Legislation paving way for Korean offshore move

A hundred funds will have investment rules liberalized.

South Korea's Ministry of Finance and Economy and Ministry of Planning and Budget are preparing a draft law for the National Assembly that would let approximately 100 government-sponsored asset pools invest in domestic stocks and international securities

Among those affected is the Korea Credit Guarantee Fund, which has W4 trillion ($3 1 billion) of assets under management - all invested in domestic fixed income, mainly government bonds

Gwak Sung-chul, deputy director for international affairs at KCGF, says the two ministries are keen to prod these myriad of funds to diversify into what Koreans consider "risky assets" - equities and offshore securities

The law change would apply to "financial funds" such as KCGF and a host...

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