SEOUL (Reuters) – South Korea plans to deregulate its domestic stock market by the end of the year to make it easier for foreign investors to invest, the financial regulator said on Thursday. market.
The Financial Services Commission said in a statement that there are “significant gaps between the regulations currently in place and global standards” and that “[it]will change the regulations that have prevented global investors from investing in our markets.” We will make bold improvements,” he said.
The regulator said it would abolish a 30-year-old rule that required foreigners to register with authorities before trading Korean stocks. You are allowed to open an account with an ID that is publicly used.
It also lifted the rule requiring omnibus account holders, such as asset managers and brokerage firms, to report the details of each end-investor’s trades within two days of settlement, moving most off-board trades to foreign countries. open to people
Meanwhile, South Korean listed companies will be required to file corporate registrations in English from 2024, starting with large companies and those with a high proportion of foreign shareholders, according to the statement.
The move comes as South Korea seeks stock market promotion to the Morgan Stanley Capital International developed markets index. It is currently classified as an emerging market by global index providers.
The regulator expects to complete the necessary legislative reform process in the first half of this year to implement such changes within 2023.
Interviewed by Lee Ji Hoon Edited by Tomasz Janowski
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