The Bank of Korea lifts restrictions on forex business institutions investing in kimchi bonds.

Gate News bot消息, according to Cryptonews, the Central Bank of South Korea has announced the lifting of restrictions on investments in kimchi bonds by financial institutions related to forex business. Institutions engaged in forex business, such as banks, securities companies, and insurance companies, have been allowed to freely invest in kimchi bonds.

The Bank of Korea also emphasized that to prevent abuse, private placement kimchi bonds remain prohibited. A central bank official stated: “We expect this measure to help alleviate the imbalance in forex supply and demand by improving forex liquidity and easing the pressure of the won’s depreciation.”

Kimchi bonds refer to non-Korean won denominated financial bonds issued in the South Korean market, often denominated in foreign currencies such as the US dollar. The term was first coined by Korea’s Woori Bank and encompasses bonds issued by foreign entities as well as non-Korean won bonds issued by domestic issuers.