[Consultation] Review of Legal Requirements for Acquisition and Registration by Online Investment Participants]

Law firm Veat undertook legal review related to the acquisition and registration of online investment companies upon the request of online investment financial brokerage firm A.

Law firm Veat first, analyzed the relevant regulations comprehensively in relation to the online investment company acquisition under the “Act on Online Investment Linked Financial Business and Protection of Investors,” to determine whether the online investment company registration was maintained. Based on this, it provided an opinion on whether it should proceed with changed registration.

Furthermore, when acquiring an online investment company, it outlined the conditions required of the controlling shareholder if it became a controlling shareholder.

Notably, Law firm Veat actively inquired to the financial authorities, investigating whether there were any examples of online investment companies being acquired, and that in the case of acquiring an online investment company, an assessment is made based not only on the regulations but also on other criteria, considering the circumstances of the acquiring company and the acquired company.

Law firm Veat also inquired about the possibility of direct online investment company registration, and based on the relevant regulations such as the “Act on Capital Markets and Financial Investment Business,” it provided a legal opinion on the possibility of online investment registration by carefully legal review of the customer’s current main business to determine if it is a business covered by regulations.

According to the “Act on Online Investment Linked Financial Business and Protection of Investors,” the business that an online investment company can undertake is limited to online investment, linked investment business, assignment and assignment of principal and interest receivables business, business of evaluating the credit status of borrowers and providing the results to investors, management and collection of linked loan receivables, development of credit rating models for evaluating the credit status of borrowers, etc.

The online investment company is subject to comprehensive assessment by the Financial Supervisory Service and the Financial Supervisory Committee, considering diverse regulations such as the “Act on Capital Markets and Financial Investment Business,” which is difficult for general companies to access, and requires expertise and analysis abilities regarding the “Act on Online Investment Linked Financial Business and Protection of Investors.” Therefore, it is recommended to consult with experienced lawyers to efficiently and accurately proceed with the necessary procedures.

Law firm Veat provides practical advice based on experience providing advice to various financial institutions, and offers advice based on its extensive knowledge regarding the “Act on Online Investment Linked Financial Business and Protection of Investors.”

If you need legal advice on the “Act on Online Investment Linked Financial Business and Protection of Investors,” online investment company, or online investment business, please contact Law firm Veat.

Thank you.

Law firm Veat