Indirect investment vehicle

Indirect investment (간접투자/間接投資) means collecting funds, etc. from investors to manage the assets including investment securities, exchange traded derivatives or over-the-counter derivatives (장내 또는 장외파생상품), real estate (부동산), real assets (실물자산), etc. and to distribute profits accruing from the management of such assets to investors.

Key words
collective investment, indirect investment, PEF, investment trust, investment company, capital markets, Korea Exchange (KRX)

Indirect investment vehicle
Under the previous Indirect Investment Asset Management Business Act (간접투자자산운용업법), an indirect investment vehicle (간접투자기구/間接投資機構) refers to any of the followings:
 * Investment trust: the indirect investment fund which is used by any truster to collect funds, etc. from investors for any trustee to invest in and manage the property according to the former’s intructions and then distribute beneficial rights accruing therefrom to investors.
 * Investment company aimed for making indirect investments: an indirect investment fund which is the stock company incorporated in accordance with the Commercial Act to manage the property asset of the company and distribute profits accruing therefrom to stockholders;
 * Private equity fund (PEF): a limited partnership company which is incorporated in accordance with the Commercial Act for the purpose of investing the property of a company in shares or equity, etc. of any other company to raise the values of the shares and equity of the invested company by means of participation in corporate governance and improvements in the business structure or the control structure, etc. and to distribute profits accruing from higher values of the shares and equity of the invested company to partners.

The above trust-type fund, company-type fund and private equity fund are actually managed by an asset management company (자산운용회사/資産運用會社). These indirect investment vehicles are still operative as collective investment service under Article 6 (5) of the Financial Investment Services and Capital Markets Act (the "Capital Markets Act" 자본시장과 금융투자업에 관한 법률).

Previous laws related with capital markets
Upon the implementation of the Capital Markets Act on February 4, 2009, the following laws were repealed subject to Article 2 of Addenda of 2007:
 * 1) Securities and Exchange Act (증권거래법)
 * 2) Futures Trading Act (선물거래법)
 * 3) Indirect Investment Assets Management Business Act (간접투자자산 운용업법)
 * 4) Trust Business Act (신탁업법)
 * 5) Merchant Banks Act (종합금융회사에 관한 법률)
 * 6) Korea Securities and Futures Exchange Act (한국증권선물거래소법)