Definition of finance Financial Systems Laws in the market economy

I. Definition of finance (a) Management of money or ‘funds’ management. (b) Family of business activity. I. Definition of finance (a) Management of money or ‘funds’ management. (b) Family of business activity. II. Financial system Public and Private interests and the markets that serve them. II. Financial system Public and Private interests and the markets that serve them. III. Laws in the market economy 54 Laws including statues (Banks, Insurances, Securities, Assets) and rules(Related their Supervision) in Korea. III. Laws in the market economy 54 Laws including statues (Banks, Insurances, Securities, Assets) and rules(Related their Supervision) in Korea.

I. Definition (a) The system allows the transfer of money between savers and borrowers. (b) A set of complex and closely interconnect financial institutions, markets, instruments, services, practices and transactions. I. Definition (a) The system allows the transfer of money between savers and borrowers. (b) A set of complex and closely interconnect financial institutions, markets, instruments, services, practices and transactions. Financial system II. Financial Institutions (a) An institution that provides financial services for its clients or members. (b) Financial service provided by financial institutions is acting as financial intermediaries. (C) Most financial institutions are regulated by the government. II. Financial Institutions (a) An institution that provides financial services for its clients or members. (b) Financial service provided by financial institutions is acting as financial intermediaries. (C) Most financial institutions are regulated by the government.

Financial system III. Major types of institutions (a) Deposit-taking Institutions (b) Insurance companies and pension funds (C) Brokers, underwriters and investment funds. (a) (b)(C)

Bank Credit union Trust company Mortgage loan company (a) Deposit-taking Institutions

Insurance company Underwriter Pension fund Investment fund (b) Insurance companies and pension funds (C) Brokers, underwriters and investment funds

IV. International financial Institutions IMF World Bank BIS IOSCO IAIS

I. Definition of Commercial Law (a) Formal Commercial Law : “ Commercial Code ” (b) Practical Commercial Law (Academic Concept) : “ The Company defined by Law ” I. Definition of Commercial Law (a) Formal Commercial Law : “ Commercial Code ” (b) Practical Commercial Law (Academic Concept) : “ The Company defined by Law ” Financial law and Commercial law II. Common (a) They are laws about the economic.(households, firms and government) (b) They reflect historical back ground, legislative policies and economy So, they contain varied contents in each country’s characteristic. (C) They contain Insurance Law. II. Common (a) They are laws about the economic.(households, firms and government) (b) They reflect historical back ground, legislative policies and economy So, they contain varied contents in each country’s characteristic. (C) They contain Insurance Law.

RemarksStandardFinancial lawCommercial law Differences Objective System Financial law and Commercial law

Financial law in the Socialist countries I. Definition (a) The branch of law that regulates social relationships arising from the state’s financial activities. (b) Financial activity is a particular type of activity in the exercise of state power and state administration and is regulated as a whole by the norms of administrative and state law. (C) The principal institutions of financial law are budget law. I. Definition (a) The branch of law that regulates social relationships arising from the state’s financial activities. (b) Financial activity is a particular type of activity in the exercise of state power and state administration and is regulated as a whole by the norms of administrative and state law. (C) The principal institutions of financial law are budget law.

II. China financial institutions CBRC CSRC CIRC PBC

WorkUnited StateChina Supervision General Savings banks Invest trust companies non-bank companies Monetary policy Securities Futures Markets Insurance U.S financial institutions and China

Islamic finance I. Definition of Islamic finance (a) Islamic finance operates by Islamic Law ( Shariah ) → Profitability < Morality or Social( Quran and Hadith ) (b) Committee of Shariah determines legality of financial products (C) Islamic finance prohibits payment of interest and charges ( Riba ). (d) The Main products of the Islamic bond is Sukuk. → Sukuk is consists of Murabaha, Mudaraba, Ijara, Mushakah, Istithna, Muqarada, Salam, and Mujara. I. Definition of Islamic finance (a) Islamic finance operates by Islamic Law ( Shariah ) → Profitability < Morality or Social( Quran and Hadith ) (b) Committee of Shariah determines legality of financial products (C) Islamic finance prohibits payment of interest and charges ( Riba ). (d) The Main products of the Islamic bond is Sukuk. → Sukuk is consists of Murabaha, Mudaraba, Ijara, Mushakah, Istithna, Muqarada, Salam, and Mujara.

Murabaha When Financial Institution provides funds to buy, Such funds and fees are recovered in installments.

Mudaraba First, Financial Institution provides a money type of investment to the corporates. And when the corporates make a profit, the financial institution takes the principal and some of earnings.

Legal Search(West Law)

References 1) Financial law by Kim 2) Lecture on Commercial Law by Dr. Chung 3) Wikipedia - financial law, international financial institutions - U.S financial institutions, financial industry. 4) Islamic banking and finance legal systems around the maintenance status by Su-Hyun An 5) Islamic finance by 6) West law Fordham of corporate & finance law by Susan Lorde Martin