The FSC entered the MOU with the Korea Financial Investment Association and the Seoul Metropolitan Government.
FSC chief executive John Brogden said it was an important step in “deepening relationships between the two countries’ financial services sectors”.
“There is a tremendous opportunity to facilitate mutual cooperation between Australia and Korea to increase financial services trade and capital flows between our countries,” said Mr Brogden.
“Mutual recognition between our countries has a mutual benefit as we progress the Asia region funds passport and Korea-Australia free trade agreement.”
Both the Australian government and the FSC met with Korean officials last week to finalise the free trade agreement and promote the Asia region funds passport, as reported by InvestorDaily.
Mr Brogden said both countries are working together to increase investment in each respective market and to facilitate mutual market recognition for the financial institutions that each country represents.
The FSC is also calling for the Korean government to establish an investment office in Australia.
Mr Brogden believes an office would support direct relationships between Korean government-operated funds and Australian fund managers and would facilitate the development of deeper currency hedging services and access to equities, bonds and other assets.
“The Korean government has already established investment offices in the United States and the UK,” he said.
“These offices act to reduce the gap in information available to Korean investors directly through the two government-operated funds.”
