South Korea is considering allowing foreign investors to directly trade local ETFs.

Sources revealed on Sunday that the South Korean financial regulatory authorities plan to lift restrictions and allow foreign investors to directly trade local exchange-traded funds. Currently, the South Korean composite stock price index has reached a significant increase, and this move is expected to attract more overseas funds into the market. According to related reports, the South Korean Financial Services Commission is in the process of revising regulations in the investment industry, permitting foreign investors to directly invest in local exchange-traded funds, and is planning to issue a preliminary announcement next month. Officials from the South Korean financial sector stated that further opening up the financial market to foreign investors can boost the demand for overseas funds in South Korean assets and increase the inflow of US dollars. Analysts believe that if the Financial Services Commission and the Ministry of Finance reach a consensus on matters related to withholding taxes, and after securities firms complete the upgrade and transformation of their trading systems, this policy is expected to be officially implemented in the second half of the year.