(1) Reasons for Proposal

The Act was amended to impose certain obligations on asset management companies authorized for incorporation and require authorization for authorized changes in facility plans or shareholder composition (December 22, 2020; to be enforced on July 23, 2021), and this Partial Amendment aims to define matters delegated by the Act, consign fact-finding to a professional organization when authorizing asset management companies by reflecting the amendment to the Act intended to strengthen soundness in asset management companies to protect investors, and improve and supplement some shortcomings observed in the operation of the current system.

(2) Major Provisions

A. Define matters to check when authorizing asset management companies (Article 22 paragraph 4 amended and attached Table 3 newly inserted)

Specifically and clearly define matters to check when authorizing asset management companies, such as business plans, major capital contributor requirements, and separation and delegate specific matters to sub-rules.

B. Facility requirements when authorizing asset management companies (Article 22 paragraph 8 newly inserted)

Define specific standards that asset management companies must meet to be authorized for incorporation, including electronic equipment, means of telecommunications, and other physical equipment.

C. Maintain business management soundness in asset management companies (Article 22-2 and 22-3 newly inserted)

Define specific standards and business management evaluation methods to maintain business management soundness in asset management companies and consign evaluation to the Korea Real Estate Board.

D. Authorize any change in asset management companies (Article 42-4 newly inserted)

Require asset management companies to obtain authorization for any material change such as major capital contributors, the scope of work, and physical equipment, which may affect the protection of investors among other authorized matters.

E. Define reporting obligations by asset management companies (Article 43 paragraph 4 newly inserted)

Specifically and clearly define the changes that asset management companies should report, such as articles of incorporation, trademarks, capital, and asset management professionals, other than matters whose change requires authorization.

F. Consign fact-finding when authorizing asset management companies (Article 47-6 paragraph 1 amended)

Consign fact-finding to the Korea Real Estate Board, which is also consigned for evaluation of the business management of post-authorization asset management companies, for authorization.