FSS reiterates plans to create foreign-friendly financial markets

Korea will lift regulations for overseas financial firms and implement foreign investor-friendly measures to match global standards, the financial regulator’s chief said Wednesday.

Financial Supervisory Service Gov. Lee Bok-hyun speaks to the CEOs of 11 foreign financial firms during a meeting held at Fairmont Ambassador Seoul in Yeouido, western Seoul, on Wednesday. [NEWS1]

Korea will lift regulations for overseas financial firms and implement foreign investor-friendly measures to match global standards, the financial regulator’s chief said Wednesday.

“Financial authorities will develop Korea into a global financial hub by lifting its mandatory registration policy for foreign investors within this year and by implementing phased mandates to have listed companies file English disclosures,” Financial Supervisory Service (FSS) Gov. Lee Bok-hyun told CEOs of 11 foreign financial firms at a meeting held in Yeouido, western Seoul.

Some of the attendees included JP Morgan Korea CEO Howard Kim, HSBC Seoul CEO Jung Eun-young, MetLife Insurance Korea CEO Song Young-rok, AIA Korea CEO Nathan Michael Chuang, Yuanta Securities Korea CEO Kuo Ming-Cheng and Goldman Sachs Asia CEO Chung Hyung-jin.

He added the FSS will heighten market credibility by improving the dividend payment process and taking a strict approach to unfair trade activities.

The financial regulator in January pledged to scrap the registration system, along with other regulations hindering foreign investment.

Lee said the FSS has created a new team dedicated to reviewing foreign funds to expedite the screening process, alongside overseeing relaxed regulations on foreign bank branches and their won-denominated loan-deposit ratio, in accordance with requests raised during last year’s meeting.

The governor’s remarks were made on the same day the Ministry of Economy and Finance announced plans to allow registered foreign institutions to participate directly in the foreign exchange market in Korea in the fourth quarter.

Currently, offshore firms can only enter the foreign exchange market by opening a branch in Korea or trading through local banks.

The ministry also plans to extend trading hours for the foreign exchange market nearly threefold — from six and a half hours to 17 hours — as early as the second half of next year.

BY SOHN DONG-JOO [sohn.dongjoo@joongang.co.kr]