South Korean Government Discards Registration for Foreign Stock Traders

The Financial Services Commission announced on December 13 that foreigners can open accounts with internationally used identification documents, such as an individual's passport or a Legal Entity Identification Number (LEI) for organizations.

In a statement issued after the finalization of the regulatory changes, the commission said the requirement that companies trading securities through omnibus accounts report their trade information once a month within two days of the close has also been relaxed.

The changes are part of the South Korean government's efforts to improve foreign access to the country's stock market, which includes plans to apply to companies listed in last year's filing of business documents in English.

However, foreign investors last month criticized Korea's sudden ban on short-selling stocks, reducing market transparency and restricting foreign flows.