Latest news with #marketreforms
Reuters
3 days ago
- Business
- Reuters
South Korea financial watchdog chief vows fair market, shareholder representation
SEOUL, Aug 14 (Reuters) - South Korea's financial watchdog chief vowed to root out unfair practices and establish a market order in which the rights of minor shareholders are respected, as he took office on Thursday, amid investor hopes of market reforms. The appointment of a new watchdog chief comes as the government has pledged a series of market reforms in a country trying to tackle a so-called "Korea discount", which refers to a tendency for local companies to have lower valuations than global peers due to factors such as low dividend payouts and the dominance of opaque conglomerates known as chaebols. "Companies should adopt shareholder value-oriented, fair governance systems," Lee Chan-jin, governor of the Financial Supervisory Service, said in his inauguration speech. "I will establish a market order in which the rights and interests of both major and regular shareholders are equally respected," Lee said. Lee also vowed to respond firmly to market-disturbing behaviour, such as stock price manipulation and abuse of monopolistic power, under a principle of zero tolerance. Governor Lee was appointed by President Lee Jae Myung, who has pledged various market reforms under his "KOSPI 5,000" initiative, including a legislative amendment aimed at better protecting shareholder rights, since taking office on June 4. The benchmark KOSPI stock index (.KS11), opens new tab hit a four-year high of 3,254.47 points in a post-election rally last month, before government tax hike proposals triggered investor scepticism over its market reform push. Governor Lee is a lawyer and a former classmate of President Lee during their judicial service training and represented the liberal president when he faced legal challenges, according to media reports. The newly appointed FSS chief succeeds Lee Bok-hyun, whose term ended in June. The former governor also had a legal background as a prosecutor before being appointed to the role, which is usually held by finance officials.
Reuters
04-07-2025
- Business
- Reuters
South Korea launches new measures to boost won-trading during extended hours
SEOUL, July 4 (Reuters) - South Korea has introduced new measures to boost currency trading during extended market hours, after a year of market reforms to open up the onshore foreign exchange market, its finance ministry said on Friday. The Asian nation has for years been trying to win an upgrade to developed market status from global index provider Morgan Stanley Capital International (MSCI), which has cited currency market accessibility as the main factor in hindering foreign investment. The government plans to set up a task force on getting the developed market status, the country's vice finance minister said this week, after MSCI said last month in its annual review that it would continue to monitor market accessibility in South Korea. The new measures include imposing an annual average transaction requirement of $100 million on registered foreign institutions (RFI) and extending an exemption on reporting requirements by an additional six months to the end of this year. The $100 million requirement will be reviewed every three years. The ministry also said it would continue efforts to make foreign exchange transactions easier for foreign investors and domestic customers and allow algorithm trading for domestic financial institutions during short-staffed, night-time hours. Marking the first anniversary of extended trading hours from the previous to 2 a.m. local time to cover London trading hours, the ministry selected five institutions as leading RFIs with rewards for active market participation. The five firms are: Deutsche Bank's London Branch, KEB Hana Bank's London Branch, Standard Chartered Bank's London Head Office and State Street Bank and Trust Company's Hong Kong and London Branches.
CNA
04-07-2025
- Business
- CNA
South Korea launches new measures to boost won-trading during extended hours
SEOUL :South Korea has introduced new measures to boost currency trading during extended market hours, after a year of market reforms to open up the onshore foreign exchange market, its finance ministry said on Friday. The Asian nation has for years been trying to win an upgrade to developed market status from global index provider Morgan Stanley Capital International (MSCI), which has cited currency market accessibility as the main factor in hindering foreign investment. The government plans to set up a task force on getting the developed market status, the country's vice finance minister said this week, after MSCI said last month in its annual review that it would continue to monitor market accessibility in South Korea. The new measures include imposing an annual average transaction requirement of $100 million on registered foreign institutions (RFI) and extending an exemption on reporting requirements by an additional six months to the end of this year. The $100 million requirement will be reviewed every three years. The ministry also said it would continue efforts to make foreign exchange transactions easier for foreign investors and domestic customers and allow algorithm trading for domestic financial institutions during short-staffed, night-time hours. Marking the first anniversary of extended trading hours from the previous to 2 a.m. local time to cover London trading hours, the ministry selected five institutions as leading RFIs with rewards for active market participation. The five firms are: Deutsche Bank's London Branch, KEB Hana Bank's London Branch, Standard Chartered Bank's London Head Office and State Street Bank and Trust Company's Hong Kong and London Branches.
