Submission of corporate documents is compulsory in English, and foreign investors invest in the stock market with only their passports and switch to follow-up supervision.
The Financial Services Commission is amending the English disclosure system of domestic corporations to make it mandatory for KOSPI-listed companies with assets of 10 trillion won or more or a foreign ownership ratio of 30% or more (assets 2 to 10 trillion won) to submit documents such as settlement of accounts and disclosures in English by phased implementation from next year. was announced on the 24th.
The mandatory English document for corporations is subject to 82 items, including ▲ settlement of accounts ▲ statutory disclosure ▲ matters accompanying transaction maintenance, etc., and from 2026, companies subject to compulsory obligations will be expanded to KOSPI-listed companies with assets of 2 trillion won or more. announced that it would allow opening an account with only an individual's passport or legal entity identifier (LEI), and that it would abolish the existing foreigner registration rules for Korean stock trading.
The Financial Services Commission switched to a system that supervises securities companies and imposes sanctions in case of violation, while securities companies are in charge of foreigner identity verification and account information management in the 'Measures for Improving Foreign Investors' Access to the Capital Market'.
In order to expand core over-the-counter transactions in this vitalization of foreign investment, the Financial Services Commission will ease “restrictions” and switch to post-reporting instead of pre-reporting.
The transition to the FSC's post-supervision system is to revise the enforcement decree of the Capital Markets Act and the regulations and enforcement rules of the financial investment business in the first half of the year, and to develop the system.
Deputy Prime Minister Choo Kyung-ho held a 'special session explaining the Korean economy' at the Davos Forum on the 19th and said, "Starting this year, we will reform the Korean capital market in a way that is foreign-investor-friendly and meets global standards."
The Bank of Korea's foreign investment by Koreans is $2.82857 trillion (Q3 2022), and foreign investment that has entered Korea is $1.296851 trillion, about 60%.
From 2021, the increase in overseas securities investment by Koreans is $ 12.5 billion, while the increase in foreign domestic investment is half that of $ 6.2 billion.
In 2021, domestic foreign direct investment was $12.06 billion, while foreign domestic investment was only $2.21 billion.
Overseas stock investment by Koreans in 2021 was $78.41 billion, the highest ever, and among them, overseas stock investment increased by $68.58 billion, ranking first ever.
The Bank of Korea's goods balance surplus decreased significantly by $6.12 billion from $10.6 billion to $4.48 billion in December 2020, and the decline in the trade surplus in the product balance became stronger after that.
The Bank of Korea's current account deficit in November of last year was 620 million dollars, and it decreased by a whopping 7.44 billion dollars from the current account surplus of 6.82 billion dollars in 2021 before that. It's $70 million, and it's already been in the red for two months in a row.
<Sudden change of 6.2 billion won in foreign investors due to an increase of 12.5 billion won in overseas securities investment, see February 10, 2022>