A. Improvement of Regulation on operation of FoF (Fund of Fund) as bond ETF

FoF is allowed to include bond ETF, which satisfies the condition, equivalent up to 100% of fund property.

B. Special case of period to relieve violation of asset management limit (Article 4-54-2)

In case of the fund to receive carried interest or the fund to make an investment equivalent to 1% or more of collective investment equity capital (KRW 400 million in minimum and KRW 1 billion in maximum), the relief period is changed from three (3) months to six (6) months in case of unavoidable violation of asset operation limit

C. Improvement of limit to include market representative index fund in affiliate securities (Article 4-57)

In case of market representative index fund, inclusion is allowed up to the share of affiliate securities in corresponding index.

D. Adoption of performance-linked operation fee type (Article 4-65)

Details of newly allowed performance-linked operation fee in carried interest type that operation performance is asymmetrically reflected are determined.

E. Relief of owl disclosure of small scale fund (Article 4-67-2)

In case of the fund to receive carried interest or the fund to make an investment equivalent to 1% or more of collective investment equity capital (KRW 400 million in minimum and KRW 1 billion in maximum), relief is made so that inclusion in small scale fund is owl disclosed from two (2) years since setup of the fund.

F. Legislation of administrative guide of asset operation companies for self-offering fund investment (Article 7-1-2)

Liability for own property investment is reflected in acts and subordinate statutes in case that asset operation companies being operated by administrative guide set offering fund.

G. Model rule on activation of small scale fund arrangement and suppression of generation of small scale fund is legislated (Article 7-1-3, Article 7-4, and Article 7-8).

Model rule on activation of small scale fund arrangement and suppression of generation of small scale fund is reflected in acts and subordinate statutes so that, if the ratio of small scale fund exceeds 5%, new offering fund cannot be registered by administrative guide.

H. Exemption from resolution of Beneficiaries' Meeting (Article 7-8-3 and 7-12-2)

Detailed procedure is prescribed so that, in case of security fund to be converted into real estate or special asset fund by the Rule on inactive fund and collective investment, asset for investment and kind of fund, etc. may be easily changed with the resolution of Board of Directors through the process to collect investors’ opinions.

I. Adoption of foreign currency short-term financial collective investment system (Article 7-15, Article 7-16, Article 7-16-2, Article 7-17, Article 7-19, and Article 7-36)

Details of foreign currency short-term financial collective investment system is prescribed so that foreign currency MMF is adopted for payment, operation, and repurchase in foreign currency by relieving the regulation that short-term financial collective investment system may be operated in case of Korean currency only and foreign currency MMF may be operated up to 100% of the bond, etc. issued by the government of corresponding foreign currency but shall be operated in a single currency.

J. Allowance of sale of forfeited part in closed-end fund (Article 7-21)

Preemption preference has been assigned to existing investors when collective investment bond of closed-end fund is issued but, if there is forfeited part, the opportunity of purchase may be assigned to the persons other than existing investors.

K. Improvement of the condition of mixed ETF for basic index (Article 7-26)

Mixed ETF of bond and stock was to be configured with 20 or more items and satisfy the conditions of both bond ETF and stock ETF but such condition is improved.

L. Procedure of conversion registration of foreign collective investment system (Article 7-58)

Improvement is made so that, if a foreign collective investment system registered for professional investors is canceled and is re-registered for general investors, the document to confirm consent of all domestic investors is submitted instead of the document to confirm that there is no domestic investor.