Legal Ground
The government decided to introduce the ETF system to revitalize the stock market and seek the sound growth of the asset management industry by expanding reliable demand foundations of the securities market. For this reason, it introduced the ETF system by amending relevant regulations including the Securities Investment and Trust Business Act (Jul 28, 2002), and expanded the underlying assets of investment vehicle in the Financial Investment Service and Capital Market Act (hereinafter referred to as Capital Market Act) enforced in February 4, 2009, following the Indirect Investment Asset Management Business Act, expanding the institutional basis for the industry through the ETF system (Article 234 of the Capital Market Act ).
The governing law of a fund is the Capital Market Act and its official name is a Collective Investment Vehicle. The Capital Market Act defines collective investment as below. As understood in the definition, a fund is called a collective investment vehicle in that investment is made by collecting money of multiple people.