|
|
|
|
|
Newsletter | November 2015, Issue 3
|
|
|
|
|
|
|
|
CORPORATE
|
|
|
|
Private Equity in Korea & Amendments to FSCMA – What You Need to Know
|
|
|
|
Proposed Amendments to the Enforcement Decrees
|
|
|
|
The National Assembly adopted certain amendments to the Financial Investment Services and Capital Markets Act (the “FSCMA” and such amendments, the “Amendments”) on July 6, 2015, and on October 25, 2015, the Amendments became effective.
|
|
|
|
The Amendments reflect most of the changes included in the Financial Services Commission’s (the “FSC”) December 2013 plans for revitalizing the M&A market, and for reforming the private equity fund-related (“PEF”) policies.
|
|
|
|
To reflect the changes in the Amendments, on July 23, 2015, the FSC announced certain amendments to the enforcement decrees of the FSCMA (the “Proposed Amendments to the Enforcement Decrees”).
|
|
|
|
Below are the key changes included in the Proposed Amendments to Enforcement Decrees:
|
|
|
|
|
Relevant Terms
|
Current Enforcement Decrees
|
Proposed Amendments to
Enforcement Decrees
|
|
Qualifications for Limited Partners of a PEF
|
|
Individual who will invest KRW 1 billion or more in such a PEF.
|
|
Entity which will invest KRW 2 billion or more in such a PEF.
|
|
|
Individual or entity which will invest KRW 300 million or more in such a PEF (where the individual is an officer or other management personnel of such a PEF, a minimal investment of KRW 100 million is required)
|
|
|
Investments through Business Transfer
|
Not permitted
|
Permitted
|
|
Participation in Special Purpose Company (“SPC”) by Strategic Investors
|
Not permitted
|
Permitted
|
|
|
|
|
Registered GPs Intending to Establish a PEF Post Oct. 25, 2015
|
|
|
|
In case an entity has already completed its registration as a GP in accordance with the FSCMA (prior to the effective date of the Amendments), and intends to establish a new PEF, such an entity should again complete the registration in accordance with the Amendments. Some of the tightened requirements for registering as a GP under the Amendments are:
|
|
|
|
| 1) |
Change in the requirement of the minimum number of “experts” that such a GP should have – from 1 to 2 “experts”;
|
| 2) |
Requirement to have “social credibility” - GP cannot have certain sanctions imposed against it.
|
|
|
|
|
Back to Main Page
|
|
|
|
|
|
If you have any questions regarding this article, please contact below:
|
|
|
|
|
|
|
|
For more information, please visit our website:
|
|
|
|
|
|
|
|