Yoon Seok-heon, "Need to Restrict Private Equity Fund Investment Eligibility to Professional Investors"

Yoon Seok-heon, Governor of the Financial Supervisory Service

[Asia Economy Reporter Koo Eun-mo] Yoon Seok-heon, Governor of the Financial Supervisory Service, pointed out that it may be necessary to consider restricting investment qualifications in the private equity fund market to professional investors.

At the year-end online press conference held on the 23rd, Governor Yoon said, "Although the market size has grown due to continuous deregulation, I am somewhat concerned whether the remarkable growth has been accompanied by substantial development," and added that it is necessary to observe how the institutional improvement measures prepared with the Financial Services Commission will affect the market going forward.

Regarding the private equity fund institutional improvement measures, Governor Yoon noted, "There is an opinion that investment qualifications should be restricted to professional investors, as in some overseas countries," and said, "Since this is an area invested in by experts, it is not appropriate for general investors to participate."

He also stated, "Some may raise concerns about whether it is appropriate for banks to sell private equity funds to general investors," and mentioned that if the institutional improvement measures do not function properly, it is necessary to discuss additional supplementary measures.

He pointed out that improvements are needed not only for investors and sellers but also for asset management companies. Governor Yoon said, "Some may question whether private equity fund specialized asset management companies possess the expertise and qualifications," and added, "We are also considering internal control conditions, expertise qualification requirements, and internal control requirements."

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