The process for foreign corporations to open financial accounts in Korea will be drastically simplified.
Korea Securities Depository (KSD) said on the 2nd that, starting on the 1st, it launched a service to issue and deliver Legal Entity Identifier (LEI) issuance certificates to make it easier for foreign investors to enter the domestic capital market.
The service is a measure to improve access to the capital market as the government seeks inclusion in the MSCI developed markets index.
Until now, even corporations with an LEI verification level of "Level 1 (fully corroborated)" had to translate and notarize incorporation documents issued by their home country's corporate registry to submit proof of real-name verification in order to open a financial account.
Going forward, a single LEI issuance certificate, generated and delivered in real time by the depository through linkage with the Global Legal Entity Identifier Foundation (GLEIF) system, can replace complex real-name verification documents.
By signing up for membership on the KSD LEI-K website, users can apply for and receive an LEI issuance certificate online. The certificate includes key information such as the corporate name and address, and the embedded QR code allows real-time data cross-checking on the GLEIF website.
An official at Korea Securities Depository (KSD) said, "We will continue to do our utmost to strengthen the global competitiveness of Korea's capital market and support inclusion in the MSCI developed markets index."