Abolition of Foreign Investor Registration System After 30 Years

Expansion of Post-Reporting Scope for Over-the-Counter Transactions

On the 9th, officials were busy moving in the corridor of the Financial Services Commission at the Government Seoul Office in Jongno-gu, Seoul, where financial authorities decided to include mortgage loans (Judaemae) in the 'debt refinancing' infrastructure scheduled to be launched in May by the end of the year. Financial authorities explained that they aim to reduce the interest burden on mortgage loans by building a debt refinancing platform that allows users to compare financial sector loan interest rates at a glance and switch loans easily. Photo by Dongju Yoon doso7@

The foreign investor registration system will be abolished after 30 years.

The Financial Services Commission announced on the 13th that the foreign investor registration system will be abolished starting tomorrow. This is expected to significantly improve access for investment in the domestic market.

Until now, foreigners wishing to invest in domestic listed securities were required to register in advance with the Financial Supervisory Service. The registration process took time and required many documents, which was criticized as a major obstacle for foreigners investing in the Korean stock market.

However, with the enforcement of the Capital Market Act Enforcement Decree abolishing the foreign investor registration system on the 14th, foreign investors will be able to invest in domestic listed securities without a separate prior registration procedure.

Additionally, it will become easier for foreign securities firms to operate omnibus accounts (where trades of multiple investors are consolidated into a single account). Starting from the 14th, the reporting frequency for omnibus account holders will be relaxed from "immediate" to "once a month" under the financial investment business regulations.

The scope of post-reporting for over-the-counter (OTC) transactions by foreign investors will also be expanded. Previously, OTC transactions allowed under post-reporting were limited to conditional sales, direct investments, stock options, inheritance, and gifts. Now, types with low need for prior review and high demand for OTC transactions have been included in the post-reporting category. Accordingly, OTC transactions such as stock dividends or acquisition of securities without a change in beneficial ownership can also be conducted through post-reporting.

The Financial Services Commission stated, "To support the smooth establishment of the new system starting tomorrow, we will operate a 'Joint Inspection Team with Related Agencies' for the time being and plan to update the guide on the website."

This content was produced with the assistance of AI translation services.