Reuters) – South Korea has seen its financial sector’s future, and it’s hedge funds.
Asia’s fourth-largest economy is seeking to develop homegrown hedge funds, while attracting foreign money managers that would raise its clout as an Asian financial centre.
This would be a major event in a country that has been highly protective of its companies and fearful that hedge fund trading strategies, which typically include short selling and leveraging bets, will heighten volatility in a market dominated by retail investors.
But doubts remain over how swiftly regulations will be eased or whether public resentment against hedge funds and a culture of low fees can be overcome. Blow-ups of hedge funds such as at Bear Stearns (BSC.N: Quote, Profile , Research) are unlikely to make the swaying easier.
Finance Minister Kwon O-kyu last month noted South Korea would draft a road map this year to allow the establishment of locally-incorporated hedge funds, sparking buzz that the government was serious about its goal.
Reuters – South Korea has seen its financial sector’s future, and it’s hedge funds.
Asia’s fourth-largest economy is seeking to develop homegrown hedge funds, while attracting foreign money managers that would raise its clout as an Asian financial centre.
This would be a major event in a country that has been highly protective of its companies and fearful that hedge fund trading strategies, which typically include short selling and leveraging bets, will heighten volatility in a market dominated by retail investors.
But doubts remain over how swiftly regulations will be eased or whether public resentment against hedge funds and a culture of low fees can be overcome. Blow-ups of hedge funds such as at Bear Stearns (BSC.N: Quote, Profile , Research) are unlikely to make the swaying easier.
Finance Minister Kwon O-kyu last month noted South Korea would draft a road map this year to allow the establishment of locally-incorporated hedge funds, sparking buzz that the government was serious about its goal.
