SEOUL Dec 5 A South Korean regulator informed
Goldman Sachs' local unit this week of its intent to
impose disciplinary action for possible breach of domestic
capital markets rules, three regulatory sources said on
The action is expected to be "light", two of the sources
said, usually meaning a simple caution or a warning that limits
the forming of new subsidiaries for up to three years.
The Financial Supervisory Service had reviewed three
brokerages, including Goldman, earlier this year for possible
breach of domestic capital markets regulations.
Regulators had focused their review on whether Goldman's
sale of Malaysian state-backed securities to domestic investors
had followed domestic capital markets regulations, such as
requiring the sales to be transacted through a local unit
licensed to sell products in South Korea.
The action must be approved, with a final decision expected
by the end of the year at the earliest, said the sources with
direct knowledge of the matter.
A Seoul-based Goldman Sachs spokesman declined to comment. A
spokesman for the regulator declined to comment on an ongoing