On 9 November 2022, SK FSC finalized Regulations on financial investment business.

• Cover revisions regarding foreign corporate shareholders of credit rating agencies too.
• Follows SK FSC August 2022 propose revisions re foreign shareholders.
• Revised Regulations are effective from the same day, but with transition measures.

Background:

• Consultation paper issued in September proposing rules to reinforce short selling detection.
• In November 2022, FSS proposed rules on foreign firms, short selling reports.
• Involve lowering required collateral ratio for individual investors too, to 120% from 140%; clarifying need to include detailed lending info in short selling balance report.
• A new requirement to report to SK FSS governor after 90 days, following conclusion of a lending contract associated with listed securities for the purpose of short selling.