Private Equity Funds in Korea Face Risks From Proposed Bills (1)

A South Korean lawmaker in the ruling party has proposed a bill to heighten disclosure requirements for private equity funds, adding to growing calls for tighter oversight of the industry.

The bill, backed by Min Byoung-dug of the Democratic Party last week, would remove some exemptions that local private equity funds enjoyed on disclosure requirements imposed on other funds open to retail investors. If enacted, the proposals would mandate buyout firms to disclose quarterly asset management reports, among others.

The move comes as other pending bills in the legislature seek to tighten rules on local PE firms. In June, another ...