Seoul, December 13 - South Korea's Financial Services Commission announced on December 13 that the foreign investor registration system introduced in 1992 will be officially abolished on December 14. This historic reform is expected to significantly improve the ease of foreign capital inflow into South Korea**, which is expected to further promote the growth and internationalization of the KOSPI.
Since 1992, foreign investors wishing to invest in a South Korean listed company have had to register with the Financial Supervisory Service, a time-consuming and cumbersome process that requires a large number of documents. This system has long been cited as one of the main reasons for the so-called "Korea discount", which is the fact that South Korea** valuations are generally lower than those of other major markets due to barriers to foreign investment. The implementation of the new Capital Markets Act marks an important step in opening up South Korea** to international investors. The abolition of the registration system will not only simplify the investment process for foreign investors, but is also expected to attract more foreign capital to South Korea**, thereby increasing market liquidity and valuation.
KOSPI is the most important market index in Korea, including all the large companies listed on the Korean ** exchange, such as Samsung Electronics, LG Chemical, and Hyundai Motor. This reform is expected to have a direct and positive impact on KOSPI. More foreign capital is likely to pour into these large companies**, further fueling KOSPI's growth. In addition to abolishing the registration system, the Financial Services Commission of Korea is also promoting the improvement of other related systems to promote the further integration of Korea** with the international market.
From 1 January 2024, KOSPI listed companies will be required to publish an information disclosure announcement in English, which will greatly improve the ease and transparency of international investors' access to key company information. These reforms are expected to increase the attractiveness of South Korea** and may prompt more international** and investors to consider South Korea** in their portfolios. In the long run, this will help improve the international competitiveness of the Korean economy and may lead to long-term stable growth of KOSPI.
The abolition of the foreign investor registration system is an important moment in the history of South Korea, which not only symbolizes the country's openness to foreign investment, but also heralds a new chapter in KOSPI on the international stage. As Korea** further integrates with the global market, KOSPI's prospects for growth and internationalization look brighter.