| In order to successfully develop Capital market and enhance the international competiveness of Korean financial industries, Capital markets'investors and the investors of financial commodity demanders need to be more reliable for providing a more attractive investing market environment. As a result, regulations for investors'protection are very important.The legal supervision system of Korean financial market in the past consisted many issues. The main issue is that because the system utilized financial products listing doctrine, the new financial products that are outside of this list will not be supervised. Hence, causing issues like same financial products selling in different financial institutions, employing in different regulations and that the investors are not able to received the accurate legal protections. In order to solve these kinds of problems and continue to develop the Capital Market, Korea refers to foreign legislation that integrated the law to solve related problems. Promulgating the Capital Market and Financial Investment Act, which is a regulation that integrated by the entire Capital market besides banking markets and insurance markets.Capital Market and Financial Investment Act perfectly strengthen the investors'protection system by introducing the all-inclusive-theory of financial investment industry and financial investment products. It also strengthens the protection system by alternating to functional regulation from the commodity, institutional type regulation.Moreover, in the part that is related to investment solicitation in Capital Market and Financial Investment Act, it emphasizes the description obligation and introduces the proper principles. At the same time, in order to solve the problems between financial firms and investors, and issues between investors themselves, Capital Market and Financial Investment Act provides related prevention system. And in order for investors to have sufficient information while making correct financial decisions, the regulation expands the scope of information exposure system. In addition, in order to prevent improper securities-related transactions, it also expands the scope of prohibited targets for inside trading and market manipulation. It as well forbids improper solicitation investing actions by prohibiting uninvited solicitation investing system, further solicitation system and false statement behavior.This article focuses on one of the reformed core contents, "the investors'protection system" in Capital Market and Financial Investment Act. It explains the role that the regulation plays in investors' protection system, and analyzes some related issues. The paper also provides several suggestions for current Chinese financial reformation. |
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