Korea Herald – The government should allow the establishment of hedge funds in a bid to further develop the local financial industry, think tanks said yesterday.
The Korea Institute for International Economic Policy and the Korea Institute of Finance separately said state regulators need to lift a ban on the high-risk investment funds, which have been fast growing in the global market in recent years.
“Hedge funds are rapidly expanding as alternative investments amid low global interest rates,” Yeo Eun-jung, a research fellow with the KIF, told The Korea Herald.
“I think Korea should gradually open the market to global hedge funds.”
Hedge funds are private investment funds open to only a limited number of investors, which are not currently subject to any direct regulations – unlike mutual funds, pension funds, and insurance companies.
Hedge funds tend be considered high risk because they invest in financial derivatives and carry out leveraged trading.
