South Korea Weighs Rules Barring Unlicensed Investment Banks From Arranging Overseas Bond Sales for Local Issuers

The proposal targets the cross-border channel rather than the bond itself, which matters because Korean issuers have leaned on offshore banks precisely for deals that domestic houses may not have the balance sheet or network to place. It also blurs the line between arranging and underwriting, a distinction that has historically let foreign banks serve Korean clients without a full domestic licence. The open question is whether issuers absorb higher execution costs or shift more deals onshore — and whether the rule survives industry pushback.