South Korea mulls ban on foreign banks handling offshore bond issuances
The Finance Ministry is consulting domestic-licensed banks about prohibiting foreign banks from arranging offshore bond sales for Korean issuers amid a surge in overseas issuance.
A senior official from the Ministry of Finance and Economy disclosed that the government is evaluating a restriction on investment banks lacking a Korean securities licence from structuring offshore bond deals for local borrowers. The ministry is currently gathering opinions from banks that hold domestic licences before finalising the rule. An announcement is expected once this feedback is reviewed. The move follows a recent spike in foreign-currency bond issuance by Korean entities.
Why it matters
The rule could limit foreign banks' role in Korean bond financing, affecting market access and capital costs for issuers.
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