Excerpt from Korea FSC 2012 Financial Policy Agenda
As Europe’s ongoing debt crisis is expected to threaten global economic growth and increase volatility in global financial markets next year, Korea is also likely to face an economic slowdown, which will deal a severe blow particularly to SMEs and low-income households.
Under such circumstances, the FSC set three main financial policy goals with six key objectives for 2012 as follows:
Korea’s advanced financial system
Reform capital market system
* The FSC will help home-grown IBs and hedge funds become firmly established in Korea’s capital markets.
* We will ensure capital markets infrastructure such as ATS and CCP can be introduced as scheduled. The current evaluation system of corporate credit ratings will be revised to meet advanced standards.
* The FSC will promote sound development of Korea’s derivatives markets by raising initial deposit ratio and strengthening protection for investors in ELS market.
* Pension funds will be encouraged to play a bigger role as a safeguard in financial markets through their investment.
* While promoting activities of home-grown IBs, the FSC will also support activities of “small-but-strong” securities firms in specialized niche markets.
* We will also be more flexible in granting licenses for asset management businesses
* Regulations on trust businesses will be revised in line with the newly revised Trust Business Act scheduled to be enforced on July 26, 2012.
Promote electronic financial services
* The Electronic Securities Act will be enacted to reduce costs in issuing and trading securities and improve transparency in transactions.
Promote further globalization of Korea’s financial industry
* The FSC will strengthen international cooperation in financial supervision by signing MOUs with overseas financial authorities and more effectively support Korea’s financial companies to expand into overseas markets.
* We will hold IR events to publicly promote financial centers in Seoul and Busan and attract more global financial companies.