Korea Moves to Allow Direct ETF and ETN Trading by Foreign Investors
South Korea's Financial Services Commission (FSC) is moving to allow foreign investors direct access to domestically listed Exchange-Traded Funds (ETFs) and Exchange-Traded Notes (ETNs). Currently, foreign investors face restrictions when trading these products directly, but the planned regulatory revision will enable trades through the consolidated foreign investor account, including both equities and ETFs/ETNs. This reform is expected to enhance foreign investors’ access to Korea’s capital markets and could lead to a significant increase in foreign trading volume.
These institutional improvements are in line with global standards and come amid strong demand from global securities firms and increased foreign investment driven by the bullish KOSPI market. The FSC notes that final adjustments to the tax code are necessary, with changes anticipated to be included in the July tax reform proposal. To address legal uncertainties before formal legislation, the FSC is considering issuing a no-action letter. Ultimately, these measures are expected to boost the Korean ETF and ETN market’s competitiveness, attract further foreign capital, and respond to long-standing requests from international market participants.
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Can foreigners directly trade ETFs on the Korean stock market... Legislation as early as next month - Kukmin IlboPlans are rapidly advancing for foreigners to directly trade ETFs (Exchange Traded Funds) and ETNs (Exchange Traded Notes) on the Korean stock market. It is expected that the influx of foreign investors will increase.
Foreigners also engage in direct transactions of Korean ETFs ... Accelerating introduction in the second half[On the 11th, the KOSPI surged over 4%, closing above 7,800 for the first time in history. Prices of KOSPI, SK Hynix, and Samsung Electronics are displayed on the billboard in the dealing room of Hana Bank's main branch in Jung-gu, Seoul. (Photo = Yonhap News)] The government is rushing to revise the system to allow foreigners to directly trade not only domestic stocks but also exchange-traded funds (ETFs) and exchange-traded notes (ETNs). The Financial Services Commission is working with the Ministry of Economy and Finance ...
Effort to Allow Direct Trading of Domestic ETFs by Foreigners... Introduced in Second Half After Tax Revision - Hans Economic| Seoul = Hans Economic Reporter Ha Ji-hyeon | The government has set out to reform the system to allow foreigners to directly trade domestic ETFs and ETNs. Once tax-related issues are sorted out, the Financial Investment Business Regulation amendment will be pre-announced next month, and if necessary, implementation could be expedited through a no-action letter. According to financial authorities on the 24th, the Financial Services Commission is pushing for a regulation change to expand the trading scope of foreigner integrated accounts from existing stocks to ETFs and ETNs. Foreigner integrated accounts allow foreign individual investors to trade domestic stocks without opening separate accounts with Korean securities companies. Financial Services Commission Chairman Lee Ok-won last 2