Financial watchdog will get more power

The Financial Supervisory Commission will be given greater investigative authority such as the power to request records of communications and on-site inspections of suspected companies for the purpose of curtailing insider trading practices. ¡°The government and the ruling Millennium Democratic Party are planning to submit revisions of the Securities and Exchange Laws that would give greater investigative authority to the FSC, such as on-site investigations, summons for questioning and requests of private communications,¡± a source in the ruling MDP revealed September 3.

The revision is aimed at blocking the illegal trading practices, the source said. With the proposed revision, without a seizure warrant issued by the court, the FSC will be able forcibly to enter the place of suspected businesses and investigate the suspected illegal activities. The FSC also will have the right to seize and keep in custody any evidence it might find, thereby being given a much greater authority than previously. The FSC will not only have the authority to summon those suspected of masterminding suspected illegal trading activities but also those who are suspected of aiding the illegal activity. Should the proposed revision pass the National Assembly, it will not only work to effectively curtail such practice as price fixing by the so-called "strategic influence." However, it is also expected to raise anxieties of the FSC becoming an adverse authority in the financial market with authority equaling or even surpassing the Prosecutor`s Office.