Posts Tagged ‘Korea’
Shaw Funds Management Headlines: Recent Developments in Creating Monetary Holding Businesses in Korea
By Kyung-Yoon Lee and Pil-Kook Lee
Date: January 2008
Under the Financial Holding Business Act (the FHCA), a economic holding business (FHC) is defined as a organization which, through ownership, “controls” a firm that engages in “financial business” and fifty% or a lot more of the total assets of which is comprised of shares of managed subsidiary businesses. The “financial business” underneath the FHCA is people “financial and insurance businesses” as prescribed in the Korea Regular Business Classification and the scope thereof is very wide, which includes banking, securities, insurance, credit card, fiscal lease, lending, installment financing, futures brokerage, fiscal advisory, investment have confidence in, believe in company and securities custody.
Foreigners permitted to establish a financial keeping firm
In principle, underneath the FHCA, financial establishments (irrespective of domestic or foreign) are prohibited from obtaining a “controlling relationship” with the FHC with particular exceptions. Beneath the presidential decree of the FHCA, only foreign fiscal establishments which engage in banking, securities or insurance policy enterprise and fulfill certain eligibility specifications are qualified to become major shareholders of the FHC.
In April 2007 the FHCA was amended to permit foreign economic institutions to set up economic keeping organizations in Korea and in November 2007, the presidential decree which sets forth the comprehensive criteria for foreign financial institutions’ eligibility to grow to be the main shareholder of the FHC was accordingly amended. Under the FHCA presidential decree, the Fiscal Supervisory Commission would acknowledge a foreign monetary institution as staying eligible to manage a financial keeping company if, amongst other points, the foreign fiscal institution holds 100% of the shares of the holding business.
By Kim Jae-kyoung
Green Finance: Long run of Korean Economic system
This is the first in a six-aspect collection of posts on the nation’s vision to turn out to be a green financial power in the global neighborhood and the current developments of “green finance” in Korea to support the vision. ? Ed.
The worldwide financial crisis triggered by the U.S. subprime house loan meltdown is steering the global economy in a new direction, forcing many countries about the earth to comply with a new expansion paradigm, “green growth.”
For sustainable progress, governments in significant countries have arrive up with green initiatives to get the higher hand in the new place, which they believe will figure out the potential of their economies.
In line with the global pattern, South Korea has also unveiled its ambitious vision to become a green economic energy by shifting its expansion paradigm to an environment-friendly and vitality effective one.
President Lee Myung-bak said the government will promote “low carbon and green growth” as the nation’s new vision, abandoning its 60-yr lengthy production-based and export-oriented technique.
“Green growth is a new national development paradigm that nurtures new engines and generates careers with green technological innovation and clean energy,” he added.
In July, the Presidential Council on Green Progress launched a five-12 months prepare in its briefing to President Lee at Cheong Wa Dae.
Shaw Money Administration Headlines : South Korea: Substantial Curiosity Charged by Finance Organizations Probed
Resource : THE DONG-A ILBO
Seul, South Korea, July, 24 2010 – An investigation into finance organizations commenced Friday after President Lee Myung-bak complained a day previously that the businesses are charging large interest costs even though visiting a branch of a micro-finance foundation.
After a meeting with chief directors of micro-finance foundations at the Bankers Club in Seoul Friday, Economic Solutions Commission Chairman Chin Dong-soo instructed reporters that a probe will commence into finance organizations imposing substantial interest rates on loans to folks and devise countermeasures.
“A thirty-% curiosity fee is extremely higher,” he stated. “Through an in-depth investigation, we will devise measures to ease the burden on the operating class.”
“The principal functions of finance businesses are leasing, installment funding and providing automobile loans, but unsecured loans account for a important share of their operations,” he additional. “This means demand for livelihood funds and emergency loans is large in the industry, but curiosity charges in the thirty-percent stage is extreme.”
The marketing and advertising share of unsecured loans amid finance businesses is close to five % and the amount of extended loans is about three trillion won (2.5 billion U.S. bucks). The interest price on loans for men and women at these kinds of companies is an yearly regular of 32.six % and the default fee is around the legal limit of 44 %.