The Financial Supervisory Service has begun an on-site inspection of Kiwoom Securities and Hana Securities over their overseas investment business practices. The move comes as the scale of individual investors' overseas investments is rising quickly, aiming to strengthen investor protection and risk management.
According to financial authorities and the industry on Jan. 8, the Financial Supervisory Service (FSS) conducted on-site inspections that day of Kiwoom Securities and Hana Securities. The FSS plans to broadly review marketing, margin lending, the risk management framework for foreign exchange risk, currency exchange fees, and disclosure standards.
It will also look at how securities firms operate their integrated margin systems. Recently, financial authorities noted that, in a high exchange-rate environment, overseas stock currency exchanges bunching at 9 a.m. could distort exchange rates.
Earlier, the Financial Supervisory Service (FSS) inspected Korea Investment & Securities and NH Investment & Securities for two days starting on the 3rd. The FSS plans to continue staggered inspections through January next year of major securities firms and asset managers with high exposure to overseas investments.