S. Korea to make it easier for financial firms to establish foreign branches

▲ The photo provided by the Financial Services Commission shows its logo. (PHOTO NOT FOR SALE) (Yonhap)

financial companies-overseas business

S. Korea to make it easier for financial firms to establish foreign branches

SEOUL, Nov. 26 (Yonhap) -- The financial regulator said Sunday it will ease regulations on financial companies reporting their establishment of foreign branches and investments in offshore funds.

The Financial Services Commission (FSC) said an advanced notice will be issued for the revision to the regulation on financial companies' overseas operations for a week starting Saturday.

Under the revised rule, financial firms can first invest in an offshore fund or establish a branch in a foreign country and report the matter to the FSC or the Financial Supervisory Service within a month afterward.

Currently, the companies are obliged to first report their plans to the regulators when investing more than US$20 million a year in an offshore fund or establishing a foreign branch.

The planned revision will also allow financial companies to only make an initial report on capital calls related to offshore funding, unlike the current regulation that requires the companies to file a report every time there is a capital call.

The regulation revision will be confirmed through a FSC vote after the advanced notice period is over.

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