AMCHAM urges regulatory overhaul for Korea’s financial hub ambitions

The American Chamber of Commerce in Korea releases its special report, titled "Korea’s Financial Hub Agenda," Wednesday. Courtesy of AMCHAM

The American Chamber of Commerce in Korea (AMCHAM) released a special report Wednesday calling for sweeping regulatory reforms to bolster Korea’s bid to become a leading global financial hub.

Titled “Korea’s Financial Hub Agenda,” the report outlines policy recommendations aimed at strengthening the country’s regulatory competitiveness and aligning its financial framework with global standards.

Korea’s capital markets have gained notable momentum in recent years. The Korea Exchange is now the world’s ninth-largest bourse by market capitalization, while the benchmark KOSPI has climbed from below 5,000 to above 6,000 under the administration of President Lee Jae Myung. The government is also pushing for inclusion in the MSCI Developed Market Index as part of broader efforts to elevate Korea’s global market status.

AMCHAM said the report builds on years of advocacy to position Korea as a premier business hub in the Asia-Pacific region, highlighting opportunities to further enhance its regulatory environment in line with recent market growth.

“This report marks AMCHAM’s first publication focused on the financial services sector and reflects our continued support for President Lee’s initiative to strengthen Korea’s capital markets, including the goal of MSCI Developed Market Index inclusion,” AMCHAM Chairman James Kim said.

“With the KOSPI having recently surpassed the 6,000 mark, Korea is demonstrating strong momentum as a potential regional financial hub. Sustaining this trajectory will require closer alignment of Korea’s regulatory framework with global standards and reinforcing its appeal as a reliable market for international investors.”

The report identifies 39 regulatory issues based on input from major U.S. banks and securities firms operating in Korea. These include 15 cross-sector issues, 13 in banking and 11 in securities, along with 10 priority reform areas deemed critical to improving Korea’s attractiveness to global financial institutions.

It also underscores broader structural challenges shaping Korea’s financial competitiveness, including the need for greater regulatory flexibility, modernization of IT regulations to support artificial intelligence (AI)-driven innovation, enhanced interoperability with global financial systems, improved market access and licensing regimes, and increased transparency in regulatory processes.

Among key recommendations, AMCHAM calls for reforms to IT network separation and cloud regulations, updates to legacy rules governing cross-border financial operations and strengthened regulatory consultation mechanisms to enhance investor confidence and policy predictability.

The report has been shared with relevant government stakeholders, and AMCHAM said it plans to continue engagement through follow-up meetings and policy consultations, with a focus on advancing its priority reform agenda.

AMCHAM reaffirmed its commitment to supporting Korea’s financial hub ambitions and strengthening the country’s position as a preferred regional headquarters for global financial institutions.