The Korean financial market had long been regulated by several dispersed laws. However, with the enactment of the Financial Investment Services and Capital Markets Act (the FISCMA) in 2009, the regulatory principles have been partly integrated. As one of the central elements in the FISCMA is the reinforced investor protection, it is necessary to review the changes and discuss suggestions for improvement. Thus the article primarily focuses on the three tenets of investor protection: duty to explain, principle of suitability, and methods to prevent conflicts of interest. In reviewing these subjects, the article explains the new changes in the FISCMA, which were mainly brought on by the transformation from institutional to functional regulations of financial businesses. Also, for comparison it notes the similar regulations existing in the U.S laws. The obstacles that still remain in FISCMA concerning investor protection are discussed as well. Regarding conflicts of interest, the FISCMA presents such a wide range of regulatory measures as imposing the duty of good faith, prohibiting the specific conduct of business, and requiring financial business entities to establish the internal control system as well as the Chinese wall. Even though the changes found in the FISCMA are appropriate concerning the broadening scope of financial businesses, it is recommended that the compensation for damages to investors and the principles of fiduciary duty should be further complemented. The authors hope this article contributes to expanding our knowledge of the new legislation governing the Korean financial market.