How offshore funds are marketed in Korea

SUPPLEMENT - THE 2006 GUIDE TO FUND MANAGEMENT - April 01, 2006

Kim & Chang

Address

1st Floor, Seyang Building 223 Naeja-dong, Jongno-gu Seoul 110-720 Korea

Telephone

+822 3703 1114

Fax

+822 737 9091~3 Visit Website

The marketing and sale of offshore fund products in Korea is governed by the Indirect Investment Asset Management Business Act (the AMBA) and its regulations. Under the regulations, a foreign management company is permitted to sell shares or beneficial certificates in the offshore fund to Korean investors, subject to certain restrictions and registration requirements. As no separate regulatory requirements or rules specifically apply to offshore hedge funds, the general rules for onshore funds under the AMBA apply. As a general matter, the types of funds covered under the AMBA are company and contractual funds, in addition to other indirect investment vehicles.

Regulatory regime For sale of an offshore fund to Korean investors, an advance registration report on domestic sale must be filed with, and accepted by, the Financial Supervisory Commission (FSC) in accordance with the procedures set out in the applicable laws and regulations (unless the offer and sale is limited...



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