First Vice Minister Kim Byoung-hwan met with Chairman of International at Bank of New York Mellon (BNY Mellon) Hani Kablawi on April 3 at the Government Complex-Seoul. At the meeting, they discussed global economic outlook and VM Kim elaborated on the government’s Improvement Measures for Foreign Exchange (FX) Market Structure and Corporate Value-up program.
During the meeting, VM Kim expressed gratitude for BNY Mellon’s proactive participation in FX transactions by signing up as a registered foreign institution (RFI), in line with the Korean government’s initiative to upgrade the onshore FX market structure. He also pledged to continue endeavors to enhance the accessibility of the Korean FX and capital markets for global investors going forward.
In particular, VM Kim highlighted that the government will back up the Corporate Value-up program by materializing tax incentives[1] in the near-term and continue to push forward the follow-up measures for the FX and capital market reforms by operating the pilot program[2] without a hitch ahead of the official implementation of Improvement Measures for FX Market Structure slated for July 2024.
Chairman of International Kablawi responded that he welcomed the Korean government’s efforts to advance the FX and capital markets and will closely work together in supporting the upgrade of Korean financial markets. He also stated that as Korea is an important market for BNY Mellon, it will strive to contribute to enhancing the accessibility and liquidity of the Korean capital market.
[1] Corporate tax burdens will be eased on a portion of the increase in shareholder returns.
[2] Four trial transactions have been made from February to March, 2024, and further trials are to be conducted at least twice a month from April to June.
Please refer to the attached files.
