[Asia Economy Reporter Park Jihwan] The Financial Supervisory Service (FSS) will begin an inspection of the Korea Exchange (KRX) in August. The inspection will cover all operations except for the management sector.
According to financial authorities on the 11th, the FSS reported the "Korea Exchange Inspection Implementation Plan" at the Financial Services Commission's regular meeting on the 9th. This will be the first comprehensive inspection of the KRX's overall operations in 11 years since 2010. The schedule includes a preliminary investigation in early August and the main inspection at the end of August.
Although the KRX was deregulated from a public institution in 2015, it is still considered a public-related organization performing government-commissioned tasks, so the FSS can conduct inspections upon request from the Financial Services Commission. The FSS had also attempted a comprehensive inspection of the KRX last year, but it was canceled due to failed consultations with the Financial Services Commission.
The scope of this inspection is expected to cover all operations under the Capital Markets Act. However, management areas such as personnel affairs are excluded from the inspection scope, considering that until 2015, as a public institution, the KRX was audited by the Board of Audit and Inspection, and after deregulation, it underwent management performance evaluations and budget guidelines.
The FSS plans to address issues that have been pointed out by investors and the National Assembly, including market makers related to short selling, unfair trading, listing, delisting, and market operations. There is also a possibility that matters related to recent consecutive system failures and trading systems will be included in the inspection.
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