FSS attracts interest from Southeast Asia

Financial Supervisory Service (FSS) First Senior Deputy Governor Yoo Kwang-yeol, center, poses with officials from Lao Securities Commission Office, Indonesia's Financial Services Authority and the FSS, at the FSS on Yeouido, Seoul, Tuesday. / Courtesy of FSS

By Kim Bo-eun

Government officials and financial experts from Southeast Asian countries are rushing to learn from Korea's financial regulatory system as their financial markets have been growing rapidly in line with their economic development.

The Financial Supervisory Service (FSS) attributes this to its not only being a well-established system, but also Seoul's proximity as well as similarities in culture. To meet growing demand from these nations, the FSS has offered a variety of programs introducing the supervisory system here.

Six officials from Indonesia's Financial Services Authority and the Lao Securities Commission Office took part in a six-week training course on financial supervision, hosted by the FSS, beginning on June 3.

During the extensive course, they heightened understanding about supervision systems for banks and securities firms. They visited financial institutions including the Korea Exchange, the Korea Security Depository and the Korea Deposit Insurance Corporation.

Andi Tito Pratama, an analyst at Indonesia's Financial Service Authorities who took part in the program, said “It was informative to learn about commercial banking and the capital market in Korea. We plan to conduct comparative studies for application to jurisdiction practices in Indonesia.”

“The course was helpful for development of the capital market in Laos because we are currently in the process of amending related laws to be in line with international practices,” said Alounna Sivongthong, an official at the Lao Securities Commission Office who participated in the program.

The FSS has been holding a host of programs, especially for officials from the fast-growing Southeast Asian region. In some cases, the programs are held upon the request of counterparts of the FSS there.

Last year, 306 officials of 14 countries took part in 21 programs held here. The countries include the 10 ASEAN states, as well as the Netherlands, Russia and China.

The programs included those in which FSS officials traveled to Vietnam and Laos to host courses on supervision of securities firms.

This year, six programs have been held so far, with officials from 10 countries including Azerbaijan and Nigeria taking part.

The FSS hosted another team of officials from Southeast Asian countries last month, in a joint program with Korea International Cooperation Agency.

The officials of institutions supervising insurers in Vietnam, Cambodia, Myanmar, Laos, the Philippines and Thailand learnt about insurance policies and supervision during the two-week program.

The FSS will hold another training session in November for officials from Vietnam and Cambodia.

The exchanges with financial authorities in Southeast Asia are considered helpful as Korean financial firms in the region cooperate with local authorities there.

The Financial Supervisory Service was established in 1999, by integrating four institutions each supervising banks, securities firms, insurers and a credit management fund.

“As a country that achieved rapid economic development, Korea managed to establish a competitive financial supervisory system in a relatively short period, by learning from countries including those of western Europe and the U.S.,” said Eun Ho-ik, head of the international cooperation coordination team.

“We hope to continue exchanges with existing counterparts as well as meet new partners in other regions.”