THE INVESTOR

메뉴열기
July 20, 2019

Korea to ease rules for brokerages

PUBLISHED : June 25, 2019 - 15:12

UPDATED : June 25, 2019 - 15:12

  • 본문폰트 작게
  • 본문폰트 크게
  • 페이스북
  • 트위터
  • sms


South Korea’s financial regulator said on June 25 it will ease rules for brokerage houses, in a move that could help the sector channel more funds into industrial sectors.

Under the deregulatory move, a family-run business conglomerate, or chaebol, can have two brokerages under its wing, according to the Financial Services Commission. 


Currently, a chaebol is allowed to have only one brokerage unit under its wing.

The FSC said it will also eliminate barriers for new players to set up brokerages.

When brokerages want to expand their businesses, they are required to get approval from the FSC, but the deregulatory move will allow brokerages to expand businesses by notifying the FSC of them.

At the end of last month, the number of brokerages in Korea stood at 56. Only six new brokerages have been set up since 2010.

Hwang Sae-woon, a researcher at the Korea Capital Market Institute, said the move is expected to bring a significant change in the brokerage industry.

“If entry barriers to brokerages are lowered, more new players will make inroads into the sector, and it will give the industry a competitive edge,” Hwang said.

By Ram Garikipati and newswires (ram@heraldcorp.com)

  • 페이스북
  • 트위터
  • sms
최상단으로
Herald Corporation|CEO : Kwon Chung Won
Publisher. Editor : Kwon Chung Won
Chief Privacy Officer & Juvenile Protection Manager : Yang Sung-jin
Title : The Investor|Date of registration : 2015.04.28
Company Registration No. 104-81-06004
Mail-Order Business Registration 2016 - Seoul Yongsan - 00590
Huam-ro 4-gil 10, Yongsan-gu, Seoul, Korea
T : +82-2-727-0114|Business info
Gov’t registration No. Seoul 아04099
COPYRIGHT HERALD CORPORATION. ALL RIGHTS RESERVED.