SOUTH KOREA Trends and Developments Contributed by: Je Won Lee, Kyu Seok Park, Dahye Cho and Justin Kim, Lee & Ko
For example, an unseasoned general partner seek - ing to form a project private equity fund to invest in a certain company may have those with industry expe - rience in the target’s industry as fund-managing per - sonnel as well. Under the amended FISCMA, these personnel can no longer become fund-managing personnel and only those directly responsible for the fund management may register as fund-managing personnel. Regulations on general partners have also been strengthened so that unlike in the past, where general partners were indirectly regulated by regulations on private equity funds, there are now various regulatory mechanisms that take direct measures for inspection on general partners under the amended FISCMA. This change likely reflects the intention of the Korean supervisory authorities to further tighten the supervi - sion on general partners going forward. Finally, as mentioned above, as new restrictions are imposed on the types of investors that can participate in institutional private funds, newly established gener - al partners that cannot receive investments from these investors have increased barriers to market entry.
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