By Yoon Ja-young
Beginning next year, foreign banks operating in Seoul will not have to get approval from the nation's financial regulator for their financial statements.
"Important strides have been made in relaxing financial regulations for foreign financial companies," Financial Supervisory Service (FSS) Governor Zhin Woong-seob said in a meeting with heads of foreign financial companies operating in the country, Tuesday.
Foreign banks now have to submit their financial statements to the bank watchdog within two months before the settlement date.
As it is now, they can send their profits and dividends back to their headquarters only after getting approval from the supervisory body.
The governor, however, said the regulation will be scrapped to lessen the burden on foreign banks. "The rules are slated to be eliminated in the near future so that more autonomy will be in place in remitting earnings for foreign banks," he said.
The regulator plans to revise rules for bank supervision in January.
It also plans to simplify the investment process for foreign funds, easing the registration of funds.
At the meeting, Zhin said the regulator has been making efforts to implement several financial reforms, removing unreasonable regulations.
"Shadow regulations have been removed, rooting out ill practices such as prior consultation that lacked legal grounds," he said. "We will no longer intervene in pricing issues associated with commissions or interest rates."
At the meeting were the heads of 21 foreign financial companies operating in Korea, including BNP Paribas, Nomura Financial Investment, Kyobo AXA Asset Management, Metlife, ACE American Fire and Marine Insurance.
They suggested the supervisor lessen their burden related to diverse issues such as outsourcing of data processing to headquarters and internal control systems.
The governor hoped foreign financial companies will take advantage of their strengths to drive competition in raising the quality of products and services.
"Though the situation is hard for both domestic and foreign financial companies, if foreign financial companies adopt a differentiated approach, they will be able to gain positive results," he said.
Beginning next year, foreign banks operating in Seoul will not have to get approval from the nation's financial regulator for their financial statements.
"Important strides have been made in relaxing financial regulations for foreign financial companies," Financial Supervisory Service (FSS) Governor Zhin Woong-seob said in a meeting with heads of foreign financial companies operating in the country, Tuesday.
Foreign banks now have to submit their financial statements to the bank watchdog within two months before the settlement date.
As it is now, they can send their profits and dividends back to their headquarters only after getting approval from the supervisory body.
The governor, however, said the regulation will be scrapped to lessen the burden on foreign banks. "The rules are slated to be eliminated in the near future so that more autonomy will be in place in remitting earnings for foreign banks," he said.
The regulator plans to revise rules for bank supervision in January.
It also plans to simplify the investment process for foreign funds, easing the registration of funds.
At the meeting, Zhin said the regulator has been making efforts to implement several financial reforms, removing unreasonable regulations.
"Shadow regulations have been removed, rooting out ill practices such as prior consultation that lacked legal grounds," he said. "We will no longer intervene in pricing issues associated with commissions or interest rates."
At the meeting were the heads of 21 foreign financial companies operating in Korea, including BNP Paribas, Nomura Financial Investment, Kyobo AXA Asset Management, Metlife, ACE American Fire and Marine Insurance.
They suggested the supervisor lessen their burden related to diverse issues such as outsourcing of data processing to headquarters and internal control systems.
The governor hoped foreign financial companies will take advantage of their strengths to drive competition in raising the quality of products and services.
"Though the situation is hard for both domestic and foreign financial companies, if foreign financial companies adopt a differentiated approach, they will be able to gain positive results," he said.
