Financial Supervisory Service Designates Luxembourg Stock Exchange as 'Overseas Major Market Recognized by the Governor'

On the 21st, the Financial Supervisory Service (FSS) announced that it has designated the Luxembourg Stock Exchange (LuxSE) as an 'Overseas Major Market Recognized by the Governor of the FSS' for the first time.

With this designation as an overseas major market recognized by the Governor, it is expected that domestic companies will find it easier to raise funds. The Luxembourg Stock Exchange is regarded as a top-tier global international bond exchange with regulatory stability.

Previously, domestic general companies had to submit a securities registration statement in Korea to issue foreign currency bonds by listing bonds on the Luxembourg Stock Exchange. However, with this new designation as an overseas major market, the submission of the securities registration statement is exempted when listing bonds on the Luxembourg Stock Exchange. Additionally, domestic listed companies will be subject to a simplified listing procedure (Fast-lane) when listing bonds on the Luxembourg Stock Exchange.

The FSS stated, "Since the review process for the prospectus will be replaced by a verification procedure for simplified documents, the time required for listing is expected to be significantly shortened."

The FSS plans to diversify the channels for issuing foreign currency bonds going forward. Last year, the issuance routes for foreign currency bonds by domestic companies were led by Singapore with KRW 22.4 trillion (93.7%), followed by Frankfurt with KRW 700 billion (3.0%), among others.

The FSS explained, "By reducing the costs of issuing foreign currency bonds through the simplified listing procedure, we will improve the conditions for foreign currency procurement. We also expect to enhance overseas investors' interest in domestic companies by laying the groundwork for entry into the European Union (EU)."

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