All financial institutions are subject to the supervision of the Financial Supervisory Commission (FSC) and its executive arm, the Financial Supervisory Service (FSS). The FSC is responsible for establishing policies and financial development in the capital market while FSS conducts supervision and surveillance.

There are also a number of regulatory organizations involved in the market, including Korea Financial Investment Association (KOFIA), Korea Exchange (KRX), and Korea Securities Depository (KSD), among others.

Inflation Targeting

Bank of Korea (BOK) has used inflation targeting as part of its monetary policy since 1998. For the period 2007–2009, the inflation target was set at a range of 3%, plus or minus 0.5%.

Monetary Policy Decision

In March 2008, BOK decided to adopt a new benchmark interest rate replacing the target overnight (uncollaterized) call rate then used for interbank borrowings with the 7-day repo rate known as the BOK Base Rate. The Base Rate now serves as the rate for 7-day repo and the minimum bid rate for 7-day reverse repo in open market operations.

Further details on the monetary policy of the Republic of Korea may be found by following the BOK link provided below.

The Republic of Korea’s Ministry of Strategy and Finance (MOSF) is responsible for policies involving medium- to long-term economic and social development, including taxation, finance, national treasury, and state-owned properties. MOSF’s responsibilities also include foreign exchange and debt, external economic cooperation, and stabilizing the livelihoods of Koreans.

The Korea Financial Investment Association (KOFIA) was formed as the result of the merger of Korea Securities Dealers Association (KSDA), the Asset Management Association of Korea (AMAK), and the Korea Futures Association (KOFA). KOFIA comprises securities companies, investment advisors, and futures firms. It aims to strengthen the global competitiveness of the financial investment industry.

Korea Exchange (KRX) is responsible for the operation of the stock market, KOSDAQ, and the futures market.

The Korea Securities Depository (KSD) is the country's sole central securities depository.

The Bank of Korea (BOK) determines and monitors currency exchange controls and administers securities payments systems. BOK also manages the issuance and redemption of treasury and foreign exchange equalization fund bonds.

The Korea National Tax Service oversees all taxation affairs.