South Korean financial authorities have decided to revise the country’s foreign exchange transaction law which was introduced in 1999 following a public outcry over policy limits, the Korea Times reported on Friday.
As part of the review, the outlet reports, the South Korean government sanctioned nine securities firms for engaging in foreign exchange business, serving both businesses and individuals. Initially, only four brokerages were allowed and they were limited to corporate investors only.
The Korean Times further reports that the move will help reduce the commission charged for exchanging money as banks and brokerages compete for customers.
The adjustment of long-standing currency rules also affects other areas. For example, while South Koreans currently have to pay less than $50,000 a year to avoid submitting documentary evidence of the fund, from June they will be able to do the same up to $100,000 a year.
Additionally, the overhaul also means that businesses in the country are no longer limited to $30 million in terms of the amount of foreign currency they can borrow without having to declare it to the country’s finance ministry. The amount has now been revised upwards to $50 million. The change came in response to the desire of South Korean business owners to expand their global presence.
In addition, South Korean business organizations under the revised policy are no longer required to file regular reports to the country’s financial authorities on their overseas branches or their stake of more than 10% in a business. foreign company; they can now only complete the report once a year.
South Korea welcomes offshore companies to foreign exchange markets
In the meantime, finance tycoons recently reported that South Korea is seeking to approve the participation of offshore companies in its local foreign exchange markets in order to comply with global standards. The country is also considering extending the operation of its foreign exchange markets to 5 p.m. a day to allow trading to continue until London business hours.
Currently, only 54 certified local financial institutions, including banks and securities firms, are allowed to participate in the interbank foreign exchange market in South Korea. However, the government intends to change this by allowing registered offshore companies, except major trading companies and hedge funds, to engage in the country’s currency spot and swap trades.
South Korean financial authorities have decided to revise the country’s foreign exchange transaction law which was introduced in 1999 following a public outcry over policy limits, the Korea Times reported on Friday.
As part of the review, the outlet reports, the South Korean government sanctioned nine securities firms for engaging in foreign exchange business, serving both businesses and individuals. Initially, only four brokerages were allowed and they were limited to corporate investors only.
The Korean Times further reports that the move will help reduce the commission charged for exchanging money as banks and brokerages compete for customers.
The adjustment of long-standing currency rules also affects other areas. For example, while South Koreans currently have to pay less than $50,000 a year to avoid submitting documentary evidence of the fund, from June they will be able to do the same up to $100,000 a year.
Additionally, the overhaul also means that businesses in the country are no longer limited to $30 million in terms of the amount of foreign currency they can borrow without having to declare it to the country’s finance ministry. The amount has now been revised upwards to $50 million. The change came in response to the desire of South Korean business owners to expand their global presence.
In addition, South Korean business organizations under the revised policy are no longer required to file regular reports to the country’s financial authorities on their overseas branches or their stake of more than 10% in a business. foreign company; they can now only complete the report once a year.
South Korea welcomes offshore companies to foreign exchange markets
In the meantime, finance tycoons recently reported that South Korea is seeking to approve the participation of offshore companies in its local foreign exchange markets in order to comply with global standards. The country is also considering extending the operation of its foreign exchange markets to 5 p.m. a day to allow trading to continue until London business hours.
Currently, only 54 certified local financial institutions, including banks and securities firms, are allowed to participate in the interbank foreign exchange market in South Korea. However, the government intends to change this by allowing registered offshore companies, except major trading companies and hedge funds, to engage in the country’s currency spot and swap trades.