À̹ÌÁö È®´ë [Source: Financial Supervisory Service]
South Korean financial watchdog may ease the fines or penalty scope on brokerage houses for alleged irregular market-making practices which have been virtually stopped in the local bourses after the rare sanction was alerted.
Financial Supervisory Service (FSS) Governor Jeong Eun-bo during his meeting with representatives of brokerages on Tuesday said the government will ¡°respect self-correcting measures by securities companies after communications over the investigation results.¡±
The meeting was attended by Na Jae-cheol, chairman at Korea Financial Investment Association, Choi Hyun-man, vice chairman at Mirae Asset Securities, and Jung Il-moon, chief executive of Korea Investment & Securities.
Most of the 14 brokerages designated as market markers chose to surrender their role since September after nine were warned of a combined fine of 48 billion won ($41 million) for disturbing market order through unsuitable bids and offers.
Market-making brokerages act to stimulate a target stock¡¯s trade by making two-way quotes or indicating bid and offer price of the stock during trade hours on the exchanges.
He emphasized that the FSS will improve its around-the-clock, on-site audit system to help risk vulnerable sectors detect risks in advance and tackle them effectively.
Jeong also discussed with the heads how the FSS can help improve the country¡¯s retirement pension profitability by actively supporting financial firms in finding better solutions to improve profitability.
By Moon Ji-woong and Lee Eun-joo
[¨Ï Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]