South Korea probes 3 foreign brokerages including Goldman
SEOUL (REUTERS) - South Korean financial regulators are reviewing three foreign brokerages including Goldman Sachs Group Inc's local unit for possible breach of domestic capital markets regulations, a source at one of the regulators said.
The Financial Supervisory Service (FSS) is investigating whether Goldman Sachs sold foreign bonds in the domestic market through its Hong Kong unit, which does not have any license to sell such products directly in South Korea, the source told Reuters on Monday.
The source declined to be identified due to the sensitivity of the subject and because the probe is still ongoing.
The FSS said on Sunday that it was reviewing three foreign brokerages, without identifying them in its brief statement. The regulator is investigating their business practices to see if they are following domestic capital markets regulations, according to the statement.