Gov"t Deregulates Rules on Acquiring Equities Banks

The government announced on September 8 that it would abolish the regulation under which Koreans can acquire equities banks issued only within the limitation of foreigner's equity rate. For example, in the case a foreigner owns 15% equities in 'A' bank, Koreans can acquire a maximum of 15% equities of that bank.
Due to this regulation, there has been a strong criticism that the government discriminates against Koreans in owning banks. The government, however, intends to maintain the regulation that an investor can acquire bank equities from 4%, while up to 10% of acquisition will have to be reported to the government, and if it exceeds 25% to 33% then he needs to get permission from the government.
The Ministry of Finance and Economy plans to submit a revised bank bill to the National Assembly within the month.