Korea Times- A senior finance ministry official said Tuesday that the government will allow the establishment of hedge funds in 2009 to help upgrade the country’s financial industry and boost its growth potential. It had initially planned to phase out regulations on private equity funds (PEFs) toward full admission of hedge funds in the domestic financial market by 2012.
Deputy Finance and Economy Minister Cho Won-dong said hedge funds will be set up in the country after local PEFs are allowed to establish subsidiaries abroad next year and invest in the overseas corporate and financial debt restructuring markets.
“We will draw up and unveil a roadmap concerning the establishment and operation of hedge funds here before the year’s end after hearing opinions from diverse sectors,” he said in a keynote speech at a public hearing Tuesday organized by the Korea Securities Research Institute.
