Korea’s Financial Authorities to Expand Foreign Investors’ Access to ETFs and ETNs
The Financial Services Commission (FSC) has announced plans to broaden foreign investors’ access to the domestic capital market by expanding eligible assets in integrated accounts to include exchange-traded funds (ETFs) and exchange-traded notes (ETNs). This initiative is expected to significantly improve the investment environment for international investors and accelerate foreign capital inflows into Korean ETFs and ETNs. In addition, the FSC is set to organize the ‘Korea Premium Week’ in September and conduct overseas investor relations activities to attract promising global companies to list on the KOSDAQ, thereby enhancing market activity.
Furthermore, the commission is considering introducing a promotion and relegation system for the KOSDAQ to foster greater market dynamism, while also emphasizing stronger investor protection measures for leveraged products based on underlying assets such as Samsung Electronics and SK hynix. The draft guideline on prohibiting multiple listings is scheduled for release later this month or early next month, with standardized procedures that enhance shareholder protection. Collectively, these policy shifts are anticipated to strengthen the competitiveness and reliability of Korea’s capital markets globally.
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