Newsnomics AJAY ANGELINA reporter |
South Korea plans to authorize overseas financial firms to participate in the country’s foreign exchange market from the fourth quarter, a latest move to meet “global standards” said the finance ministry on Wednesday July 13,2023.
South Korea, under the eligible measures, will authorize registered foreign institutions to participate in the South Korean foreign exchange market, according to the Ministry of Economy and Finance.
Currently, foreign institutions in South Korea can only participate in the local foreign exchange market by opening a branch here or through other Korean banks.
Hedge funds, typically organized as private partnerships and often located offshore for tax and regulatory reasons are not eligible to gain the status of registered foreign institutions.
The new measure, subject to Cabinet approval is planned to be implemented in the fourth quarter of 2023.
With a purpose to attract more overseas investments, South Korea has been making efforts to lift regulations and invite more foreign participants to the local foreign exchange market.
The country also plans to extend the operating hours of its foreign exchange market, which currently runs for 6 1/2 hours (9 a.m. to 3:30 p.m.), to 17 hours, with it closing at 2 a.m. the following day, as early as the second half of 2024.
