South Korea cracks down on noncompliant private equity fund firms

Authorities first introduced the cancellation scheme in October 2021.

South Korean financial authorities revealed that they have canceled the registration of 10 general private equity fund businesses since 2021.

A business entity that has been cancelled is prohibited from engaging in the financial investment business.

First introduced in October 2021, financial authorities introduced an ex officio cancellation scheme as a result of the supposed number of businesses who had to suspend businesses due to poor performance or failed to satisfy requirements for maintaining registration.

The Financial Services Commission further reminded consumers to check first whether the entity they plan to make a transaction with is registered with it. 

“The Financial Supervisory Service will strive to eliminate unqualified entities promptly to create a dynamic market environment where qualified companies can be recognized and prosper,” the FSS said in a statement published on its website.