Sok-dong Kim, Chairman of FSC had visited Mongolia on September for deliberating the way to facilitate financial service cooperation between South Korea and Mongolia. During this session, the both parties agreed on concluding MOU on financial cooperation which had been designed since June, 2010. The MOU is 25th MOU in terms of Korean FSC and it is recognized as improved foothold for expansion of Korean financial system into developing countries.
1. Details of the MOU
The main purpose of the MOU is to make stable foundation for mutual cooperation among South Korean FSC, Mongolian Central Bank and Mongolian Financial Regulatory Commission(FRC). Even though the MOU cannot require the both to change own countries’ legal system and not have legal enforcement on both parties, this MOU is meaningful for that both authorities set the foothold for fulfilling their needs to exchange information for financial stability
1.1 Exchanging information for monitoring financial participants and capital market.
MOU is designed for supervising financial participants(e.g. banks, securities, insurance corp). Especially it would focus on money laundering, internal transaction and market manipulation. Furthermore, under the MOU, both authorities could make joint monitoring process including visitation on financial corporations that expanded their business from S.Korea to Mongolia or from Mongolia to S.Korea.
1.2 Building High-level consultative committee
Both authorities would establish high-level dialogues if mutual agreement would be settled and necessity could be derived from the both. This dialogues would be held when both parties feel the needs to discuss and the agenda for the session should be set a month before the date dialogues would be held.
Mutual technical support(periodic Joint Education Programs, Workshops), Mutual visit study between both parties had concluded on the MOU.
2. Foreign Financial Cooperation Committee
During a decade, developing countries’ demand for financial capacity building has been enlarged. Taking this moment, FSC has planned to establish and manage Foreign Financial Cooperation Committee. The main purpose of this FSC based organization is to fulfill developing countries’ need by supporting them to build financial infra-structure and stability of financial sector of developing countries.
The main participants of this committee consist of Financial Service Commission, Public Financial Sectors(Financial Supervisory Service, Korea Development Bank, Korea Exchange, etc), Private Financial Sectors(Banks, Securities, etc) and non-official specialists. Issues that would be discussed during the session are settling strategies for oversea expansion and cooperation, monitoring current state of oversea expansion and sharing information on experience and problems as the participants had faced during their expansion period.
FSC expects to establish a ground for systemical and effective cooperation among domestic authorities for expanding Korean Financial system to developing countries