Do you like how Korea is cracking down on illegal shorting? Good news! Korea is improving market access for foreign investors by abolishing the need for 'investment registration certificates'.

Have you been reading about how Korea extended its short sale ban to March 2025 and is taking additional steps to prevent illegal trading activities and thought it would be awesome to be in the Korean markets?

Good news! Today, Korea's Financial Service Commission (FSC) is improving market access for foreign investors by abolishing the need for Investment Registration Certificates.

To accomplish this, FSC has removed the prior registration requirement for foreign investors, effective December 14, 2023, enhancing access to the Korean market for foreigners. This change, which eliminates the need for an Investment Registration Certificate (IRC) that has been in place since 1992, allows foreign investors to use Legal Entity Identifiers (LEIs) or passport numbers to open investment accounts without registering with the Financial Supervisory Service (FSS).

In the six months following the abolition of the IRC requirement, 1,432 new investment accounts were opened by foreign investors, including 1,216 corporate entities and 216 individual investors, at 36 securities firms and banks. The monthly rate of new account openings has increased significantly compared to the average monthly IRC issuance in 2023, indicating improved market access for foreign investors. In particular, from March this year, the number of new account opening by foreigners has grown to about 300 to 400 every month.

Korea Financial Service Commission: Short Sale Ban Extended Until March 30, 2025.

Korea's Financial Service Commission to Implement Short Sale Reform Measures Introduced to Prevent Illegal Trading Activities and Protect Investors.

TLDRS:

• Have you been reading about how Korea extended its short sale ban to March 2025 and is taking additional steps to prevent illegal trading activities and thought it would be awesome to be in the Korean markets?
• Good news! The FSC has abolished the need for Investment Registration Certificates (IRC) for foreign investors, effective December 14, 2023.
• This change, eliminating the IRC requirement since 1992, allows foreign investors to use Legal Entity Identifiers (LEIs) or passport numbers to open accounts without registering with the Financial Supervisory Service (FSS).
  • In six months post-abolition, 1,432 new investment accounts were opened by foreign investors, significantly increasing market access.
  • Monthly new account openings have risen to 300-400, compared to an average of 105 per month in 2023.