Significant Reduction in Backlog After Establishment of Fund Rapid Review Office... 80% Decrease in Unprocessed General Private Equity Funds

Financial Supervisory Service, Yeouido, Seoul. Photo by Jinhyung Kang aymsdream@

The Financial Supervisory Service (FSS) announced on the 26th that since the establishment of the Fund Rapid Review Office, the backlog of reviews has been significantly reduced and processing times have been shortened.

According to the FSS, for general private equity funds, the number of unprocessed reports, which stood at 11,730 at the end of last year, was reduced by 79.0% to 2,458 by the end of August this year. For foreign funds, the number of pending registration reviews, which was 218 at the end of last year, decreased by 91.7% to 18 by the end of August this year.

Additionally, by assigning dedicated personnel (4 people), the registration period for foreign funds, which typically took around 4 to 5 months, was shortened to within 2 to 3 months to promote rapid processing.

Furthermore, the FSS emphasized that for general private equity funds, they directly visited asset management companies with high report submission demands to verify reporting items and accept reports in bulk. At the same time, they immediately communicated major reporting error cases and precautions on-site to prevent delays caused by future report corrections. The work processing method was also changed from a case-by-case basis according to the order of receipt to a batch processing method by company and type to improve efficiency.

They also strengthened communication with market participants and actively listened to on-site opinions to continuously seek areas for work improvement.

The FSS has also enhanced infrastructure to sustain rapid and efficient review operations. To resolve inefficiencies caused by the absence of a computerized system for foreign funds, they established and operated a foreign fund registration and management system, enabling the entire registration process to be handled through the computerized system.

For general private equity funds, reporting forms related to establishment and setup were revised to standardize and simplify key reporting items, and improvements to the general private equity fund report submission system are underway, targeting operation in the fourth quarter of this year.

An FSS official stated, "We will focus our work capabilities to promptly process the remaining backlog and manage fund review cases below an appropriate level through continuous work process improvements to prevent recurrence of review backlogs and processing delays. We will also ensure the stabilization of the newly introduced foreign fund registration and management system and the on-schedule operation of the general private equity fund report submission system within this year."

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