ABSTRACT
I N T E R N A T I O N A L I Z A T I O N OF THE KOREAN CAPITAL MARKET
In January 1981 the Korean government announced its first Capital Market Internationalization Plan, which specified four stages of gradual movement toward full integration of the domestic and foreign capital markets. These stages and the timing originally envisaged were as follows:
Stage 1 (1981-4) Allow foreign investors to invest indirectly in Korean securities. As a launching step, the government allowed two domestic securities companies to set up international investment trust funds in Europe and allowed a closed-end fund (the Korean Fund) to be established in the USA. In addition foreign securities firms were encouraged to establish representative offices in Korea, while domestic securities firms were encouraged to establish branches in foreign countries.
