Foreign Currency Transactions
Korea’s finance ministry announced on November 11 that the Korean government will allow foreign currency transactions among brokerage firms starting next year as part of its efforts to enhance their competitiveness and nurture the local currency market.
Under current regulations, local brokerages are allowed technically to make transactions in foreign currency, which are, however, restricted to only those with banks.
According to the finance ministry, the government will complete the revision of the rules by the end of this year, with an aim to permit foreign currency transactions among brokerages from next year.
The ministry added that the revision is to enhance the overall competitiveness of local brokerage businesses in their foreign currency-related deals, and also to enlarge the scope and depth of the foreign currency market by increasing the number of market participants.