South Korea
Legislative and Regulatory Amendments
- Financial Services Commission (FSC)
Insider Transactions of Listed Companies Subject to the Prior Disclosure Requirement from July 24
The Financial Services Commission announced that regulatory changes, which require insider transactions of listed companies to be disclosed 30 days prior to their planned transaction dates, have been approved by the government at a cabinet meeting held on July 9. The revision proposal for the Enforcement Decree of the Financial Investment Services and Capital Markets Act (FSCMA) and its subordinate regulations will go into effect from July 24.
Date of Release: 9 July 2024
Implementation on: 24 July 2024
Applicable to: Financial Institutions
The Act on the Protection of Virtual Asset Users to Take Effect from July 19
The Financial Services Commission announced that the Act on the Protection of Virtual Asset Users, which intends to establish a sound order in the virtual asset market and ensure protection for users, will take effect from July 19.
Date of Release: 17 July 2024
Implementation on: 19 July 2024
Applicable to: VA investors
FSC Introduces Roadmap to Make Improvements to Network Separation in Financial Industry
On 13 August 2024, The Financial Services Commission (FSC) introduced a roadmap to make improvements to network separation in financial industry. First, financial companies will be allowed to make use of generative AI technologies. Second, financial companies will be allowed to make use of the cloud-based software as a service (SaaS) for more types of operational functions. Third, improvements will be made on financial companies’ research and development environments.
Date of Release: 13 August 2024
Implementation on: 13 August 2024
Applicable to: Financial Institutions, financial industry professionals, regulatory bodies, cybersecurity experts.
Revised Rules on Electronic Financial Transactions to Take Effect from September 15
The Financial Services Commission announced that the government approved a revision bill for the Enforcement Decree of the Electronic Financial Transactions Act at the cabinet meeting held on September 3. Together with the previously amended Act on Electronic Financial Transactions (approved on September 14, 2023), the revised rules will help to close the regulatory loophole on electronic prepayment means and strengthen protection for advance payments made for electronic prepayment means. The revised rules on electronic financial transactions are scheduled to take effect from September 15.
Date of Release: 03 September 2024
Implementation on: 15 September 2024
Applicable to: Financial Institutions
The Financial Services Commission announced a set of measures intended to improve regulations on electronic payment settlement agency services (payment gateway or PG services) on September 9. The proposed measures are aimed at preventing the recurrence of payment delays involving PG services recently seen in the large-scale e-commerce payment failures. The measures have been prepared after coordinating with related government ministries and collecting opinions from experts.
Date of Release: 09 September 2024
Implementation on: 09 September 2024
Applicable to: Financial Institutions
The Financial Services Commission announced that a revision bill for the Enforcement Decree of the Microfinance Support Act was approved by the government at the cabinet meeting held on September 24.
Date of Release: 24 September 2024
Implementation on: 24 September 2024
Applicable to: Financial Institutions
Revisions to FSCMA Expected to Bring About Major Improvements to Short Sale Regulations
The Financial Services Commission announced the passing of a revision bill for the Financial Investment Services and Capital Markets Act aimed at enhancing short sale regulations, including the requirement for institutional investors to establish electronic processing systems and stronger penalties for unfair trading activities. These measures are part of efforts to prevent naked short sale activities and ensure market integrity, with the revised law set to go into effect on March 31, 2025.
Date of Release: 26 September 2024
Implementation on: 31 March 2025
Applicable to: Financial Market participants
Consultations
No consultations for South Korea in Q3
This document is provided for information purposes only and does not constitute legal, tax, investment, regulatory, accounting or other professional advice. For more information on the legal and regulatory status of IQ-EQ companies please visit www.iqeq.com/legal-and-compliance.