SEOUL — South Korea plans to scrap plenty of rules in the native inventory market inside this yr to make funding easier for international traders, its financial regulator mentioned on Tuesday, in an effort to deliver in extra money into the market.
The Financial Providers Fee mentioned in a press release there was an enormous discrepancy between the rules presently in place and the worldwide requirements and that “(it) will boldly improve regulations that have hindered global investors from investing in our market.”
The regulator mentioned it might scrap a three-decade-old rule that requires foreigners to register with authorities prior to buying and selling South Korean stocks. As an alternative, they are going to be allowed to open accounts with an internationally used identification, equivalent to passport for people or authorized entity identifier (LEI) for organizations.
It’s going to additionally raise a rule that requires omnibus account holders, equivalent to asset administration companies and brokerages, to report on transaction particulars of every closing investor inside two days of settlement, in addition to open up most of off-board buying and selling to foreigners.
In the meantime, it’ll grow to be obligatory for South Korea’s listed firms to present company filings in English from 2024, beginning with these of enormous sizes or excessive ratio of international shareholders, in accordance to the assertion.
The push comes as South Korea pursues the promotion of its inventory market to Morgan Stanley Capital Worldwide’s developed market index. It’s presently categorized as an rising market by the worldwide index supplier.
The regulator plans to full the required laws revision course of in the primary half of this yr to implement such modifications inside 2023. — Reuters