic investors and 77 foreign investors—declared Exercising Influence on the Management as the intended investment purpose; the rest declared Investment Only as the intended investment purpose.Disclosures on Tender OffersA total of five tender offer-related disclosures were filed during the first half of the year. Of the five, four were intended for going private and the other as a defensive move against potential hostile takeover bids. All five were filed by local investors and companies. A year earlier, there were a total of nine tender offer filings, of which three were by foreign entities.Disclosures on Proxy SolicitationA total of 108 disclosures were made for proxy solicitations during the first half of the year. Of the total, 93 were for meeting the quorum requirements in the general shareholders’ meetings; the rest was for proxy contests. One of the proxy solicitation disclosures was filed by Crest Securities on behalf of Sovereign for SK Corporation’s general shareholders’ meeting.* Please refer to the attached PDF for details.
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Jul 22, 2005

Deutsche Bank Seoul Branch and BNP Paribas Seoul Branch Issued Severe Disciplinary Warning

The Financial Supervisory Commission announced on July 22 that the Seoul branch of Deutsche Bank and the Seoul branch of BNP Paribas would be issued a severe disciplinary warning for engaging in improper non-standardized OTC derivatives contracts with state-owned companies. The FSC also issued (1) suspension of duties for a period of one month for the head of the Seoul branch of Deutsche Bank, and(2) a censure for the head of the Seoul branch of BNP Paribas and recommended (3) dismissal for one employee and a reprimand for another of the Seoul branch of Deutsche Bank, (4) a three-month pay reduction for one employee of the Seoul branch of BNP Paribas, and (5) a three-month pay reduction for one employee and a reprimand for another of the Seoul branch of Barclays Bank for their involvement in the derivatives contracts. Each of the three banks cited by the FSC today will also be expected to submit a written agreement detailing specific steps to be taken to prevent improper derivatives business activities. In announcing the decision on foreign bank branches, the FSC noted that, because there was no precedent to the actions it took, regulators conducted extensive and thorough review of actions taken by foreign regulators in similar cases and the trading customs and practices in overseas derivatives markets as well as actions taken on domestic banks for poor internal controls and the customs and practices in the derivatives market at home.The actions the FSC announced today are based on the findings of examinations the Financial Supervisory Service conducted on four foreign bank branches—including the two Seoul branches of Deutsche Bank and BNP Paribas—following the general examination of the National Agricultural Cooperative Federation the FSS conducted in July 2004. The July 2004 examination of the NACF uncovered, among others, a large illicit payment scheme involving employees of the NACF and the Seoul branch of Deutsche Bank and intermediaries who helped to arran
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Jul 14, 2005

Draft Proposals on Reducing Regulatory Compliance Burden of Publicly-Held Companies Released

The FSC/FSS released on June 28 draft proposals put forth by Korea Securities Research Institute to reduce regulatory compliance burden faced by publicly -held companies. The draft proposals are the result of a joint effort between KSRI and a task force made up of experts and representatives from the FSC/FSS, Korea Exchange, Korea Listed Companies Association and KOSDAQ Listed Companies Association.Regulatory reform on accounting, disclosures and corporate governance for publicly-held companies has significantly boosted investor protection and market transparency in recent years. While these are clearly welcome and positive developments for the market, there has also been a growing recognition that the increasingly demanding rules and regulations are raising costs and compliance burden on publicly-held companies. In a recent survey of 201 listed companies, 25% of the respondents said that the benefits of staying as a publicly-held company were outweighed by the costs. Compliance with prompt disclosures and listing requirements, potential costs of class-action litigations, and high legal and regulatory standards for corporate governance were frequently cited by publicly-held companies as sources of concern.The draft proposals are intended to address these issues so that listed companies are not unduly restrained by regulatory compliance burden. The FSC/FSS expects to come up with more concrete measures from the draft proposals that can be implemented through supervisory regulations or by the self-regulatory organizations of Stock Market Division (formerly KSE) and KOSDAQ Market Division at the Korea Exchange by the end of the year after further deliberations and consultations (After the passage of the Sarbanes-Oxley Act in 2002, the S.E.C. of the U.S. also created an advisory committee in March this year to look into reducing listing burden on small companies going public for the first time).As summarized next, the draft proposals are divided along four general areas
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Jul 07, 2005

FSS Instructors Conduct Training on Financial Supervision at the Department of State Financial Inspection of Mongolia

Instructors from the Financial Supervisory Service conducted a week-long training on financial supervision at the Department of Sate Financial Inspection (DSFI) of Mongolia from June 27 to July 2. The FSS has been sharing its supervisory experiences and offering training on financial supervision to Asia’s emerging markets as a way to promote cooperation and foster close ties among the supervisory authorities in the region. The instruction had been planned since April at the invitation of the DSFI and covered insurance supervision and examination, insurance actuarial models and reserves, and supervision of non-bank financial institutions.Since the FSS invited DSFI staff for training on financial supervision in 2002, there have been three alternate training sessions between FSS and DSFI supervisors. Korea’s experiences with corporate and financial sector restructuring and financial supervisory policies were some of the topics discussed in these meetings. The FSS strongly supports training and staff exchange programs with foreign supervisory authorities and will continue to lend its support to the efforts of the supervisory authorities in Asia to improve financial supervision.* Please refer to the attached PDF for details.
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Jul 01, 2005

FSC/FSS Appoints Foreign Spokesperson to Improve Communication with the Foreign Business Community and Foreign News Media

The FSC/FSS appointed Douglas Kim a foreign spokesperson effective July 1 to help improve communication with the foreign business community and foreign news media. Douglas Kim has worked at the FSS International Cooperation Office since 2001. Prior to joining the FSS, he worked as an English editor at the International Tax Division, Ministry of Finance and Economy, as an economic research analyst at the Bureau of Economics, U.S. Federal Trade Commission, and as a statistician at the U.S. Patent Office in Washington, D.C. Mr. Kim received M.A. in Economics from Pennsylvania State University in May, 1992.* Please refer to the attached PDF for details.
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Jun 23, 2005

New Initiative to Improve Supervisory Work Processes for Foreign Financial Service Companies

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 OfficeThe 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 MA matters will continue to be handled by the appropriate supervisory department within the FSC/FSS. The Foreign Financial Company Support Team to be newl
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Jun 22, 2005

FSC/FSS to Launch Financial Statistics Information System for Foreign Investors in August

The FSC/FSS announced that Financial Statistics Information System (FISIS) would be available in English for foreign investors and other users through the FSS English website (http://english.fss.or.kr) in August. FISIS, a major upgrade from the monthly financial statistics in e-book format currently available in English, is an extensive, web-based database system capable of intuitive, user -friendly search on wide-ranging information and financial statistics from financial institutions. The English FISIS is identical to the Korean FISIS (http://fisis.fss.or.kr) except for a few modifications to the user interface and some of the contents to make it better suited and more relevant for foreign investors.FISIS is capable of generating wide-ranging information and financial statistics on financial institutions, including general profiles, summary income statements and balance sheets, and key business indicators such as profitability, liquidity, and productivity in charts and other user-tailored formats.The new system is expected to become fully operational and open to the public after test runs in July.* Please refer to the attached PDF for details.
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