S. Korea Allows Brokerages to Loan in Foreign Currencies
MARCH 30, 2015
Seoul. South Korea is to allow top local brokerages to provide foreign-currency loans to their clients under a long-anticipated deregulation drive in the sector, the finance ministry said on Monday.
The move, effective Tuesday, was in line with ministry plans, but the threshold eligible for the measure was newly set at 1 trillion won ($905 million) in terms of equity capital, under which nine companies qualify, it said in a statement.
They are Daewoo Securities, Woori Investment & Securities, Samsung Securities, Korea Investment & Securities, Hyundai Securities, Shinhan Investment, Mirae Asset Securities, Daishin Securities and Hana Daetoo Securities.
The regulations do not specify what the foreign funds must be used for.
The ministry also said it would ease regulations on foreign-currency borrowings by brokerage companies when they borrow up to $50 million.