SEOUL, June 5 (Xinhua) -- South Korea's financial regulator said on Monday that it will abolish the 30-year-old advance registration system for foreigners investing in local-listed stocks and bonds, starting from December.
The relevant enforcement decree was approved through the cabinet meeting earlier in the day, allowing foreigners to trade local-listed stocks and bonds without advance registration with the authorities, according to the Financial Services Commission (FSC).
The decree was scheduled to come into force on Dec. 14.
The regulation was introduced in 1992 to control the foreign ownership of local listed stocks, but the ceiling on the foreign ownership was in principle abolished in 1998, the FSC said.
The abolition of the prior registration system, which required time and documents from foreigners to open accounts for investment, would improve foreign investors' access to the domestic stock market, the financial regulator noted.
Under the revised rule, foreigners will be allowed to open accounts with securities firms through passport numbers for individuals and legal entity identifier for companies.
Those already registering with the authorities will be able to keep using the same registration ID.