The entire South Korean financial sector obtained legal rights to enter the Indonesian market, Park Mi-ri, a secretary of the South Korean Financial Services Commission (FSC), told Business Korea.
The South Korean FSC and Financial Supervisory Service (FSS) concluded a memorandum of understanding (MOU) with their Indonesian counterpart Otoritas Jasa Keuangan on April 16, for mutual cooperation to enhance financial supervision via exchanging information about each countries' financial firms, the FSC said.
Before the MOU, Indonesia had rejected South Korean financial firms’ enter its market, requiring legal grounds for supervising the firms as a prerequisite, whilst South Korean financial firms have been wishing to enter the Indonesian market, Park Mi-ri said.
As a result of the MOU, “not only South Korean banks, but also insurance companies and securities” can enter into the Indonesian market, she said.