Financial Supervisory Service Expels 10 Unqualified Private Equity Funds and Discretionary Asset Managers

Failure to Meet Minimum Capital Requirements and Non-Performance of Registration Duties

Financial Supervisory Service, Yeouido, Seoul. Photo by Younghan Heo younghan@

On the 29th, the Financial Supervisory Service announced that it had canceled the registrations of a total of 10 companies after checking whether they met the criteria for involuntary deregistration due to insolvency or disqualification, such as failure to meet the minimum capital requirements.

The financial investment companies that have been involuntarily deregistered so far are ▲Day One Asset Management ▲Hub Holdings ▲Core Value Investment ▲Tiger & Lee Investment Advisory ▲Kiwi Investment ▲Maru Fund Investment Advisory ▲Cheonggaeguri Investment Advisory ▲WR ▲Meta Investment Advisory ▲AJ Safety.

The involuntary deregistration system was introduced in October 2021 to support the swift exit of insolvent financial investment companies following the deregulation of private fund operators. It applies to private fund operators, investment advisory firms, and discretionary investment management companies.

Under the Capital Markets Act, companies subject to involuntary deregistration can be removed without inspection procedures. The grounds for deregistration include ▲failure to meet minimum capital requirements ▲non-operation of registered business ▲failure to meet professional personnel requirements ▲non-submission of business reports ▲cancellation of business registration ▲declaration of bankruptcy, etc.

When a financial investment company is involuntarily deregistered, major shareholders and executives are restricted from re-entering as major shareholders in the same financial investment business for five years.

Financial consumers should verify whether the company is registered with the Financial Services Commission before subscribing to funds or entering into investment advisory or discretionary contracts.

The Financial Supervisory Service stated, "We will continue to strive to create a dynamic market environment where competent companies are recognized and can continue to grow by promptly removing insolvent financial investment companies that fail to meet registration maintenance requirements such as minimum capital."

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