A Study on Current Liability Regulations ofKorean Credit Rating AgenciesThrough Comparison with U.S. Regulations

By experiencing credit risks and financial scandals several times since 10 years ago, presently, the ideas that credit ratings control the overall financial areas and the agencies are one of the culprits that have made worse to the Korean economy have spread in Korea. Congress has recognized the significance of the liability system amending Use and Protection of Credit Information Act this year. Unfortunately, Korean credit rating industry is under this condition following. (1) Because of the past credit risks, people suspect an accuracy of credit rating results, (2) despite this fact, there is little efforts of the legislation, (3) the research of the liability of the Korean credit rating industry has hardly examined in academic circles, and there are no cases with related to the matters in a court yet. For the development of Korean securities market and the independent financial industry, to reform liability system of the industry is very urgent. To develop the liability of the Korean credit rating agencies, this study scrutinizes (1) the status and the past performances of Korean credit rating agencies, (2) the current liability system and the recent reform Acts of the U.S. and (3) the applicable liability theories, such as professional responsibility, default of the obligation and tort liability for the future cases related to the credit rating agencies. By discussing all considerations above, (5) this study proposes proper suggestions for the improving self‐development liability of the Korean credit rating agency industry in the situation where U.S. credit rating agencies possess enormous powers to Korea.