[Photo by Kim Yu-jin]
The Ministry of Finance and Economy told an OECD meeting it has strengthened access to Korea’s financial markets by improving foreign exchange and capital market rules, highlighting steps it said support market modernization.
The ministry said on April 22 it attended the OECD Advisory Task Force on the Codes of Liberalisation, held April 20-21 at the OECD headquarters in Paris, and presented updates on Korea’s FX market operations and efforts to overhaul capital market systems.
The OECD advisory meeting is a forum that shares trends related to the codes on capital movement liberalization and, through peer reviews among member countries, discusses the degree of capital market opening and access to financial markets.
At the meeting, the ministry outlined recent changes in FX and capital market conditions and the results of institutional reforms. In the FX market, it said it expanded the FX forward position limit for foreign bank subsidiaries to 200% from 75% and rationalized regulations on FX lending, steps aimed at improving market access for foreign investors.
In capital markets, it cited reforms including allowing integrated foreign accounts to make it easier for foreign investors to trade domestic stocks, and a temporary suspension of FX stability-related levies.
The government also shared plans to advance FX and capital markets with the goal of inclusion in MSCI’s developed market index. It said it aims to improve conditions for foreign participation through measures such as 24-hour FX market operations, better infrastructure for offshore won settlement, streamlined investment procedures and greater regulatory consistency.
The ministry said it also shared its experience responding to market stability challenges amid increased exchange-rate volatility tied to a prolonged Middle East situation and growing uncertainty in the global trade environment. It said it found common ground with OECD members on approaches to stabilizing FX and financial markets and agreed on the need for policy coordination.
A ministry official said the steps are expected to help ease the “Korea discount” linked to constraints on FX market access and to strengthen the foundation for a “Korea premium” by boosting the structural appeal of Korea’s capital markets.
The ministry said on April 22 it attended the OECD Advisory Task Force on the Codes of Liberalisation, held April 20-21 at the OECD headquarters in Paris, and presented updates on Korea’s FX market operations and efforts to overhaul capital market systems.
The OECD advisory meeting is a forum that shares trends related to the codes on capital movement liberalization and, through peer reviews among member countries, discusses the degree of capital market opening and access to financial markets.
At the meeting, the ministry outlined recent changes in FX and capital market conditions and the results of institutional reforms. In the FX market, it said it expanded the FX forward position limit for foreign bank subsidiaries to 200% from 75% and rationalized regulations on FX lending, steps aimed at improving market access for foreign investors.
In capital markets, it cited reforms including allowing integrated foreign accounts to make it easier for foreign investors to trade domestic stocks, and a temporary suspension of FX stability-related levies.
The government also shared plans to advance FX and capital markets with the goal of inclusion in MSCI’s developed market index. It said it aims to improve conditions for foreign participation through measures such as 24-hour FX market operations, better infrastructure for offshore won settlement, streamlined investment procedures and greater regulatory consistency.
The ministry said it also shared its experience responding to market stability challenges amid increased exchange-rate volatility tied to a prolonged Middle East situation and growing uncertainty in the global trade environment. It said it found common ground with OECD members on approaches to stabilizing FX and financial markets and agreed on the need for policy coordination.
A ministry official said the steps are expected to help ease the “Korea discount” linked to constraints on FX market access and to strengthen the foundation for a “Korea premium” by boosting the structural appeal of Korea’s capital markets.
* This article has been translated by AI.
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