South Korea finance ministry says it may ban foreign banks arranging global bond deals
An employee walks at an empty park near a financial district amid the coronavirus disease (COVID-19) pandemic in Seoul, South Korea, September 10, 2020. REUTERS/Kim Hong-Ji
SEOUL, Oct 8 : South Korea is considering prohibiting investment banks without domestic securities licenses from arranging offshore bond sales of local issuers amid an overseas issuance boom, a Ministry of Finance and Economy official told Reuters.
The Ministry of Finance and Economy is gathering feedback from banks with domestic securities licenses on plans for such a ban, the official, who has direct knowledge of the regulatory move, said on Thursday.
Japan's MUFG and Australia's ANZ are among the unlicensed investment banks that have arranged the largest volume of overseas debt fundraising, and would be subject to the planned restrictions, the official said.
Neither MUFG nor ANZ currently holds a securities licence in South Korea, according to the official.
MUFG and ANZ did not immediately respond to Reuters' request for comment.
The ministry, which oversees the country's foreign exchange policy, and market regulator plan to make an official announcement soon after collecting the market's views, according to the official.
Major underwriters arranged a total of $53.1 billion in foreign currency bond issuance for South Korean companies in the first half of 2026, marking a 33 per cent increase from the same period a year ago as demand for overseas debt funding rose, Yonhap News Agency reported.
Local media Seoul Economic Daily first reported the regulatory talks on Tuesday, citing a survey launched by the ministry.
