Recently, following an expansion of foreign capital inflows and improvements such as new regulatory reforms, iM Securities Research Institute projected that by January–February next year it would partially relax the constraints on the domestic stock market.
According to the institute, the current Korean economy is providing a more favorable environment for investors through easing foreign capital inflow restrictions. Accordingly, new regulatory reforms (new regulations) and similar financial regulations are expected to be gradually relaxed. These measures will facilitate corporate funding and strengthen market liquidity.
Also in the Premium 9 report, it was analyzed that such changes would pave the way for relaxing restrictions on the domestic market and restoring investor confidence. The institute particularly argued that expanding foreign investment inflow would have a positive effect on the capital market, predicting that by early next year there is high likelihood of easing constraints.
Finally, iM Securities emphasized that with current policy changes the domestic market could recover. Accordingly investors will focus on easing new regulatory reforms and re-evaluate corporate funding and growth prospects.
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