헤지펀드 도입논의와 자본시장법의 과제

On May 2008, the Korean government decided to allow hedge funds to operate in Korea under gradual market opening measures as a way to raise the level of the domestic financial market and improve financial risk regulations to provide wider investment opportunities. This paper will analyze foreign hedge funds assuming that they will be allowed to operate in Korea and take into account both sides of the argument regarding their entry in Korea. A proposal on the level of financial oversight and financial market liberalization measures in Korea will be presented. Thus, hedge funds provide market liquidity for financial markets and investors along with investment opportunities that potentially have higher returns in addition to reducing the price imbalances in financial derivatives through margin trades in financial markets that will lead to diverse and precise development of investment techniques, aiding the development of financial markets as one of its pure functions and thereby, the entry of hedge funds in Korea will improve risk management and asset management, nurture financial professionals and promote the further enhancement of the financial environment. This author deems it necessary to halt the entry of hedge funds in the domestic market if there is no financial oversight implemented on funds in the current financial system that exists in Korea and therefore if hedge funds are allowed to enter Korea, limitations must be set upon hedge funds and the fund managers themselves must meet certain qualifications if they want to market their fund to professional investors. The regulatory agency in Korea must continue to exercise oversight on hedge funds and introduce measures to protect investors.