South Korea’s Financial Supervisory Service will boost oversight of foreign-capital flows to safeguard domestic financial markets from systemic risks posed by ‘hot money,’ The Wall Street Journal reports. The regulator will focus on how financial firms get foreign-currency-denominated funding and how they manage foreign-currency capital.
It will also increase monitoring of trading of foreign-exchange derivatives as well as foreign-currency-liquidity risk management. The authority is also considering reinstating a tax on foreign investors’ purchases of local government bonds.
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