Korea

Posted By Steve On Friday, October 16th, 2009 With 0 Comments

The Ministry of Finance and Economy (MOFE): controls and directs the Korean securities markets through the formation and implementation of economic and financial development policies. On February 25, 1998, the monetary functions of the MoFE were transferred to the Bank of Korea, while its supervisory functions were transferred to the FSC.

The Financial Supervisory Commission (FSC): responsible for the enactment, implementation and amendment of financial supervisory rules, along with the inspection and examination of financial institutions. Above all, it is responsible for the supervision and surveillance of financial markets, including the securities and futures markets, which is accomplished through the Financial Supervisory Service (FSS) and the Securities and Futures Commission (SFC).

The Financial Supervisory Service (FSS): the FSC’s executive arm, was established in January 1999 as a consolidated supervisory body of four pre-existing supervisors. The main objectives of the FSS are to ensure sound and fair practice in the financial markets and to protect depositors and
investors. It divides its responsibilities between regulatory and inspection functions. The FSS is a special legal entity with no capital basis.

The Securities and Futures Commission (SFC): is also a special legal entity within the FSC, which oversees the securities and futures market by implementing duties described under the Act for the Establishment of Financial Supervisory Organisations and the Securities and Exchange Act. Investigates unfair trading, insider trading and market manipulation. Manages
accounting standards and audit review related matters.

The Korea Securities Dealers Association (KSDA): A non-profit special legal
entity, became a self-regulatory membership organization in 1997 under the revised Securities and Exchange Act. It is responsible for maintaining fair trading practices among members and protecting investors. The KSDA also manages the KOSDAQ and OTC bond markets and regulatory supervision of securities professionals.

The Korea Exchange (KRX): The KRX, launched as a market operator and self-regulatory organization on January 19, 2005, is responsible for the consolidated operation of the Stock Market, KOSDAQ Market, and Futures Market. The KRX is a demutalized and consolidated exchange, in which the general meeting of shareholders is the highest decision-making body.

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