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Relevant Laws

Title：Securities and Exchange Act (2023.06.28)
Article 66 (Sanctions for Legal Violations by Securities Firms)
    Where a securities firm has violated this Act or any order issued hereunder, in addition to being subject to the punishment provided under this Act, the Competent Authority may, depending on the severity of the offense, impose any of the following sanctions, and furthermore may order the securities firm to correct the violation within a prescribed period:
  1. warning.
  2. ordering the securities firm to remove its directors, supervisors, or managerial officers from their office.
  3. suspending the business, in whole or in part, of the company or its branch for a period of not more than six months.
  4. voiding or revoking the business license of the company or its branch.
  5. other necessary measures.
Article 71 (Firm Commitment Underwriting of Securities)
    A securities underwriter which underwrites securities on a firm commitment basis shall, at the end of the period of underwriting specified in the underwriting agreement, subscribe the unsold portion of securities for its own account.
    The securities underwriter which underwrites securities on a firm commitment basis may subscribe to such securities before placing them for sale or it may specify in the underwriting agreement that a portion of the securities covered in the agreement shall be reserved for subscription by the underwriter for his own account.
    The qualifications required for an underwriter to undertake firm commitment underwriting shall be prescribed by the Competent Authority.