Source: Xinhua
03-05-2009 17:44
Special Report: Global Financial CrisisSEOUL, March 5 (Xinhua) -- South Korea's financial service firms did not gain much from the new financial law, which was adopted in a bid to help local financial firms expand businesses, amid the deepening financial crisis, South Korea's Korea Herald reported Thursday.
The Financial Investment Services and Capital Market Act, since it came into effect on Feb. 4, has helped only two financial service firms, Hanmag Securities Corporation and Hyundai Investment, launch new businesses, according to the nation's financial watchdog.
Hanmag Securities has stepped into brokerage and securities services, while Hyundai Investment has decided to deal with comprehensive investment management services.
Although a few more companies are known to be warming up for the futures industry, the effect of the law has proved to be far weaker than its original purpose.
"The market doesn't seem to have been quickly responding to the law as overall investment sentiment has stayed sluggish for a long while," a source at Eugene Investment & Securities told the Korea Herald.
The financial watchdog is to investigate the companies planning to expand businesses, but says that it still is not a good time for financial services firms to expand due to the current market conditions.
The watchdog will finalize guidelines for companies who which to launch new businesses.
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Editor:Qin Yongjing
