Korea’s New FX Rules Renew Calls for More Fundamental Changes
- New measures to raise FX inflows as more Koreans invest abroad
- Authorities to ease hedging limits, foreigners’ tax paperwork
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South Korea’s new measures to boost foreign currency inflows are tinker-at-the-margins tweaks that will breed short-term stability while exposing the need for more fundamental policy changes, analysts say.
Among the rules introduced Sunday to boost investor interest include raising FX derivatives’ hedging limits, allowing domestic institutions to buy foreign currency-denominated “Kimchi” bonds, and streamlining foreigners’ tax paperwork.