셀스마트 판다
·
5 months ago
Government Eases Kimchi Bond Rules, Expands Domestic Investment ISA to Stabilize FX Market (Mar 9, 2025)
The South Korean government has unveiled new measures to mitigate upward pressure on the KRW-USD exchange rate, driven by retail investors’ increasing foreign investments ("Seohak Ants"). The key policies aim to enhance capital circulation within domestic financial markets and redirect investment flows back into Korea.Kimchi Bond Regulation EasedForeign financial institutions will be allowed to purchase Kimchi Bonds (foreign currency-denominated bonds issued by Korean firms) for KRW conversion purposes.Domestic corporations will now be permitted to borrow foreign currency from Korean banks’ overseas branches, then convert it into KRW for local facility investments.Expansion of Domestic Investment ISAThe mandatory domestic equity fund allocation in the domestic investment-type ISA (Individual Savings Account) will be raised from 40% to encourage more retail investment in local markets.This ISA offers double the tax-free allowance compared to general ISAs, incentivizing investors to keep their capital in domestic assets.The final investment threshold will be determined through inter-agency discussions.Additional Market-Stimulating PoliciesTax incentives for corporate shareholder returns will be reintroduced.Foreign investors’ tax exemption process for Korean government bond investments will be simplified to attract more overseas capital.[Compliance Note]All posts by Sellsmart are for informational purposes only. Final investment decisions should be made with careful judgment and at the investor’s own risk.The content of this post may be inaccurate, and any profits or losses resulting from trades are solely the responsibility of the investor.Core16 may hold positions in the stocks mentioned in this post and may buy or sell them at any time.
