Korea Capital Market Institute

Program

Recently, the financial industry has been going through paradigm shift from loans and ancillary support the real economy to investments, and from savings to mid-risk, mid-return products. This trend is expected to be more evident as innovation and convergence gain strength under the low growth. And this will fuel discussions about the mechanism to supply risk capital. Private equity is the most common method of supplying risk capital that reduces information asymmetry. Real estate funds, resource development funds, SOC funds, venture funds, buyout funds, and hedge funds are all regarded as private equity.

Despite the importance of private equity, Korea’s private equity fund regulation lags behind. Although private equity funds have a private contract feature in nature, Korea’s regulation treat them as one of publicly offered funds and thus excessively regulate them. 

Sponsored by the Financial Services Commission, Korea Capital Market Institute will hold a public hearing titled “Private Equity Fund Reform for Economic Revitalization”. Active discussions are expected to seek ways for private equity funds to recover its creativity and dynamism without compromising financial stability and Korea’s fair trade policy. We look forward to having in-depth exchange of views and active participation.