Dec. 22 (UPI) -- The South Korean government has vowed to strengthen regulations on private equity funds amid controversy surrounding MBK Partners' troubled investments in the country's second-largest discount chain, Home Plus.
The Financial Services Commission said Monday that it would introduce a "one-strike-out" system under which a private equity fund's operator's license can be revoked due to a single serious violation of relevant laws.
Thus far, the financial authorities have been able to cancel the registration of PEF operators, called general partners only in cases involving repeated unlawful conduct.
As the active managers of funds, general partners take charge of investment decisions and portfolio management, while limited partners are typically passive investors who provide most of the capital.
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