South Korea plans to allow overseas investors to directly invest in domestic exchange-traded funds (ETFs), in a bid to attract more foreign investment amid the country's primary stock market index's recent record rally, Yonhap News reported Sunday.
The Financial Services Commission is pushing for regulatory revisions to give foreign investors direct access to the country's ETFs and plans to issue a prior notice in June. The measure could be introduced in the second half of 2026 if the Financial Services Commission and the finance ministry resolve withholding tax issues and brokerages conclude trading system upgrades, analysts said, according to the report.
The Korea Composite Stock Price Index, or Kospi, has surged 82% so far this year, fueled by strong gains in the stocks of Samsung Electronics (KRX:005930) and SK Hynix (KRX:000660) amid the AI boom worldwide, it said.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)