Gov"t Plan for F/X Trade Liberalization

The Ministry of Finance and Economy (MOFE) will implement its plan for the first stage of foreign exchange trade liberalization beginning April 1.
According to the plan that MOFE announced on March 19, the government will require MOFE's approval, as before, when Koreans borrow foreign money for periods under one year or issue securities in foreign markets.
But after the end of 2000, the government will completely liberalize these actions.
Regarding the shortage of banks which can handle foreign exchange business, the plan states that financial institutions will have to have a sound financial state as well as a perfect electronic banking system to be approved.
The plan declares that the Financial Supervisory Commission (FSC) will have full power on supervision, inspection, and sanctioning of financial institutions which conduct foreign exchange business.
Whereas, the supervisory and regulatory body for brokerage companies engaging in foreign exchange dealings will be the Bank of Korea.

Hyeong Ki Kim: myriad@joongang.co.kr