South Korea's Financial Supervisory Service investigates Goldman Sachs
Regulatory authorities in South Korea had completed the investigation int the local operations of Goldman Sachs Group Inc. It is now in process of reviewing and analyzing the results.
There has been no decision reached yet by the Financial Supervisory Service stemming from investigation. This was confirmed by FSS Director General Cho Gook Hwan. In a related report made by the Korea Economic Daily, the regulator is also planning to ask local prosecutors to investigate Goldman's Hong Kong unit. This was for the allegations made by unidentified FSS officials that the HK unit had offered investments to Korean clients without a license.
The regularor is reviewing derivatives sales of three foreign brokerages in its compliance to South Korean rules. The FSS had reviewed Credit Suisse Group AG, Royal Bank of Scotland Plc and Goldman Sachs.
For its part, Goldman Sachs said it is "cooperating fully with the regulator's ongoing inspection and is unaware of any conclusion stemming from it." This was confirmed through an emailed statement from Goldman Sachs spokesman Christopher Jun.