ID :
188989
Thu, 06/16/2011 - 11:21
Auther :
Shortlink :
https://oananews.org//node/188989
The shortlink copeid
S. Korea finalizes details about introduction of hedge funds
SEOUL (Yonhap) - South Korea's financial watchdog said Thursday it has finalized details about qualifications to manage hedge funds, which the government is seeking to introduce this year.
A hedge fund is privately pooled money used by investors who seek massive investment returns through risky bets using a wide range of investment techniques, including short selling and leveraged buyouts. Currently, South Koreans are only allowed to invest in hedge funds that are established in foreign countries.
South Korea is pushing to introduce hedge funds as they could meet a variety of investment demands by placing bets on a range of derivative products.
The Financial Services Commission (FSC) said that retail investors should put at least 500 million won (US$458,700) into hedge funds if they are qualified. That sum was lower than the 1 billion won initially discussed.
The FSC said to manage hedge funds, qualified asset managers, securities firms and investment advisory companies should have at least 6 billion won in equity capital.
The introduction of hedge funds has sparked controversy in South Korea as opponents say that excessively risky bets by investors were to blame for the global financial crisis. But the government argues that it will also beef up supervision over hedge funds if they are introduced.
A hedge fund is privately pooled money used by investors who seek massive investment returns through risky bets using a wide range of investment techniques, including short selling and leveraged buyouts. Currently, South Koreans are only allowed to invest in hedge funds that are established in foreign countries.
South Korea is pushing to introduce hedge funds as they could meet a variety of investment demands by placing bets on a range of derivative products.
The Financial Services Commission (FSC) said that retail investors should put at least 500 million won (US$458,700) into hedge funds if they are qualified. That sum was lower than the 1 billion won initially discussed.
The FSC said to manage hedge funds, qualified asset managers, securities firms and investment advisory companies should have at least 6 billion won in equity capital.
The introduction of hedge funds has sparked controversy in South Korea as opponents say that excessively risky bets by investors were to blame for the global financial crisis. But the government argues that it will also beef up supervision over hedge funds if they are introduced.
