The Financial Supervisory Service (FSS, financial regulator) ordered newly established private equity firms to strengthen asset management, internal controls and sound business practices as the sector expands. The number of newly established firms rose 57% over four years, reaching 430 in 2025 from 273 in 2021. At a CEO briefing on the 2nd, the FSS reviewed industry trends, regulatory recommendations and recurring violations, including misuse of job-related information, management of collective investment assets at the request of investors or sales entities, failure to appoint compliance officers, overlapping duties, inadequate compensation standards, inactive evaluation systems and employee trading in financial investment products. The regulator signaled that firms would be held strictly accountable for violations. Seo Jae-wan, Deputy Director of the Financial Investment Division at the FSS, said similar illegal activities continue despite guidance on past disciplinary cases and urged firms to prioritize investors. The Korea Financial Investment Association separately offers training on compliance, internal control and risk management.