Capital Markets and Financial Investment Services Act of 2007: An Overview

Abstract

On March 2006, the then Ministry of Finance and Economy of Korea (MOFE), now the Financial Services Commission, announced its intention to consolidate existing capital market-related laws into a single statute. The reform, said the MOFE, is to enhance the quality of capital markets and to promote the development of financial investment services in Korea. Korea was traditionally considered to be a bank-based system rather than a marketbased system. One of the main purposes of the reform was said to make our capital circulation system more multiple. The Capital Markets and Financial Investment Services Act 2007 (hereinafter the CMFISA), which passed the National Assembly on 13 June 2007, came into effect on February 4th, 2009.