Financial Supervisory Commissioner Yoon Seok-heon “Review of the regular conversion of the private equity-only inspection organization”

Financial Supervisory Commissioner Yoon Seok-heon announced that he will convert a temporary inspection organization to a regular organization to solve the private equity issue. It played an important role in national wealth management, and it was judged that it was limited to operate as a temporary organization until 2023.

Director Yoon said at the year-end conference held online on the 23rd, “The private equity total investigation will be operated as a temporary organization for the time being, but we are considering converting it to a regular organization.”

He added, “The specific organization type or number of people has not been determined, but as it occupies an important part in the national property management sector, it is judged to be meaningful enough (regular organization of the inspection organization).”

Earlier, the financial authorities decided to set up a dedicated inspection organization for a limited time to solve the problem of private equity funds, such as the suspension of redemption of Lime and Optimus Asset Management, to conduct full inspection of 233 private equity management companies for three years.

Director Yoon said, “We have conducted inspections on 18 specialized private equity management companies so far, and we are targeting 20 by the end of the year.” It is not accompanied by large-scale investor damage such as,” he said.

Regarding the full inspection of private equity funds, approximately 50% of the 9043 private equity funds have been inspected. The vendor led the cross-verification of data from managers, trustees, and office management companies, and there are no specific issues reported so far. The in-house inspection is planned to be completed by the first quarter of next year.

He replied that he was in the “finishing stage” regarding the progress of legal review for the dispute settlement of Optimus Fund.

Director Yoon said, “We will come to a conclusion after reviewing the law and confirming the facts as soon as possible.” Whether or not it matters,” he explained.

He added, “If there is an agreement between the seller and the investor, we plan to open a dispute settlement and make a recommendation based on that standard.”

In addition, he said, “The biggest problem with the improvement of the short selling system is the appearance of asymmetric information or the’tilted playground’ phenomenon,” he said. “It is necessary to admit that solving such problems is not easy.”

Director Yoon said, “Recently, amendments to the Capital Markets Act, including strengthening the level of punishment for illegal short selling, have passed the National Assembly plenary session.” I said.