(1) Reasons for Proposal

As the Act has been amended to require change authorization for changing any authorized information in asset management companies authorized for establishment such as physical facilities and shareholder composition (amended on December 22, 2020; to be enforced on June 23, 2021), this Amendment aims to define matters delegated from the Act and its Enforcement Decree such as specific standards, procedures, and forms and improve and supplement some shortcomings observed in the operation of the current system such as things to confirm when authorizing asset management companies.

(2) Major Provisions

A. Update some provisions that may potentially conflict with laws regarding cross-ownership authorization for asset management companies, while replacing vaguely defined “discipline” with a generally applicable term “penalty” and specifying detailed standards (Article 20 paragraph 6 amended).

B. With the introduction of a change authorization system for asset management companies, define specific standards, forms, etc. required for change authorization (Article 20-2 newly inserted).

C. Specify and explicitly state the applicability of capital contributor requirements when authorizing asset management companies (attached Table 3 amended).

D. Specify physical equipment requirements such as electronic equipment when authorizing asset management companies (attached Table 4 newly inserted).