The Financial Services Commission said that there was a huge discrepancy between the regulations currently in place and the global standards and that it will “boldly improve regulations that have hindered global investors from investing in our market”. — Reuters
SEOUL: South Korea plans to eliminate a number of regulations in the local stock market this year in order to make investment easier for foreign investors, in an effort to attract more money to the market, according to the country’s financial regulator.
The Financial Services Commission said that there was a huge discrepancy between the regulations currently in place and the global standards and that it will “boldly improve regulations that have hindered global investors from investing in our market”.
The regulator said it would scrap a three-decade-old rule that requires foreigners to register with authorities prior to trading South Korean stocks.
Instead, they will be allowed to open accounts with an internationally accepted identification, such as a passport for individuals or a legal entity identifier for organisations.
It will also repeal a rule requiring omnibus account holders, such as asset management firms and brokerages, to report on the transaction details of each final investor within two days of settlement, as well as open up most off-board trading to foreigners.
It will become mandatory for South Korea’s listed companies to provide corporate filings in English from 2024, starting with those of large sizes or with a high ratio of foreign shareholders. — Reuters
