Lee Ok-yeon, chairman of the Financial Services Commission, announced plans to expand the scope of foreign integrated accounts to include exchange-traded funds (ETFs) in order to attract foreign investment in the domestic stock market. He also revealed the establishment of a large-scale international investor relations (IR) event called 'Korea Premium Week.' This initiative aims to transition from the 'Korea Discount' to a 'Korea Premium' era through the globalization of capital markets.
During a press conference held on the third floor of the Government Seoul Building in Jongno-gu, Seoul, on May 21, Lee stated, "We will actively promote the globalization of capital markets to attract global funds and high-quality assets, moving beyond a domestic-focused approach." The conference focused on the major achievements of the first year of the administration and key initiatives moving forward.
He emphasized that while overseas individual investors are eager to purchase Korean stocks, there are currently insufficient mechanisms to facilitate this interest, saying, "We will address this issue."
The Financial Services Commission plans to broaden the trading scope of foreign integrated accounts from stocks to include ETFs. This account system allows foreign investors to invest in the domestic stock market without needing to open an account with a local brokerage. The need for this expansion has arisen due to an increase in foreign individual investors entering the Korean market.
Lee explained, "Currently, both institutional and individual investors can invest in domestic stocks through foreign integrated accounts. From April 26 to May 15, the cumulative trading volume reached approximately 58 trillion won, with net purchases around 22 trillion won, indicating significant capital inflow."
He added, "At present, trading is limited to stocks, but we aim to expand this to include ETFs. We will soon announce regulatory changes, and for those ready, we plan to implement this quickly through non-action letters, even if it takes time."
Additionally, the Financial Services Commission will host 'Korea Premium Week' in September, a large-scale IR event targeting foreign investors. This event aims to establish itself as a representative international event for the Korean capital market, similar to Japan's 'Japan Week' and Taiwan's 'Taiwan Week.'
Lee noted, "Previously, various institutions held IR events separately, but we will systematically integrate and coordinate these to create an international event representing the Korean capital market. The program will be comprehensive and multifaceted over the course of a month, and we will also pursue overseas IR efforts to attract promising global companies to list on KOSDAQ."
The commission is also accelerating efforts to improve capital market regulations. It is preparing to implement a ban on dual listing principles by July. To this end, two seminars will be held this month, and a draft of detailed regulations and guidelines will be released from late May to early June.
Lee stated, "Rather than specifying exceptions for future advanced industries, we are focusing on clarifying the board's obligations to protect shareholders and establishing criteria for evaluating shareholder protection efforts. It is important to create universally applicable procedures and standards."
He reiterated the need to ease regulations on network separation in the financial sector. The commission plans to temporarily relax these regulations for financial companies with a certain level of security capabilities that utilize AI for enhanced security, subject to expert review. Furthermore, it is considering completely abolishing network separation regulations for financial companies with advanced security capabilities and AI integration.
* This article has been translated by AI.
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